As noted, despite the passage of several years since the declaration of these specific spaces and the submission of applications, dating back to 2018–2019, the implementation of the projects shows significant delays.

The yacht mooring spaces were established with the aim of boosting marine tourism and attracting investment through the organized utilization of the coastal and marine space of the Republic of Cyprus.

Within this framework, the state proceeded to declare specific marine areas and established a licensing process through which private individuals acquire development and management rights for the relevant projects.

Consequences of Prolonged Stagnation

According to the Audit Office, the passage of time without substantial progress in licensing and project implementation results in public marine spaces remaining reserved for long periods, potentially depriving the state of the opportunity to utilize them for other purposes of public interest.

At the same time, data examined by the Audit Office reveals that holding these relevant licenses can yield financial benefits for the beneficiaries, either by enhancing the value of the developments or through their utilization within business transactions.

The concern of the competent bodies, as well as the Audit Office, was whether the legislation provides for an obligation to pay an annual fee by the beneficiaries from the start of the licensing process, and not only after the development becomes operational,given that the beneficiaries demonstrably derived a benefit.

The Position of the Legal Service

Upon reviewing the matter, the Legal Service issued an opinion stating that imposing an annual fee before the legal commencement of a facility's operation could be considered highly burdensome and potentially unconstitutional.

From meetings among the competent authorities, it was established that, given the Legal Service's position, addressing the issue could only be achieved through legislative intervention to set a differentiated, perhaps lower, annual fee for the interim period until all required permits are secured.

"Despite the above common finding, no relevant bill has been promoted to date, resulting in the spaces remaining reserved without the beneficiaries paying an annual fee," the Audit Office notes.

At the same time, it deems it necessary to establish clear consequences for cases of unjustified delays.

The competent Authority should have the ability to revoke the relevant licenses or push for the de-classification of the spaces when beneficiaries, through their own responsibility, fail to comply with obligations and timelines.

"Only through a clear, balanced, and enforceable framework will the protection of the public interest and the effective utilization of these specific development spaces be ensured," proposes Andreas Papaconstantinou, the Auditor General of the Republic.

Source: ink.com