The Government will resort to the Legal Service in case the guarantee is not deposited by Kition Ocean Port on Tuesday, the contractor company responsible for the unified development of Larnaca port and marina, stated Minister of Transport, Communications, and Works Alexis Vafeades to CNA.

"Last Monday, April 15," he continued, "a meeting was held at the Presidential Palace, chaired by the President of the Republic Nikos Christodoulides, during which the contractor company Kition Ocean Port had committed to immediately deposit the new guarantee of 4.2 million euros. We consider one week a reasonable time for someone to issue a guarantee for this amount."

He added that "if by the end of the day the guarantee is not submitted, we will contact the contractor company to see what their intentions are, whether they have encountered any problems. If we perceive that the company does not intend to submit the guarantee, then we will turn to the Legal Service for guidance on contract handling."

Asked whether a deadline was given to the company for the guarantee payment, the Minister replied, "no deadline has been set. We have said that when a reasonable period passes, then we should reconsider our stance," he said, adding, "I consider one week and a day a reasonable timeframe."

Responding to a relevant question, Mr. Vafeades said, "because we have before us a very substantial breach of the contract, it is a very serious situation and our handling should be equally serious."

To another question, the Minister of Transport said that the termination of the contract "is a complicated process since it concerns a critical infrastructure for the operation of the State and cannot be interrupted for a single moment. However, this is provided for in the contract, in case this happens (termination of the contract) there is a procedure that describes step by step how the State takes over the port operation."

After stating that "we do not want to get there," the Minister of Transport noted that "if necessary, we must be prepared to implement it."

Asked why the contract contents are kept secret from the public, the Minister of Transport explained that "many public contracts have this confidentiality clause. This specific contract for the unified development of Larnaca port – marina is confidential, it can be disclosed to Members of Parliament, provided that the confidentiality of the contract is maintained."

Regarding the issue raised by the investor to proceed first with the land development projects and then with the projects at Larnaca Marina, the Minister said that "we face the same issue in many contracts, as the contracting companies try to improve the situation to their advantage. What we are obliged to do is to ensure the public interest, which is defined through the terms of the contract."

He further noted that "if we can help a contract, we will do so, provided it falls within the framework of legality. In this specific case, the competent Committee defined by the contract and composed of experts from various branches with expertise on all issues arising, will evaluate the company's requirements."

He concluded that the competent Committee "will give the official position of the State and we will then respond to the contractor company, accordingly."