Cyprus has scrapped a $1.3 billion concession agreement for the development of Larnaca port, according to local media reports on Monday.
The concessionaire, Kition Ocean Holdings held a long-term lease to develop and operate both a yachting marina and a commercial port in the southern port town.
However, the government accused the company of breach of contract over its failure to renew a letter of guarantee.
The company denied the allegation, stating that the government’s action coincided with separate legal proceedings Kition had initiated to seek implementation of the concession agreement.
Kition Ocean Holdings said the government’s decision was in breach of the terms of its agreement with the state.
“We applied to the court two months ago to force the Government to follow their own agreement and to meet and solve the disputes in line with the agreement.
“The Government’s behaviour undermines the rule of law that should exist to protect investors,” it said.
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