Case Studies: Larnaca Port and Marina Re-development, Cyprus

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Project Overview
Larnaca1.png
Figure 1: Larnaka Port & Marina, Current Condition and proposed plan
Larnaka Port & Marina Re-development, Cyprus
Project Type: Both
Contract Duration: 35 years for the Port and Marina Infrastructure and 99 years lease for residential units
Budget: ~EUR 800M
Project Time Line
Project conceived: April, 2005
Tender Advertisement of Contract Notice: October 2005
Invitation to Tender (ITT): November 2006
Contract Award: August 2012
Financial Close: Pending (This date has been since extended multiple times. The last extension was exhausted end Feb 2015 with no progress.)


Introduction

For a peripheral, small and insular Member State of the EU such as Cyprus, the extension and upgrading of port infrastructure constitutes a significant factor for enhancing access capability to EU markets. The main strategic objective for a comprehensive development of Cyprus port infrastructure is the enhancement of competitiveness and effectiveness, in order to respond to the modern needs for mobility of passengers and goods. Their role as important nodes in serving international trade is also upgraded in this way. In respect to Trans-European Network maritime policy, Cyprus considers that emphasis should be given in supporting maritime transport of passengers, especially for peripheral/ insular Member States, both as an alternative to air travel in general, but more specifically as an emergency service to maintain connectivity among Member States during incidents of air transport crises (e.g. natural disasters, terrorist activity and others). It should be noted that currently air transport is the only mode of passenger transport to/from Cyprus, because there are no ferry services (passenger ships) that connect Cyprus with Continental Europe or other neighboring Countries. Passenger ships in Cyprus Ports provide exclusively cruise services.

Larnaka is the third largest city on the southern coast of Cyprus, with an urban population of 86.700 (2012). Three main transport infrastructure elements for Cyprus and international gateways for the entire island are located in Larnaka: the island's largest airport (Larnaka International Airport) the Port of Larnaka and the Marina of Larnaka. The Port and the adjacent Marina are situated southeast at the outskirts of the urban civic centre of Larnaka and 3,5kms from the Larnaka International Airport (southwest of the urban area). Figure 1 presents the current condition of Larnaka Port and Marina, as well as the proposed plan of the PPP Project.

The Larnaka Port and Marina Project present unique characteristics in respect to the choice to be re-developed through a Public Private Partnership (PPP), using a Design- Build- Finance- Operate (DBFO) Concession Contract. Extensive “horizontal and vertical bundling” has formulated a viable Project. The three main components of the Project, Larnaka Port, Larnaka Marina and the Land Development with the expansion of Larnaka’s waterfront area can present to the end users a prime cruise, recreation yacht, leisure and tourist destination in the Eastern Mediterranean Basin. Larnaka with its hinterland areas can provide a supreme cultural and leisure tourist package in order to attract cruise organizers operating in the Eastern Mediterranean market. The adjacent new developed Larnaka International Airport can play a vital role in supporting the vision to convert Larnaka’s Port into the main Cruise/ passenger Port of Cyprus. In addition, the steady growth in the cruise industry can be a promising factor for the realization of the Project. Negotiations with the preferred Bidder Zenon Consortium successfully were completed in August 2012, but the Concessionaire did not manage so far to find financial lenders (August 2014). The Government provides repeated extension of time to the Concessionaire since August 2012, recognizing the limitations due to the financial crisis and Cyprus economy recession status.

In its current condition Larnaka Port is the second in magnitude port of Cyprus, lacking behind Lemesos Port. Until 1973 it was operating occasionally with inadequate port facilities. With the exception of the oil products, the port had served up to that time very little trade traffic and its storage space was quite small and unsuitable.

In 1973 it was redeveloped and was initially intended to share with Famagusta Port its inland area and supplement the latter. Following the Turkish Invasion of 1974, Famagusta Port, the main port of Cyprus at the time, ceased operation and the role of Larnaka Port increased dramatically. Additional expansion took place in two phases (1976-1979 and 1979-1982), leading to a multipurpose port having an area of 445.000 sq. meters and serving all kinds of loads from unpacked (animal fodder, grain, gypsum), conventional (lumber, iron, fertilizers, automobiles), containers as well as oil products.

Nowadays, it’s within the urban area of Larnaka and on the landside is surrounded by residential units. On the north side there are oil product installations and at the south side it borders with Larnaka Marina.

The level of commercial operations at Larnaka Port has declined over the last two decades, with the majority of commercial traffic now being handled by Lemesos Port. In the late 1980s/ early 1990s, the freight movements were diminishing in Larnaka Port and the passenger movements have been lacking behind Lemesos Port, as the latter has significant operational capabilities and capacity. The Ministry of Communications and Works (MCW) and the Cyprus Ports Authority (CPA), since the late 1980s commissioned various studies in order to explore the possibilities of revitalizing Larnaka Port.

Larnaka Port is protected by two breakwaters the North and the South. It has two quays for the mooring of ships:

  • South quay of length 340m, water depth 11,4m and equipped with two gantry cranes of 40 tons, 1 crane on rails of 45 tons as well as a ramp of 25m width suitable for ro-ro ships.
  • North quay 326m, water depth 9,3m and equipped with crane on rails (Luffing Crane) of 35 tons able to serve loads 150m to the western part of the quay.

The Port has three warehouses, two of which are located at the north quay each having an area of 3170 sq. meters and one at the south quay of about 11.500 sq. meters. There are also paved open storage spaces of about 150.000 sq. meters as well as non-paved spaces of approximately 65.000 sq. meters. In addition, a Passenger Terminal Building serves mainly cruise traffic. Figure 2 presents the current port masterplan.


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Figure 2: Larnaka Port, Current masteplan

Larnaka Marina is situated next to the Larnaka Port, and is one of the few marinas in Cyprus and the only public owned. The Marina can serve approximately 450 yachts and for the last two decades is oversaturated. Recently small re-construction works were executed awaiting for the Concessionaire to take over.

In the late 1990s, there was a discussion of what procurement method should be used for the development of Larnaka Port. The government decided that the best method for the re-development was through a PPP contract because it was believed that this will help the easiest development without the “slow-moving” processes a governmental project has to face. In addition, burdening the national budget with a huge investment was not an option for the Government those days since the primary goal was the accession to the European Union. The decision for re-developing Larnaka Port through a PPP contract was taken in 1999.The MCW launched the procurement process for the original Project in September 2001 with a tender for DBFO-style Concession Contract exclusively for the re-development and operation of Larnaka Port. The initial procurement process resulted in the pre-qualification of two Bidders (A. Vouros Investments/ Singapore Cruise Center, Amsterdam Port Consultants), on 24 August 2004. A separate process for the re-development of Larnaka Marina was running in those days by the Ministry of Commerce, Industry and Tourism based on a revised Strategy for Tourism. This strategy included the development of several marinas around the shores of Cyprus through PPP Projects.

The same period MCW having assessed the viability of Project and discussed it with possible investors, proposed to the stakeholders a joined re-development of Larnaka Port and the adjacent Marina in a combined PPP contract. The Council of Ministers verified the proposal in April 2005 and set a Steering Committee for PPP Projects. The Council of Ministers commissioned the Steering Committee to monitor the tender documentation/ procedure. The Committee was chaired by the MCW and participants in the Committee were representatives by the Ministry of Finance, the Ministry of Commerce, Industry and Tourism, the CPA, the Public Works Department, the Planning Bureau and the General Accountant.

The tender procedure initiated by the MCW was based on an open call which led to prequalification- short listing, invitation to tender and negotiations with the preferred Bidder. In 2005 a Contract Notice in the Official Journal of the European Union for express of interest initiated the pre-qualification procedure under the title: Larnaka Port and Marina Re-Development Project. After legal implications the Tender Board name A. Vouros Investments Ltd and Partners as the Preferred Bidder. After several months, the negotiations failed due to a revised proposal that was altering the scoring which led to the preferred Bidder. The Steering Committee invited the second selected Bidder according to the tender rules, which was the Zenon Consortium.

The PPP Project consists of three main components: the re-development of Larnaka Port in order to become the main passenger port (cruises) of Cyprus, the re-development of Larnaka Marina as part of Cyprus Tourism Strategy to enhance the tourism ‘package’ of Cyprus and the Land Development of certain areas that are available within Larnaka Port and Marina (Figure 2). The latter will provide the necessary revenues in order to make viable investment the first two components of the Project. The Land Development will be combined with an extensive landscaping of the Larnaka waterfront, providing public access in areas within the Larnaka Port and Marina.

The Concessionaire, Zenon Consortium will carry out the re-development of the Port and the Marina in three phases and will manage the facility for a period of 35 years.

The Contract requires the Concessionaire to undertake phased development of the Port in conjunction with its cruise passenger marketing plan, sufficient to meet demand as it arises in cruise and commercial zones. The re-development on the Port will focus in providing the necessary infrastructure to accommodate large cruise ships, in order to become the main passenger port of Cyprus. Nevertheless, the Port will not abandon its ability to serve freight ships and will continue to serve the regional commercial (freight) needs of Larnaka and its hinderland to the north and east. The output specification for the port component was setting that the harbor approach shall be of such depth, width and alignment that cruise liners of the maximum size anticipated to be operating in the Eastern Mediterranean in the future are able safely to make an approach to and leave the harbor without the aid of tugs, except for maneuvering within the harbor basin, in all weather conditions and around the clock. As a minimum, the anticipated length of vessel was set to 300 meters.

The re-developed Marina is expected to serve as a key component in the overall waterfront re-development plan, enhancing the attractiveness of Larnaka as a tourism, leisure and recreation destination, both nationally and regionally. Recreational boating is a maritime leisure activity that is complementary to cruise tourism.The output specification was setting that the re-developed Marina will serve recreational powerboats and sailing yachts for safe navigational access to and egress from, well-protected waters and comfortable and secure berthing in the most extreme climatic conditions expected to occur in the vicinity of Larnaka. The re-developed marina will have a 500-berth capacity at the first phase and will later expand to 1.000 berths for serving boats with a minimum length of 10 metres. Vessels of the order of 30 meters will be capable of entering, maneuvering and berthing in the new Marina. It will also include the necessary infrastructure to support all kind of vessels and a new yacht club will be constructed.

The Land Development includes residential units, shops, offices, restaurants, hotel and conference facilities with approximately 250.000 sq. meters floor space. The residential units will be available on a 99 years lease. The other Land Development elements will be managed by the Concessionaire for a period of 35 years. The Zenon Consortium will provide to the Local Authorities (Larnaka Municipality) community service buildings which will include a theater/hall and offices. The project will also include an extensive road network with walkways and cycle track facilities, expanding the waterfront promenade of Larnaka, parking spaces for more than 1000 cars, parks and other public open spaces. The Land Development component will be an integral part of the Project in order to enhance the attractiveness of the area to cruise passengers, marina users and the general public.This component can be considered as an extensive level of horizontal “bundling”. The combination of a Marina and a Port in one Project will provide a moderate level of “vertical bundling” in transport sector. On the other hand, the neighboring main airport of Cyprus (Larnaka International Airport) could provide a significant level of “vertical bundling” in transport sector, although it is not part of the Project.

The estimated cost for the first phase of Larnaka Port and Marina redevelopment is about EUR130 M. The other two phases of the port and marina will be constructed at a further cost of EUR 55 M. The Land Development will reach an investment of EUR 600M. Figure 3 presents Larnaka Port & Marina Master Plan overview.


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Figure 3: Larnaka Port & Marina Master Plan overview

The Contracting Authority (Public Party)

All port facilities of the island are under the jurisdiction of the Cyprus Port Authority (CPA), a semi-government, public autonomous organisation supervised by Ministry of Communications and Works (MCW) and their activities and development are centrally planned, co-ordinated and supervised. Both Lemesos and Larnaka Ports, the country’s major gateways to international shipping, are owned, managed, operated, marketed and developed by CPA. The MCW is the responsible political instrument for air, maritime and land transport and for the national-wide transport infrastructure including international airports, ports and main road network. Larnaka Marina is also publically owned and it is managed by another semi-government, public autonomous organization: the Cyprus Tourism Organization (CTO), which is supervised by the Ministry of Commerce, Industry and Tourism (MCIT).

The Contracting Authority for the Project is the MCW (Central Government) and the two semi-government, public autonomous organizations participate in the Steering Committee for the negotiations of the Project. CPA and CTO will terminate their managerial duties for Larnaka Port and Marina respectively, when the Project is handed-out to the Concessionaire. The PPP contract will be managed by the Public Works Department (PWD) on behalf of the MCW.

Nevertheless, there are operational jurisdictions that will remain to Central Government mainly due to the legal/ institutional environment. The regulatory jurisdiction of CPA as well as the policing (land and sea), custom services, immigration control, food hygiene, veterinary services, meteorological services, port health services, and shipping safety and control services will remain with central government. Moreover, the CPA will remain the Land Lord for the Port.

Regarding procurement regulations, the tender procedures was based those days on the Public Tender Law (Law No. 12(I)/2006) and the relevant Regulations enacted under that Law. The Law was consistent with the relevant EU Directive 2000/18/EC, governing the award of works concessions.

Transport and tourism policy are controlled on a national level. The Project was a national necessity for promoting tourism and maritime connections with Europe. Even if Central Government is responsible on all levels of the development, design, tendering, negotiation procedure and regulating the contract, Larnaka’s local authorities play a significant role in promoting and accelerating the Project by lobbying and exercising pressure on the Central Government.

The Concessionaire (Private Party)

Zenon Consortium, the Concessionaire is an International & Cypriot-led Consortium established as the SPV (Special Purpose Vehicle) for undertaking the DBFO Concession Contract for the Larnaka Port and Marina Re-Development Project.

Zenon Consortium was established with the following shareholders (and respective share):

  • Louis Group of Companies- 22% (Cruise-ships & Hotels Owners & Operators),
  • Bouygues Batiment International- 17,5% (French-led international developer and contractor),
  • Iacovou Brothers- 17,5% (Largest Main Contractor in Cyprus, Larnaka based),
  • Petrolina (Holdings) Public Ltd- 17,5% (Leading gas and oil products distributor in Cyprus, Larnaka based),
  • Costa Crociere SpA- 10% (Largest Cruise Company in the Mediterranean and member of the U.S. Carnival Cruise Lines Group),
  • Marinaman - 8,5% (Representing the local community of Larnaka),
  • General Construction Company- 5% (Cypriot Contractor, Nicosia based),
  • Amsterdam Logistics Group Ltd (Netherlands, Cruise and Commercial Port operations) & Lievense Consulting Engineers- 2% (Port & Marina design).

The majority of companies setting Zenon Consortium are business developers with a balanced participation in two main fields: the construction field (Bouygues Batiment International, Iacovou Brothers and General Construction Company) and in port and marina development field including cruise organization (Amsterdam Logistics, Lievense Consulting Engineers, Costa Crociere and Louis Group of Companies). In addition the participation of Cypriot and international partners can also be considered as balanced. One of the leading companies, Bouygues Batiment International has an extensive experience in PPP’s. It should be noted that Bouygues Batiment International is also the leading company in the Concession Contract for developing and managing the two International Airports in Cyprus (Larnaka and Paphos) until 2031. Alterations are expected in the list of shareholders with their respective shares before the Financial Close for the Project.

Zenon Consortium has selected Scott Brownrigg Architects and Masterplanners as their designing consultants.

According to the procurement documents, all subcontractors shall be approved by the Government. For the construction and maintenance, it is expected that Bouygues Batiment International, Iacovou Brothers Ltd and General Construction Company will be involved. The other shareholders are expected to be involved in operational subcontracting duties.

The Financial Close for the Project is still pending (August 2014) due to the fact that Zenon has not managed so far to acquire the necessary financial resources from lenders or other possible investors.

Users

As it was mentioned before, Larnaka Port and Marina Project is presenting unique characteristics due to its extensive “horizontal and vertical bundling”. The three main components of the Project, Larnaka Port, Larnaka Marina and the Land Development with the expansion of Larnaka’s waterfront area can present to the end users a prime cruise, recreation yacht, leisure and tourist destination in the Eastern Mediterranean Basin.

Taking into account the project bundles, three main user categories can be identified:

  • Cruise operators processing passengers, as well as commercial companies handling commodities through the Port will be the main users. According to the output specification for the port component, the harbor approach shall be of such depth, width and alignment that cruise liners of the maximum size anticipated to be operating in the Eastern Mediterranean in the future are able safely approach and leave the harbor without the aid of tugs, except for maneuvering within the harbor basin, in all weather conditions and around the clock. As a minimum, the anticipated length of vessel was set to 300 meters. The basin and alongside the quays shall have sufficient depth (minimum, 11 meters) to allow safe use of the harbor and port installations by cruise liners, of the maximum anticipated size and commercial vessels serving the current and future export and import needs of the hinterland of Larnaka. The re-developed port is expected to provide a maneuvering area equivalent to a turning circle of 500 meters in diameter. In this respect, the re-construction of the Port infrastructure will include a new passenger terminal (first phase 3500 sq. meters), a new passenger pier and an offshore jetty.
  • Tourists using the Marina for recreation-short trips around Cyprus and the Eastern Mediterranean Basin. The re-developed Marina will serve recreational powerboats and sailing yachts for safe navigational access to and egress from, well-protected waters and comfortable and secure berthing in the most extreme weather conditions expected to occur in the vicinity of Larnaka. The re-developed marina will have a 500-berth capacity in the first phase and will later expand to 1.000 berths for serving boats with a minimum length of 10 metres. Vessels of the order of 30 meters will be capable of entering, maneuvering and berthing in the new Marina. It will also include the necessary infrastructure to support all kinds of vessels and a new yacht club will be constructed.
  • Residents that will buy residential units through a 99 year lease and the companies using the services provided in the Land Development component (conference, theater/ Hall, offices, retail shops, food & beverage, entertainment) is another major category of users. Land development is the third main component of the project. The Land Development includes residential units, shops, offices, restaurants, hotel and conference facilities with approximately 250.000 sq. meters floor space. - Throughout the project, the Consortium will provide to the Local Authorities (Larnaka Municipality) community service buildings, which will include a theater/hall and offices. The project will also include an extensive road network with walkways and cycle track facilities, expanding the waterfront promenade of Larnaka, parking spaces for more than 1000 cars, parks and other public open spaces. Local authorities and local habitants will also use and have benefits from the project.

Key Purpose for PPP Model Selection

Currently, the development of the transport infrastructure of Cyprus through PPP Projects is considered to be unattractive, particularly the road infrastructure. Small peripheral EU Member States have difficulties in attracting private investors in TEN-T projects, because the cost of the investment is usually equivalent to that of a similar project in a central interconnected Member State, while the rate of return for the investment is significantly reduced due to the lower usage of the developed infrastructure of the project.

The Larnaka Port & Marina Project combined three major economic fields of economy: tourism, international transport and real estate whereas value for money, technical efficiency, postponing costs, acceleration of works, short-term decrease of governmental debt and risk transfer were the main political motivations for the choice of the contract type. Additionally, the Government’s political decision to dis-engage from managing port and marina services was also considered as a prime reasoning behind the contract type selection.

Project Timing

The accession of Republic of Cyprus to the European Union in 2004, followed by the accession to the Eurozone Area in 2008 has been a catalyst for crucial changes in the political, economic and social environment of Cyprus. The need to enhance the competiveness was becoming paramount important for the sustainability of Cyprus economy. The Larnaka Port & Marina Project was combining three major economic fields of Cyprus economy: tourism, international transport and real estate.

The level of commercial operations at Larnaka Port has declined since the late 1980s/ early 1990s, with the majority of commercial traffic now being handled at Lemesos Port. Since then, the MCW and the CPA were exploring various options for revitalizing Larnaka Port. In addition, Larnaka Marina was over-saturated and there was an urgent need to expand its capacity.

By the late 1990s, desalination plants were developed in Cyprus as PPP’s, introducing this method as a sustainable method for project developing. In those days the MCW decided to explore the development of two main transport infrastructure Projects through PPP Contracts: Larnaka and Paphos International Airports in a combined contract and the re-development of Larnaka Port. The decrease of governmental debt and the acceleration of works were the main reasoning for the PPP choice. The non viability of the Larnaka Port Project led to add within the Project the re-development of Larnaka Marina in a combined Project with considerable land development benefits. The realization of almost 250.000 sq. meters of land development was expected to provide funds from which the Larnaka Port and Marina will be re-developed.

The final decision for re-developing Larnaka Port through a PPP contract was taken in 1999. The MCW launched the procurement process for the original Project in September 2001 with a tender for DBFO Concession Contract exclusively for the re-development and operation of Larnaka Port. The initial procurement process resulted in the pre-qualification of two Bidders (A. Vouros Investments/ Singapore Cruise Center and Amsterdam Port Consultants), on August 2004. At the same period a separate process for the re-development of Larnaka Marina was due by the MCIT based on a revised Strategy for Tourism. This strategy included the development of several marinas around the shores of Cyprus through PPP Projects.

A few months later, MCW having assessed the viability of Project and discussed it with possible investors, proposed to the stakeholders a joined re-development of Larnaka Port and the adjacent Marina in a combined PPP contract. The Council of Ministers of Government of Cyprus verified the proposal in April 2005 and set a Steering Committee for PPP Projects. The Council commissioned the Steering Committee to monitor the tender documentation/ procedure. The Committee was chaired by the MCW and participants in the Committee were representatives by the Ministry of Finance, the MCIT, the CPA, the PWD, the Planning Bureau and the General Accountant.

The delays during the formulation of the Project, the tendering process and the negotiating period with the preferred bidder delayed the agreement until August 2012. The financial crisis had already reached Cyprus. Cyprus Government requested international financial assistance in June 2012 due to the financial crisis that primarily occurred in the over expanded domestic banking sector, which Cyprus was unable to support on its own. In March 2013, a EUR 10 billion international bailout by the Eurogroup, European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF) was announced, in return for Cyprus agreeing to close the country's second-largest bank and imposing a one-time bank deposit levy on all uninsured deposits (bail in) in the two main banks of Cyprus.

The Government provides repeated extension of time to the Concessionaire since August 2012, recognizing the limitations due to the financial crisis and Cyprus economy recession status.To this end, the preferred bidder is struggling since August 2012 to secure the necessary funding for the realization of the Project.

Project Locality and Market Geography

The special territorial and geographical features of Cyprus play a restrictive role in the improvement of Cyprus’ competitiveness: its very small size combined with its insular character combined with its distant geographical position from the EU’s centre of activity result in a significant increase in the costs for the transportation of goods and services, as well as isolation problems and weakness in the connection to the main Trans-European Network routes. In order for these issues to be addressed, significant investment is required in basic and other supporting infrastructure. Larnaka Port belongs to the Comprehensive TEN-T Network whereas Larnaka Marina is not part of the TEN-T Network. The Connecting Europe Facility CEF Regulation has given priority in the development of the TEN-T Core Network and other horizontal issues (telematic applications etc). Only 5% of the CEF financial envelope will be directed to the TEN-T Comprehensive Network. Under the new TEN-T policy, Larnaka Port is not to be supported by EU financial resources.

Larnaka Port and Marina are at the outskirts of the Larnaka civic centre. Both infrastructure facilities will support the passenger movements of Cyprus with the rest of the world- cross border movements. The third element of the Project, the Land Development within Larnaka Port and Marina will be combined with extensive landscaping of Larnaka’s waterfront area, hence expanding the civic centre of the city towards the Port area.

Larnaka Port operations, mainly cargo/ bulk products have been declining steadily since the late 1980s/ early 1990s. Vessel traffic (mainly freight) has been declining since the late 1980s. The container movements have never been worth mentioning. The passenger movements in the last decade cannot be considered significant. The Port has been lacking behind Lemesos Port since 1973 in respect of operational capacity. The majority of commercial and passenger traffic is being handled by Lemesos Port; Larnaka Port passenger traffic for the period 2006-2013 represents only 10,7% of the aggregated traffic of the two main Ports of Cyprus. Figure 4, presents Larnaka Port traffic for the last 3 decades.

Year Passenger Traffic Vessels Traffic

(No. ships)

Freight Transport

(TEU)

2013 54.420 188 713.952
2012 44.055 206 740.551
2011 42.987 534 801.521
2010 64.907 578 901.919
2009 22.761 522 858.514
2008 5.091 596 1.077.000
2007 6.154 640 870.000
2006 57.162 818 818.000
2004 712 1.855.657
2002 766 2.087.192
2000 888 2.166.713
1995 1.223 2.804.871
1990 1.444 2.541.236
1984 1.803 2.069.438

Figure 4: Larnaka Port traffic

This issue raises doubts in respect of the ultimate goal of the Project to convert Larnaka Port into the main cruise/ passenger Port of Cyprus. In addition, CPA after many years of discussions is constructing (2014) a new passenger terminal building in Lemesos Port (total investment EUR 14,5 M). The new passenger terminal building in Lemesos Port will be about two times the size proposed for Larnaka Port. Furthermore, the delays occurred so far and the uncertainties in developing Larnaka Port and Marina attracts hydrocarbon development and servicing companies for using Larnaka Port as a base for the exploitation of hydrocarbons in Eastern Mediterranean Basin. The MCW has provided a two year license to hydrocarbon development and serving companies to use Larnaka Port’s facilities including development of a mud plant for servicing hydrocarbon drilling needs. Local Authorities expressed their concerns that the MCW is abandoning the goal to convert Larnaka Port into the main cruise/ passenger Port and instead is giving emphasis to its industrial role.

However, the global cruise industry has an annual passenger growth rate of 7% from 1990 – 2018 (2013: almost 21 M passengers). Growth strategies have been focused in providing new larger capacity ships, including more local ports destinations and new on-board/on-shore activities that match demands of consumers. The increasing size of ships leads to the need of infrastructure upgrade and expansion. Mediterranean is the world's second largest cruise shipping market, representing over 23% of the annual cruise capacity. Mediterranean market can be broken down into four regions; Western Mediterranean, Eastern Mediterranean, South Mediterranean and Adriatic. Eastern Mediterranean market lacks behind Western Mediterranean and Adriatic market, markets that are in a more advantageous position, since they are more close to passenger’s origin countries. Having in mind this, a crucial issue for further developing Eastern Mediterranean market is the provision of adequate air transport capacity.

The adjacent new developed Larnaka International Airport can serve adequately Larnaka Port to its ultimate goal in becoming a prime cruise operations destination. In addition, the steady growth in the cruise industry can be a promising factor for the realization of the Project. Larnaka with its hinterland areas can provide a supreme cultural and leisure tourist package in order to attract cruise organizers operating in the Eastern Mediterranean market.

Procurement & Contractual Structure

The tender procedure initiated by the MCW was based on an open call, which led to prequalification- short listing, invitation to tender and negotiations with the preferred Bidder.

In respect to procurement regulations, the tender procedures was based those days on the Public Tender Law (Law No. 12(I)/2006) and the relevant Regulations enacted under that Law. The Law was consistent with the relevant EU Directive 2000/18/EC, governing the award of works concessions.

The MCW is supported by PricewaterhouseCoopers (financial consultants), Pinsent Masons (Legal consultants), WSP Group (Technical consultants) in preparing the tender documents, assessing the Bidders and in the negotiation process with the successful Bidder.

Tendering

On October 2005, a Contract Notice in the Official Journal of the European Union for express of interest initiated the prequalification procedure under the title: Larnaka Port and Marina Re-Development Project. The Notice was accompanied by an international printed media campaign, with advertisements for the Project appearing in a number of international publications. The Contract Notice and the advertisements invited parties to register their interest in the Project to the MCW and receive the prequalification documents, being the Preliminary Information Memorandum and the accompanying Pre-qualification Questionnaire (PQQ). Three consortia expressed their interest for the project on December 2005. In May 2006, all three Bidders were pre-qualified and shortlisted. The short-list of the Bidders was based on the answers on the PQQ and on the criteria for the pre-qualification evaluation. Subsequently, MCW held a Bidder’s Conference in Lefkosia on January 2007, at which Bidders were invited to present their queries relating to the Project in an open forum. The MCW issued the Invitation to Tender (ITT) on November 2006 and the shortlisted Bidders were invited to submit their proposal.

All three consortia accepted the ITT and submitted their proposals to the Tender Board on July 2007:

  • Vouros Investments Ltd and Partners (A. Vouros Investments Ltd, Singapore Cruise Center Pte, Ltd, DP Architects Pte Ltd, Joannou & Paraskevaides Ltd, J & P Avax S.A., Joannou & Paraskevaides (Overseas) Ltd, Ariadne Australia Limited, Cybarco Plc.).
  • Zenon Consortium (Bouygues Batiment International, Iacovou Borthers, Amsterdam Logistics Group BV., Lievense Consulting Engineers, Louis Public Company Ltd, Petrolina (Holdings) Public Ltd, Marinaman Ltd, Costa Crociere SpA, General Construction Ltd).
  • D.J. Karapatakis & Sons Limited (D.J. Karapatakis & Sons Ltd, Camper & Nicholsons Marinas Ltd, Wimberly Allison Tong & Goo Inc., ERA Economics Research Associates, Spanopoulos Group of Companies, Odell International Inc USA in a Joint Venture with Parsons, G.A.P Vasilopoulos Public Limited, A. Panayides Contracting Public Limited, Sigan Management Ltd, Viset Malta Plc).

Each of the Bids received comprised five separate volumes as described in the ITT: (i) Executive Summary, (ii) Volume A: Technical & Operational, (iii) Volume B: Business Plan, (iv) Volume C: Legal and (v) Volume D Financial.

The MCW and the supporting Consultants evaluated originally Volumes A, B and C and following due to ratification by the Tender Board, the Volumes Ds of those Bidders who have satisfied the threshold requirement of 50% score in each of the three evaluation areas: (i) Technical & Operational (30% of total scoring, criteria on port development plan, on marina development plan, on method statements, on land development plan, on land development policy and method statements) , (ii) Business Plan & Legal (20% of total scoring, criteria on business plan- port & marina, on business plan- land development, on assessment of amendments to draft contract) , and (iii) Project Concept (15% of total scoring). (iv) Then the Volumes Ds were opened and assessed on two main evaluation aspects: (a) Financial I: Expected Bid price to the Government (30% of total scoring), (b) Financial II: Financial robustness and deliverability (5% of total scoring).

The ITT was stating that the Contract will be awarded to the most economically advantageous Bid and this is reflected by the evaluation and scoring distribution.

In July 2008 Zenon Consortium was selected as the preferred Bidder whereas A. Vouros Investments Ltd and Partners was scored in evaluation procedure as the second best with small margin from the preferred Bidder. D.J. Karapatakis & Sons Limited was excluded by the procedure due to failure to provide original documentation. The selection of the preferred bidder led to legal implications since the other two Bidders legally challenged the decision of the Tender Board, adding further delays to a much needed project. The Tender Review Board dismissed the original decision to name Zenon Consortium as the preferred Bidder. Based on that decision, the Tender Board revised its decision and name A. Vouros Investments Ltd and Partners as the preferred Bidder and Zenon Consortium as the second one.

A new Steering Committee was set for the negotiations with the selected preferred Bidder. The Committee was chaired by the Directorate General for European Programmes, Coordination and Development (ex-Planning Bureau) and participants in the Committee are representatives of the Ministry of Finance, the MCW, the CPA, the PWD and the Control Department of MCW. The Steering Committee invited the preferred Bidder for negotiations in May 2009, almost 4 and a half years after the political decision to proceed with this Project. Cyprus was already feeling the pressure of the international financial crisis. This led A. Vouros Investments Ltd and Partners to re-assess their Business Plan and present a revised financial proposal. The Steering Committee dismissed the proposal and decided to terminate the negotiations; the revised proposal was altering the scoring that led to the preferred Bidder.

In July 2010 the Steering Committee invited the second best Bidder according to the tender rules, which was Zenon Consortium. Negotiations with Zenon Consortium were successfully completed in August 2012.

Contract Structure

The Project will be undertaken using a DBFO Concession Contract. An output specification, with minimum requirements, was created that includes the way the three components of the Project (Larnaka Port, Larnaka Marina and Land Development) are going to be developed and operated.

The Concessionaire is the sole responsible for designing, financing, building and maintaining Larnaka Port and Marina Project. In addition, the Concessionaire has the main responsibility in operating the project (Larnaka Port, Marina and development). The Project will be transferred from the Concessionaire to the Government when the contract is completed in 35 years. All the residential part of the Land Development will be transferred in 99 years. The Government, through its respective agencies will provide specific services mainly due to the legal/ institutional environment. The Cyprus Government will retain the ownership of all existing and new Port and Marina assets during the Concession period. The Agreement is governed by the Law of the Republic of Cyprus.

In relation to the Port, the Contract will require the Concessionaire to undertake phased development in conjunction with its cruise passenger marketing plan, sufficient to meet demand as it arises in cruise (passenger) and freight operations. The Marina component will serve as a key part in the overall waterfront re-development plan, enhancing the attractiveness of Larnaka as tourism, leisure and recreation destination. The re-development of Larnaka’s Marina as a key maritime leisure node in Cyprus will act complementary to cruise tourism. The management, operation and maintenance of the Port and the Marina will be in accordance to the relevant Laws of the Republic of Cyprus and industry’s best practice. Specific performance indicators will monitor the Concessionaire. The Output Specification for the Land Development component was set in a manner to allow each prospective Bidder to determine the form of development that is most appropriate and complementary to the activities of the Port and the Marina, according to his aspirations and commercial judgment. Approximately 283.00 sq. meters of land within the boundaries of the Port and the Marina will be handled out to the Concessionaire for developing in order to maximize the revenues to fund the re-development of the Larnaka Port and Marina. The Government has set minimum requirements based on Cyprus Urban Development and Building Regulations.

The Concessionaire will be responsible for the overall operation and management of all aspects of the business of Port and Marina. In this respect, the Concessionaire will produce and operate the following specific Method Statements:

  • Operating Procedures for all its service delivery responsibilities and the establishment of a Quality Management System and Plan.
  • Health and Safety Plan.
  • Security Plan.
  • Chemical and Oil Spill Anti-Pollution Plan
  • Emergency Plan.
  • Conservation and Heritage Management.
  • Environment Plan.

Based on the contract clauses, the charges in the Port will be either regulated or non-regulated. All the charges for core port services will remain regulated whereas the development of other new marinas in Cyprus will lead to deregulation of all relative charges.

Termination clauses are included in the contract and are divided in three categories (Concessionaire default, Government default and force majeure). There are guarantees that the Concessionaire is compensated as follows:

  • Concessionaire default- No compensation.
  • Force majeure- Compensation on various cost elements (e.g. Senior Debt Termination Amount, Junior Debt, redundancy payments for employees, subcontractor breakage costs).
  • Government default- Compensation on various cost elements (e.g. Senior Debt Termination Amount, Junior Debt, redundancy payments for employees, subcontractor breakage costs).

The revenues of the contract arise from the three components of the Project: Larnaka Port, Larnaka Marina and Land Development. These revenues primarily arise from land right fees, development fees, charges from commercial and passenger use of the Port and the Marina and the Concessionaire will collect all the revenues. In consideration of the rights granted by the Cyprus Government to the Concessionaire under the provisions of the Concession Contract, the Concessionaire will pay the Government the Concession Fee. The Concession Fee represents the land development revenues multiplied by the Government’s Percentage. In addition, a Guaranteed Concession Fee has been set representing an aggregate amount of EUR 61.1 M in net present value terms discounted back to the commencement date of the Contract.

At every milestone date, the Concessionaire should pay the relevant fee. The Guaranteed Concession Fee and the Aggregate Concession Fee, which is calculated, are taken into consideration; in case the Aggregate Concession Fee is less than the Guaranteed Concession Fee, the Concessionaire will propose a Guaranteed Concession Fee Shortfall Plan in order to pay the pending amount. The Government’s Percentage means 50% for the period the Contact commences until the date the aggregate amount of the Guaranteed Concession Fee is paid. Whenever the aggregate amount of the Guaranteed Concession Fee is paid, then a certain formula is applicable, setting the Government’s Percentage. In addition, the Cyprus Government participates in profit sharing arrangement, if the actual Equity IRR exceeds 12,5% in real post terms.

A Liaison Committee exists, formulated by three representatives on behalf of the Contracting Authority and three representatives on behalf of the Concessionaire. This Committee is responsible for the day by day review of the Contract. The Committee forms also a forum for strategic discussion on variations of the market orientation as well as for the efficient operation of the Project. The Liaison Committee can be the forum for contract re-negotiation.

In case of any disputes between the Government (Contracting Authority) and the Concessionaire, the Contract sets specific resolution procedures. In case the disputes are not resolved through prompt, good faith discussion, a Fast Track Dispute Resolution Procedure is followed. The Fast Track Dispute Resolution Procedure is handled out by a three member Panel (one member designated by the Contracting Authority, one by the Concessionaire and the third participant/chairman is selected by the other two members of the Panel). The Panel acts as impartial and it may reach to binding decisions. In case all the above procedures failed, an Arbitration procedure is followed and the award of the Arbitral Tribunal is final and binding.

The whole Agreement is governed by the Law of the Republic of Cyprus.

Risk Allocation

The risks are allocated in a balance way between the Concessionaire and the Contracting Authority (Government). The allocation is based on the principal: the risk is allocated to whom it can deal with it. Figure 5 presents an overview of the risk allocation.

Larnacarisk.png
Figure 5: Risk allocation

Design and construction risks are totally allocated to the private sector. If there is a problem, the Concessionaire will have certain penalties (delay fees). These risks however are thought to be the most easily regulated and measured. Maintenance risks are also totally allocated to the private sector. For these two risks the Government will measure the performance and if problems arise the Concessionaire will have certain penalties (performance and delays).

Risks of exploitation are allocated mostly to the private sector (poor operating performance, increase of operating/ maintenance costs etc). Some risks are allocated to the public sector (failure of governmental agencies to provide their services). The demand risk will be shared from both parties but the risk is greater for the private sector. The Concessionaire will have to pay the Government, as a “rent” for the exploitation of the governments’ assets, fees. The financial risks during construction and operation are allocated mostly to the private sector. Some risks are allocated to the public sector in case of a decision for expanding the infrastructure.

The regulatory risks (changes in Law), which can be considered discriminatory under the Concession Contract are assumed on a greater level by the Government. In that case, the Concessionaire may present its case and ask for compensation. The force majeure risk will be shared by both parties (war, revolution, nuclear explosion, etc), but the risk is greater for the public sector. The Concessionaire is compensated by the Government sufficiently in case the Contract is terminated.

Financial close risk has eventuated. For the last 2.5 years the concessionaire and the government are trying to find solutions.

Performance

The Contracting Authority requires that Larnaka Port and Marina under the Concession Contract are operated in accordance with the Law and Regulation of Cyprus, EU Law, Regulation and Policies and international standards for maritime affairs as regulated by the International Maritime Organization (IMO). Consistently poor performance will lead to performance deductions and failure to rectify such performance will lead to penalties or termination of the Contract.

The performance mechanism will combine specific performance/quality indicators, as measured against the Concessionaire’s own Method Statements. It will be self-monitoring from the Concessionaire’s performance monitoring system and designed to encourage the Concessionaire to improve its methods of operation. The Contracting Authority will conduct audits periodically.

After selection of the preferred bidder and prior to financial close, the Concessionaire will be required to submit Method Statements, defining how it will implement each aspect of the Project requirements. The Contracting Authority may consider changes to the Measures of Performance where the Concessionaire will be able to demonstrate that alternative measures are more appropriate. The Concessionaire will be able to change the Method Statements and the performance indicators during the concession period again with the prior approval of the Government.

In order to encourage continuous improvement, penalties will be levied on failure to perform according to a Method Statement, failure of the quality management system and failure to report any shortfall in performance. Penalty points will be levied according to the nature and severity of the failure.

The Contract includes deficiency points and penalties for underperformance in the pre-identified performance indicators. The Contracting Authority assesses this underperformance and levies points/ penalties to the Concessionaire.

The Indicators are according to the component of the Project: Port, Marina or both Port & Marina. Analytically, seventeen Indicators are included in the Contract and presented below with the associated penalty points:

  • Port vessels berth processing- Waiting time for berth in excess of 30 minutes except in weather conditions exceeding the design parameters of the port. Points are deducted for each occurrence. 250 Penalty Points.
  • Port passenger check-in counters- Less than 85 percent of check-in counters for processing passengers are fully functional. The Concessionaire should prepare a Rectification Plan within three days. The Rectification should be completed with ten days unless otherwise agreed. 100 Penalty Points.
  • Port Security Check Equipment-Security checking equipment is fully functional for less than 90 percent of the time. The Concessionaire should prepare a Rectification Plan within three days. The Rectification should be completed with ten days unless otherwise agreed. 100 Penalty Points.
  • Port Immigration booths- Less than 85 percent of immigration booths for processing passengers are fully functional. The Concessionaire should prepare a Rectification Plan within three days. The Rectification should be completed with ten days unless otherwise agreed. 100 Penalty Points.
  • Port Baggage handling- Baggage handling equipment is fully functional for less than 90 percent of the time. The Concessionaire should prepare a Rectification Plan within three days. The Rectification should be completed with ten days unless otherwise agreed. 100 Penalty Points.
  • Marina vessels berth processing (peak period)- Time to allocate a berth in excess of 30 minutes at peak periods provided that there are unoccupied berths. Points are deducted for each occurrence. 100 Penalty Points.
  • Marina vessels berth processing (off peak period)- Time to allocate a berth in excess of 20 minutes at other times provided that there are unoccupied berths. Points are deducted for each occurrence. 100 Penalty Points.
  • Marina facilities/ services- Less than 90 percent of any set of facilities (toilet, washing showering or berth services) available at any time. The Concessionaire should prepare a Rectification Plan within three days. The Rectification should be completed with ten days unless otherwise agreed. 250 Penalty Points.
  • Marina pump out services- Waiting time for pump out in excess of 30 minutes during normal operating hours. If the event can be rectified through management action, the rectification period is set to one month. If upgrading of facilities is required, the upgrade plans should be available within three months. Criterion re-applied after completion of upgrade. 100 Penalty Points.
  • Marina fuel services- Waiting time for fuel in excess of 10 minutes during normal operating hours. If the event can be rectified through management action, the rectification period is set to one month. If upgrading of facilities is required, the upgrade plans should be available within three months. Criterion re-applied after completion of upgrade. 100 Penalty Points.
  • Marina security- More than 5 incidents of malicious damage or theft in any month. Points are deducted for each occurrence. 100 Penalty Points.
  • Port & Marina response to emergency situation- Response time to an emergency situation in excess of 15 minutes. Points are deducted for each occurrence. 500 Penalty Points.
  • Port & Marina clear or deal to emergency situation- Time to clear or deal with an emergency situation in excess of 12 hours (which may be adjusted by agreement or instruction). Points are deducted for each occurrence. 500 Penalty Points.
  • Port & Marina health and safety- Any failure to follow health and safety requirements. Points are deducted for each occurrence. 500 Penalty Points.
  • Port & Marina navigation- Any failure to provide effective aids to navigation. Points are deducted for each occurrence. 500 Penalty Points.
  • Port & Marina Method Statements- Failure to follow agreed procedures as set out in the Concessionaire’s Method Statements. Points are deducted for each occurrence. 500 Penalty Points.
  • Port & Marina Quality Management System- Failure to maintain the agreed Quality Management System. Points are deducted for each occurrence. 500 Penalty Points.

The penalties are applied based on the aggregated points levied in a specific time frame as follows:

  • Less than 500 in any month: No penalty.
  • 500 to 1.500 points in any month: 0.25% of the Concession Fee of the specific month the points are levied.
  • More than 1.500 points per month: 0.5% of the Concession Fee of the specific month the points are levied.
  • More than 2.500 points in any rolling three months: 1% of the Concession Fee of the specific three month period the points are levied.

A score of 10.000 or more penalty points in a rolling six month period will lead to award of a termination point. The Concession Contract will be terminated if three termination points are awarded in any rolling three year period.

Project Outcomes

The re-development of Larnaka Port and Marina will transform this area into a major cruise passenger and tourist destination. In one hand, the level of commercial operations at Larnaka Port were declining over the years and on the other hand the Larnaka Marina was over-saturated. Both infrastructure developments were facing sustainability issues. The Project is expected to assist significantly the tourist industry of Cyprus and transform Larnaka into a prime tourist destination in the Eastern Mediterranean Basin. In addition, it is expected that the Project will support the re-vitalization and the competitiveness of Cyprus economy.

In order to secure viability, 3 separate projects were bundled in a combined development.

The project, while still not abandoned, 2.5 years from the award has not managed to reach financial close.Reasons may be: 1. the mix of shareholders within the concessionaire 2. the economic crisis

The following critical success factors can be considered:

  • Basically, the revenue growth of the Project depends on the income earned from the Land Development component of the Project. In that respect, the medium and long term prospects of Cyprus economy are crucial for attracting possible high income residents in the Project. The other two components of the Project (Port and Marina) are expected to provide the necessary revenues in order to be self-sufficient. It is of paramount importance that the Project as a whole gains a Brand Name as a prime cruise, yacht and tourist destination in the Eastern Mediterranean Basin.

Nevertheless, the Concessionaire should seek out the provision of new innovative services, hence new forms of revenues and the Cyprus Government should assist the Zenon Consortium towards this direction.

  • The long term sustainability of the Port and the level of success of the Project depend on the growth of the Cruise passenger and marina traffic. Nevertheless, the economic viability of the Project depends mainly on the revenues expected by the Land Development component of the Project.
  • Maritime transport as a whole should provide high health and safety standards. Even small events can ruin the good image of a port. It is important that the Concessionaire, the Cyprus Government with the relevant Agencies maintain excellent cooperation. The Cruise operators are significant partners too.
  • Maritime transport as a whole should provide high security standards. Terrorism and other relevant events have a global effect. Even small events can ruin the good image of a port. It is important that the Concessionaire, the Cyprus Government with the relevant Agencies maintain excellent cooperation.
  • Maintenance needs will increase by the time and the Concessionaire should dedicate sufficient resources. The maintenance should be kept in high levels in order to provide the predefined performance standards.
  • Cooperation between the Concessionaire and the Government (Contracting Authority0 should be in the highest possible level. PPPs succeed when the partnership becomes a reality. The cooperation was identified in other factors too, but it should also stand alone.

Regarding failure factors, in 2012, Cyprus was affected by the Eurozone financial and banking crisis. In June 2012, the Cyprus Government applied for economic assistance (bail out) from the European Union and the International Monetary Fund (IMF). In April 2013, the Cyprus Government reached to an agreement with its lenders. The status of the Cyprus economy and the sustained recession that is expected are factors that could create increase uncertainty for the Project. The Financial Closure for the Project is still pending (August 2014) due to the fact that Zenon has not managed so far to acquire the necessary financial resources from lenders or other possible investors.

Only recently (March 2015), there has been opposition, as Larnaca Port employees are against the government’s proposition to allow the concessionaire to start works based on equity (50 million euros) and look for financing in the future, as this bears the risk of very small investments, while ownership transfer would have been concluded.

Economic Impact

The project is expected to provide the basis for business development with respect to cruise and recreational marine traffic. The project also foresees co-development of the area between the port and airport of Larnaca.Larnaka and Marina Project is presenting unique characteristics in respect to the choice to be developed through a Public Private Partnership (PPP), using a Design- Build- Finance- Operate (DBFO) concession contract. The extensive “horizontal and vertical bundling’’ has formulated a viable Project. The three main components of the Project, Larnaka Port, Larnaka Marina and the Land Development with the expansion of Larnaka ’ s waterfront area can present to the end users a prime cruise, recreation yacht, leisure and tourist destination in the Eastern Mediterranean Basin. Larnaka with its hinterland areas can provide a supreme cultural and leisure tourist package in order to attract cruise organizers operating in the Eastern Mediterranean market. The adjacent new developed Larnaka International Airport can play a vital role in supporting the vision to convert Larnaka ’ s Port into the main Cruise/ passenger Port of Cyprus. In addition, the steady growth in the cruise industry can be a promising factor for the realization of the Project.

The delays occurred during the formulation of the Project, the tender process and negotiations with the preferred Bidders led to an agreement when Cyprus was already affected by the financial crisis and a deep recession hit the Cyprus economy. The Zenon Consortium under this financial environment is struggling to find lenders or other possible investors, hence reaching to financial close with the Cyprus Government. The Cyprus economy presented so far remarkable resistance in “Armageddon scenarios’’. The extensive land development rights included in the Project are expected to attract new lenders and investors.

Nevertheless, the Project is expected to face competition in all of its main components. The investments in Lemesos Port in a new passenger terminal building, twice as big as to what is proposed in Larnaca, raises questions with regard to whether Larnaka could become the main Passenger Port of Cyprus. In that respect, the Zenon Consortium should investigate the provision of innovative new services in order to expand Project revenues’ diversity. In addition, the commercial capacity of Larnaka Port should be sustained. A new maritime market is arising in the Eastern Mediterranean Basin, the support of hydrocarbon exploitation companies and Larnaca has already attracted relevant servicing companies.

The long term sustainability of the Project depends on whether the Zenon Consortium and all the other stakeholders manage to convert the Project into a Brand Tourist and Leisure Name in the Eastern Mediterranean Basin.

Social Impact

The development of the water front area of Larnaca places the foundation for further development and business opportunities in the region.

Environmental Impact

The organised co-development secures the protection of the environment.

References

  • Government of the Republic of Cyprus. 2006. Larnaka Port & Marina Re-development Project, Invitation to Tender (ITT). Lefkosia: Government of Cyprus.
  • Christodoulou Ch., Efstathiades Ch.. 2013. Cyprus, Discussion Papers Part I Country Profiles. Public Private Partnerships in Transport: Trends & Theory P3T3. Brussels: COST Office.
  • Government of the Republic of Cyprus. 2014. Strategy of Cyprus on Sea (Port) and Land Transport (Executive Summary). Lefkosia: Ministry of Communications and Works.
  • Government of the Republic of Cyprus. 2013. Transport Statistics 2012, Statistical Service. Lefkosia: Government of Cyprus.
  • Aristidou St.. 2014. Secretary of the Steering Committee negotiating the Larnaka Port and Marina DBFO Contract. Personal Interview. Lefkosia.
  • Government of Cyprus, Ministry of Communications and Works, Website: www.mcw.gov.cy/
  • Government of the Republic of Cyprus, Cyprus Port Authority, Website: www.cpa.gov.cy/
  • Zenon Consortium –Larnaka Port & Marina Re- development Brochure. LARNAKA ECO-WATERFRONT: Sustainable Expansion of a Historic Cypriot City. Larnaka: Zenon Consortium.
  • Daily Cypriot Newspapers: Philelepheros, Politis, Cyprus Mail. Period 2005-2014. Lefkosia.
  • C. Christodoulou, C. Efstathiades, 2014, Larnaca Port and Marina Re-development, in A. Roumboutsos, S. Farrell and K. Verhoest, COST Action TU1001 – Public Private Partnerships in Transport: Trends & Theory: 2014 Discussion Series: Country Profiles & Case Studies, ISBN 978-88-6922-009-8
  • Roumboutsos, A. (2015), “Larnaca Port and Marina Re-development” in Łukasiewicz, A., Roumboutsos A., Liyanage C., Pantelias A., Mladenovic G., Brambilla M., Bernardino J. and Mitusch K. BENEFIT Database, Deliverable of WP6, BENEFIT Business Models for Enhancing Funding and Enabling Financing of Infrastructure in Transport, Horizon 2020, DG Research and Innovation