Cyprus scraps $1.2 billion port concession, claiming contract breach

Cyprus has scrapped a 1.2 billion euro ($1.30 billion) concession agreement for the development of Larnaca port, claiming on Monday the operator awarded the project in 2020 was in breach of contract.

Operator Kition Ocean Holdings, which held a long-term lease to develop and operate both a yachting marina and a commercial port in the southern port town, did not immediately respond to a request for comment.

Larnaca is the staging post of a maritime shuttle of international aid into Gaza. The issue would not affect activity at the port, government officials said.

The consortium had failed to renew a letter of guarantee for the project which legal authorities considered a contractual breach, Transport Minister Alexis Vafeades said.

"This effectively activates a process where the port and the marina… are reverting to the administration of the state,"...