New Limassol Marina

September 2009 Start

Cyprus News – 29.6.09

Construction of the new marina in Limassol, which will have capacity for 1,000 yachts, will finally start in September, following delays in the co-ordination of services and financing problems. Earlier this month, the Cyprus Minister of Commerce, Antonis Paschalides, speaking before the House Committee, confirmed an early September start.

Contracts worth €170 million were signed in February of this year, amid much celebration. The Cyprus Trade, Industry and Tourism Minister Antonis Michaelides said that that the new marina will be, “a unique jewel for Cyprus.”

In April, the project schedule hit delays because of financing problems when Cypriot banks decided they wanted more extensive guarantees from the government before agreeing to finance the project.

The economic crisis and the downturn in the housing market were the reasons behind their caution. Chairman of the Limassol Chamber of Commerce and Industry, Demetris Solomonides said that the joint venture had asked the government to guarantee the loans so as to secure lower interest rates.

However, the government refused to agree to secure the loans to investors backing the construction of the marina and things hit a temporary impasse.

To their credit, the joint venture continued their negotiations with the banks and eventually managed to secure the loans they needed to begin construction.

When completed, the marina will give not just Limassol, but the entire country, a much-needed boost. The mayor of Limassol, Andreas Christou said that the construction of the Limassol Marina is of national importance to Cyprus as the city’s trade and economy will benefit.

He added, “Things could have been developed faster, however, time can be gained and the project can be a model for the construction of the other marinas that will follow.”

Limassol is just one of several marinas which will be built around the island over the next few years. Paphos, Larnaca and Ayia Napa will also benefit from increased tourism once the new marinas are completed.