The Poseidon consortium’s ambitious €215 million project to build and run the new Paphos marina was finally rejected on Wednesday, leaving runner up Pafilia construction company in with a chance to take on the project.
The marina management committee has now asked Pafilia to provide evidence that they can fund the construction and running of the marina.
“Provided the company meets the requirements and conditions of the competition an agreement will be signed between the government and Pafilia for the construction and operation of the Paphos marina,” head of the Paphos Chamber of Commerce Andreas Demetriades said on Wednesday.
Demetriades explained that the Poseidon consortium could not present evidence that they were able to find the necessary funds.
“Based on the information submitted, we concluded that the conditions were not met and we proceeded to invite the next tender, Pafilia, to negotiate and prove they can finance the entire project,” he said, adding that the goal is not to lose valuable time.
He said that if the deal fell through the ministry and the chamber would prepare new tender conditions and cancel the current effort.
The latest delay follows 10 years of postponements.
Following the announcement of the tender for the project in 2007, the contract was initially awarded to the Cybarco-Pandora consortium of which the Leptos Group is part in 2008. However, the other two bidding consortiums, Pafilia and Poseidon, challenged the award at various stages. They claimed the winning developer used inside sources to offer a lower figure for the construction of the marina, and was therefore awarded the tender.
The project was frozen after litigation began in 2008.
In December 2015, the supreme court voted in favour of Poseidon, a joint venture in which Aristo Developers is a mayor stakeholder. Poseidon submitted a project with a cost of €215m. According to the terms of the tender, proof of funds must total 60 per cent of that amount. This amount was set at €125m. Poseidon subsequently submitted they had cash of €25m and a number of banks – the Bank of Cyprus, Hellenic and Eurobank – would provide €100m, something that they ultimately failed to prove.
The plans submitted by Pafilia, the biggest developer in Cyprus, had a projected cost of €175m.
Pafilia is currently constructing major residences around the island. Its flagship development is ONE, a building of 37 floors on Limassol’s beach front. Once completed ONE will be the tallest residential seafront tower in Europe with a height of 170 metres.
The Paphos marina is to be located in the area of Potima between Kissonerga and Peyia. It will include up to 1,000 berths and more than 42,000 square metres of residential and commercial developments. The project will take approximately three years to be completed.
source:- http://cyprus-mail.com/2017/04/19/lack- ... a-project/
Lack of funds wrecks Poseidon’s Paphos marina project
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Re: Lack of funds wrecks Poseidon’s Paphos marina project
Poseidon goes to supreme court over Paphos marina rejection
THE Poseidon consortium whose bid to construct and run a new Paphos marina has been rejected said on Thursday it would launch an appeal with the supreme court, saying the decision was unlawful.
Poseidon’s tender was rejected by the marine management committee on Wednesday after the Paphos Chamber of Commerce insisted Poseidon didn’t meet the financial conditions of the tender and offered the project to Pafilia developers, which was next on the list of tenders.
But Poseidon project manager Aris Sophocleous said on Thursday that the company had complied with all the criteria.
“It is illegal and they had no right to do it,” he told the Cyprus Mail. “We have submitted a bank guarantee of €130 million from the Bank of Cyprus and a €26.5 million cash deposit, over and above our obligation.”
According to the terms, the company was obliged to prove they had €122 million or 60 per cent of the total amount of €215 million.
“Now they want another €100 million. We have sent letters by recognised auditors which we had no obligation to do saying that the funds will be available,” Sophocleous explained. “Now they say we didn’t submit some data on time, while they kept asking for more and more. This is unbelievable.”
In an earlier statement the consortium said they considered the marina management committee’s decision manifestly void and unlawful.
“This decision lacks any legality and violates any principle and notion of law,” the statement said. “The consortium, having studied the decision, has already instructed its legal advisers to take the case to court and to take all necessary legal and other legal measures to protect its interests and rights to annul the decision.”
The Paphos Chamber of Commerce on Thursday defended their decision.
“Based on the information submitted, we concluded that the conditions were not met and we proceeded to invite the next tender, Pafilia, to prove they can negotiate the contract,” said head of the chamber, Andreas Demetriades. “Yes, they submitted the bank guarantee, but they had to have €100 million in cash. “
He said this meant that the submission was not according to the required documentation.
“The funding is crucial. Pafilia has already confirmed that they have the funding available and they have to confirm it.”
Plans submitted by Pafilia, the biggest developer in Cyprus, had a projected cost of €175m.
Pafilia is currently constructing major residences around the island. Its flagship development is ONE, a building of 37 floors on Limassol’s beach front. Once completed ONE will be the tallest residential seafront tower in Europe with a height of 170 metres.
The Paphos marina is to be located in the area of Potima between Kissonerga and Peyia. It will include up to 1,000 berths and more than 42,000 square metres of residential and commercial developments. The project will take approximately three years to complete.
The Paphos marina project has been dogged by years of delays dating back to 2007 as tenders have been submitted, rejected and gone to court.
Both Poseidon and the Paphos Chamber of commerce said on Thursday, the latest legal action would not further delay the project, the Chamber of Commerce because they will ask the ministry to proceed with the next tender while the case is in court, and Poseidon because they expect a swift court ruling to reverse the decision.
source:- http://cyprus-mail.com/2017/04/20/posei ... rejection/
THE Poseidon consortium whose bid to construct and run a new Paphos marina has been rejected said on Thursday it would launch an appeal with the supreme court, saying the decision was unlawful.
Poseidon’s tender was rejected by the marine management committee on Wednesday after the Paphos Chamber of Commerce insisted Poseidon didn’t meet the financial conditions of the tender and offered the project to Pafilia developers, which was next on the list of tenders.
But Poseidon project manager Aris Sophocleous said on Thursday that the company had complied with all the criteria.
“It is illegal and they had no right to do it,” he told the Cyprus Mail. “We have submitted a bank guarantee of €130 million from the Bank of Cyprus and a €26.5 million cash deposit, over and above our obligation.”
According to the terms, the company was obliged to prove they had €122 million or 60 per cent of the total amount of €215 million.
“Now they want another €100 million. We have sent letters by recognised auditors which we had no obligation to do saying that the funds will be available,” Sophocleous explained. “Now they say we didn’t submit some data on time, while they kept asking for more and more. This is unbelievable.”
In an earlier statement the consortium said they considered the marina management committee’s decision manifestly void and unlawful.
“This decision lacks any legality and violates any principle and notion of law,” the statement said. “The consortium, having studied the decision, has already instructed its legal advisers to take the case to court and to take all necessary legal and other legal measures to protect its interests and rights to annul the decision.”
The Paphos Chamber of Commerce on Thursday defended their decision.
“Based on the information submitted, we concluded that the conditions were not met and we proceeded to invite the next tender, Pafilia, to prove they can negotiate the contract,” said head of the chamber, Andreas Demetriades. “Yes, they submitted the bank guarantee, but they had to have €100 million in cash. “
He said this meant that the submission was not according to the required documentation.
“The funding is crucial. Pafilia has already confirmed that they have the funding available and they have to confirm it.”
Plans submitted by Pafilia, the biggest developer in Cyprus, had a projected cost of €175m.
Pafilia is currently constructing major residences around the island. Its flagship development is ONE, a building of 37 floors on Limassol’s beach front. Once completed ONE will be the tallest residential seafront tower in Europe with a height of 170 metres.
The Paphos marina is to be located in the area of Potima between Kissonerga and Peyia. It will include up to 1,000 berths and more than 42,000 square metres of residential and commercial developments. The project will take approximately three years to complete.
The Paphos marina project has been dogged by years of delays dating back to 2007 as tenders have been submitted, rejected and gone to court.
Both Poseidon and the Paphos Chamber of commerce said on Thursday, the latest legal action would not further delay the project, the Chamber of Commerce because they will ask the ministry to proceed with the next tender while the case is in court, and Poseidon because they expect a swift court ruling to reverse the decision.
source:- http://cyprus-mail.com/2017/04/20/posei ... rejection/
Re: Lack of funds wrecks Poseidon’s Paphos marina project
I can't see this latest round not delaying things.
8 years ago, this would have brought well-needed jobs to the area and a huge boost to the economy. More difficult now to find investment.
8 years ago, this would have brought well-needed jobs to the area and a huge boost to the economy. More difficult now to find investment.
Re: Lack of funds wrecks Poseidon’s Paphos marina project
Lots of brown envelopes flying around I would imagine.
Re: Lack of funds wrecks Poseidon’s Paphos marina project
Thanks for this MM.
One thing - amongst many - that caught my eye - The latest delay follows 10 years of postponements..
One thing - amongst many - that caught my eye - The latest delay follows 10 years of postponements..
