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Bids for privatized port satisfactory

23/02/2016 14:46
The government considers the bids for leasing the services of the Limassol Port satisfactory and it is preparing for the finalization of the agreements with successful bidders .

The chairman of the port authority and general manager of the ministry of transport Alecos Michaelides, told StockWatch that the offers made by investors to lease three services of the port of Limassol, fully meet the targets set by the government.

During the final evaluation the ministry examined 12 offers from an equal number of companies. Successful applicants were notified a few days ago and were given a 48-hour deadline to respond whether they accept the outcome of the competition. The government has not given details on the successful bidders and it expected to make statements on Thursday, after the minister informs the cabinet of recent developments.

According to Mr. Michaelides, the successful bidders are international companies with expertise in port services management. If they win the competition they will invest tens of millions of euros, maximizing the value of the port.

The competition relates to three separate contracts regarding the container terminal, the multipurpose station and maritime services.

The most expensive and important lease, he said, is the lease of the maritime services.

He explained that the award of tenders was based on offers made by the successful bidders who received a multi-page contract that included the tariffs they can charge.


The agreements must be approved by the parliament, as the minister of transport said on Sunday.

The transition period, which may last up to nine months, is among the issues that negotiations with the companies will address.

Mr. Michaelides said that the main objective of the state is for private investors, who will take over the port’s services on lease, to generate growth, ie to attract new ships to the port.

Each lease will be on a different contract as the state’s international advisors have proposed. This procedure will provide more benefits to the state and maximize the value of the port, as he pointed out.

The port’s annual net income currently stands between € 25 mn - € 30 mn, according to the president of the port authority.

International advisory, accounting and legal firms are supporting the technocratic team of the ministry of transport, which is leading the procedure and discussions with private investors.