Limassol Port to become a development hub for the economy.

The privatisation of the commercial activities of Limassol Port is expected to give the state an income of two billion euros in the next 25 years, the House Communications Committee heard on Thursday.

Minister of Transport, Communications and Works, Marios Demetriades, outlined the economic aspect of the agreement to commercialise three of the port`s services as well the business plans of the contractors.

He noted that the total revenue for the state, based on the net present value and business plans of the preferred contractors, will be 1.16 billion euros.

Speaking to reporters after the meeting, Demetriades underlined that the agreement is “very beneficial for the state", adding that "on the basis of the contractors` predictions the revenue for the state within the next 25 years will reach two billion euros.

“You can appreciate the size of this agreement and the significance it has for the Cypriot economy,” he added.

Regarding the agreement on the container terminal the Minister stated that the rate will be 62.71 per cent, for the marine services it will be 10.1 per cent and 52.1 per cent for the multipurpose terminal.

According to the business plan provided by the contractors the expected revenue will exceed 40 million euros. “With taxes and money invested in the superstructures we are talking about a potential benefit of about 50 million euros,” outlined Demetriades.

The Minister remarked that contractors will invest more than 100 million euros on superstructures in the coming years.

“These numbers are particularly beneficial for Cyprus and exceed our initial expectations," added Demetriades.

"We are talking about two giants that will manage our ports, we are talking about an additional turnover for our economy, and that Limassol Port will become a true development hub for the economy.”