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Cyprus tenders Paralimni Marina Development Project

Cyprus, Tender, Invest, Marina, Paralimni, Development, Project, Due Diligence, Analysis, Navigator, Consulting

The Cyprus Ministry of Energy, Commerce, Industry and Tourism (MECIT), has issued a call for the tenders for the development of the Paralimni Marina. The deadline for submission of tenders is October 30, 2015 at 12:00 am Cyprus time.

The land will be licensed by the Republic of Cyprus to an investor for a period of 125 years. A marina operator must be among the consortium of investors selected.

The Republic of Cyprus aims to develop a world class marina in order to achieve the establishment of a safe navigation zone, enhance the tourist experience and reduce seasonality of tourism arrivals in the area by attracting higher-spending year-round tourists.

Tourism is a significant sector of the Cypriot economy. A number of tourism stakeholders of the public and private sectors have highlighted their belief that the development of marinas in Cyprus will provide an additional incentive to attract tourists throughout the year and will thus contribute to the improvement of the quality of the tourism product of Cyprus.

In this respect, MECIT promotes the growth of nautical tourism with the development of marinas as well as of yachting berth-places along the Cyprus coastline. The Limassol marina, which was recently established, forms a sample of the effort of the Ministry to enhance the image of touristic Cyprus, its competitiveness and its attractiveness. The development of nautical tourism is anticipated to improve the economy and create new jobs.

Licensing Procedure

The Paralimni land licence contest regards the award of a contract for the development of Plot number 44, Sh/Pl 2-294-379, Βlock 8, reg. Paralimni (3101) (Appendix A1) and the front sea area at Louma area in the Municipality of Paralimni in Famagusta – Cyprus, for the purpose of the development of the Paralimni marina.

The plot area will be awarded by granting a land license for marina development to the Successful Tenderer, provided that a land licence agreement will be signed between the successful Tenderer and the Cyprus Contracting Authority.

A separate grant of land lease for housing development, if any is proposed, may be considered and if it is approved, a separate land lease agreement will be signed amongst the successful tenderer and the Cyprus Contracting Authority.

Tenderers should take into account and comply with the laws of Cyprus, and in particular with the following legislation:

  • The Regulation of Cyprus Marinas Law of 1977 until 2002 (L.4/1977), as amended.

  • The Management of Berthing Places of Yachts Law of 2007 until 2013 (L.46 (I)/2007) as amended.

  • The Cyprus Fishing Shelter Law of 1990 (L.171/1990) as amended.The Fishing Shelter Regulations (KDP 83/1994), as amended.


The successful Tenderer is obliged to file applications and complete all procedures to obtain Cyprus Τown Planning permits, building permits and any other permits required to implement the tenderer proposal.

Boundaries of Paralimni Fishing Shelter

The interested parties / Tenderers should take into account the boundaries, laws and regulations of the adjacent fishing shelter (Paralimni Fishing Shelter) and the construction and development of the Paralimni Marina should not interfere with the orderly operation of the fishing shelter or its infrastructure. During the issuance of the required planning permit of the project, the Cyprus Town Planning Department will take into account the views of the Director of the Cyprus Department of Fisheries and Marine Research.


An underwater archaeological survey should be conducted in the area affected by the project, before the commencement of the project. The cost of the archaeological survey, which is estimated to be up to €30.000, will be undertaken by the successful Tenderer. In case the cost of the survey exceeds the estimated amount, the extra cost will be undertaken by the Cyprus Contracting Authority. The underwater archaeological survey will be conducted by a competent scientific body, which will be designated by the Director of the Cyprus Department of Antiquities, with a methodology determined by the latter.

Technical Aspects

  1. Each Tenderer must provide a business plan for the first five (5) years from the signing date of the Contract which will include the following:

  2. a brief description of the Tenderer´s understanding of the requirements of the license

  3. the approach and methodology for the development of the Paralimni Marina

  4. a preliminary schedule of activities for delivering the contract scope (Gantt chart)

  5. the process of obtaining all relevant permits/ licenses from competent authorities in Cyprus

  6. a description of the critical issues which are related to the fulfillment of the Paralimni Marina contract scope (paragraph 14)

  7. a risk assessment which may affect the smooth implementation of the Paralimni Marina contract scope

  8. the financial resources required for the construction and operation of the Paralimni Marina project

Non Technical Aspects

Each Tenderer must provide:

  • a solemn declaration statement

  • a Bank Guarantee for Participation, for the amount of EUR 60.000 (sixty thousand Euro)

  • proof of funds

  • Tenderers´ ownership and structure information

Solemn Declaration

A Solemn Declaration statement must be provided, certifying the Tenderer’s personal situation (a template is provided in Appendix D).

Bank Guarantee for Participation

A bank guarantee to the Permanent Secretary of the MECIT is required to ensure the commitment of the tenderers. The amount of the bank guarantee for participation has been set at EUR 60.000 (sixty thousand Euro), and must be submitted together with the proposal.

Tenderers are cautioned not to view the bank guarantee for participation as having some relation to the value of the Paralimni Marina land license amount being offered in Envelope B - Financial Proposal and are advised to make their own valuation of the license to be granted.

The bank guarantee must be issued by a financial institution lawfully operating in Cyprus or in other countries of the European Union (EU) or the European Economic Area (EEA) or in third countries who have signed and ratified the Government Procurement Agreement (GPA) or in other countries who have signed and ratified association agreements or bilateral agreements with the EU or with the Republic of Cyprus, and having the right to issue such guarantees in accordance with the legislation of these countries.

The bank guarantee should be in the format of the relevant Template in Appendix C. In the case of a consortium, the bank guarantee must state that it covers jointly and severally all consortium members. The letter of guarantee will be irrevocable, on first demand and will include a declaration of the bank providing the guarantee that it will be liable as principal debtor, a declaration regarding the bank’s waiver of all objections, as well as a declaration for payment that it forfeits in favour of the Contracting Authority.

Non-compliant bank guarantees shall be rejected and the Tenderers who submitted such non-compliant bank guarantees shall be disqualified and so notified by the Contracting Authority in writing.

Proof of Funds

Tenderers must prove that they have adequate financial resources for the development and operation of the Paralimni Marina. Financial adequacy may be proved by one of the following funding sources:

  1. In case of a loan from one or more financial institutions, the Tenderer must submit a duly signed statement by the financial institution(s), which declares that the institution(s) shall finance the Paralimni Marina project on the basis of the business plan submitted with the proposal and the conditions of the present contest.

  2. In case the Tenderer intends to finance the development by external sources but not through a loan from a financial institution, the tenderer shall submit a duly signed certified statement from such organizations that they shall provide financial support to the Paralimni Marina project on the basis of the business plan submitted with the proposal and the conditions of the present contest.

  3. In case the Tenderer intends to finance the project by equity, the tenderer shall submit a signed declaration certified by a qualified Accountant stating that he has the required financial resources to finance the project on the basis of the Paralimni Marina business plan submitted with the proposal and the conditions of the present contest.

Financial adequacy is achieved when any combination of the above three financing methods amounts to the total financing required that is stated in the business plan.

Tenderer´ Ownership Structure

Each tenderer must provide the following:

  1. A notarised declaration in accordance with Appendix E, of current ownership structure, indicating the shareholding structure of the Tenderer’s company, voting and non-voting shares, identity of the controlling shareholders, identification of the operating company, identity of the board of directors.

  2. A statement regarding the subcontractors/ associates that the tenderer intends to use and which of the contract´s tasks each subcontractor/ associate shall implement. (c) In the case that a Tenderer is a consortium, a notarized document must be submitted defining which of the contract´s tasks each consortium member shall implement. It is noted that consortia are not obliged to take a specific legal form in order to submit their proposals. In the case where the successful Tenderer is a consortium, then such consortium shall be obliged, before the Contract is signed, to take the legal form of Company or Partnership.

Evaluation Process

The proposals will be evaluated based on the Qualification Adequacy and Financial envelopes as described in PART IV of the contest documents.

During the evaluation process, the Steering Committee for the Cyprus Marinas may, at its discretion, seek clarifications from tenderers, including requests for the submission of supplementary information regarding their proposal, with regard to matters that are both unclear and may have a material effect on the outcome of the evaluation. Only evidenced documentation shall be accepted.

Requests made by the Steering Committee for the Cyprus Marinas, under paragraph 18.2, shall be communicated in writing by letter, fax or email, to the tenderer concerned. Such requests shall specify a reasonable time period for response by the concerned tenderer, which, in any event, shall not exceed fifteen (15) calendar days from the date the request was communicated to the concerned tenderer. Failure on the part of the concerned tenderer to respond to such a request within the specified time period and in a manner that resolves the issue that caused the issuance of the said request shall result in the disqualification of the said concerned tenderer.

Tenderers who do not meet the evaluation criteria will be so notified by the Permanent Secretary of MECIT and their bank guarantee, which was submitted by virtue of paragraph 16.2.2, will be returned to the said tenderers, within thirty (30) days from the date the decision is made.

Evaluation of Qualification Adequacy Documentation

The qualification adequacy will be assessed based on the documentation provided.

Only the financial offers (Financial - Envelope B) of the tenderers who satisfy the qualification adequacy criteria will be considered for evaluation.

Tenderers who do not meet the qualification adequacy criteria will be so notified by the Permanent Secretary of MECIT.

Navigator Consulting has extensive experience in marina and tourism development in Cyprus and Europe. For further information on the Paralimni Marina Project, or assistance in drafting a marina business plan, please contact us.

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