LARNAKA PORT AND MARINA RE DEVELOPMENT PROJECT (DBFO)
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1 LARNAKA PORT AND MARINA RE DEVELOPMENT PROJECT (DBFO)
2 Aims of the Project: Develop the Port in order to become the main cruise port in Cyprus Expand and transform the Marina into a high quality recreation harbour Develop the land in order that the area may be made more attractive to cruise pax, marina users and the general public Maximise concession payments to the Government by maximising overall value for money
3 Procurement Timetable: Date 25/10/ /10/ /12/ /5/ /11/ /1/ /7/2007 May-June 08 Activity Publication of Contract Notice in Official Journal of the European Union Dispatch of PIM and PQQ to prospective Bidders Return of Pre-Qualification Submissions Pre-Qualification and short-listing of Bidders Dispatch of ITT to short-listed Bidders Bidders Conference for short-listed Bidders Return of Detailed Bids Selection of Preferred Bidder
4 The European Cruise Market: s
5 The European Cruise Market Passenger (000s)
6 Passenger Traffic at Limassol and Larnaka Port Passengers Limassol Larnaka Years
7 Phase 1
8 Phase 2α
9 Final Phase
10 Indicative Development
11
12 Aerial View of the site of the Project:
13 Performance Mechanism The performance mechanism will be applicable to the Port and Marina operations, and will combine specific indicators with general measures of the quality of performance as measured against the Concession Company s own method statements. The Concession Company will be liable for financial penalties for certain levels of under-performance. The mechanism will be self monitoring from the Concession Company s performance monitoring system and is designed to encourage the Concession Company to improve its methods of operation. The Government will be entitled to conduct audits of the process from time to time.
14 DEVELOPMENT AND OPERATION OF LARNAKA PORT AND MARINA LEASE STRUCTURE CPA Grantor ProjectCo Head lease 99 years Sub-lease 99 years Sub-sub-lease 99 years After the expiry of the Concession Agreement, it becomes a head lease for the remaining period Subcontractor Sub-sub-sub-lease 99 years
15 Concession Payments to the Government:
16 Transfer of Employees: The current Law Chapter 184, Port Workers Stevedores Licensed Porters
17 Non-Hourly Paid Employees Of the 62 CPA non-hourly paid employees, the CPA intends to retain 28 of these individuals (including 23 for pilotage and towage operations, which the CPA wishes to continue to provide at Larnaka under a commercial subcontract with the Concession Company). For the remaining 34 CPA staff along with the 14 Marina non-hourly paid employees, the Concession Company will be obliged to make offers of employment to these employees on terms which ensure that such individuals should be in an equal or better position than that which they would have been in had they continued to be employed by the CPA/Marina. For those employees who reject such offers of employment, the Concession Company will be required to pay compensation to the Government. Such compensation shall be 2 times the annual salary for each employee.
18 Regular Hourly-Paid Employees Regular hourly-paid employees of the CPA / CTO are different to the extent that they are not granted the same rights under the law as Public Servants. The Personnel and Public Administration Department of the Government does not view these employees as Public Servants. They should be regarded as employees in the private sector, having the rights and obligations given to them by their employment contract and the provisions of the relevant collective trade union agreements. The regular hourly-paid employees will be eligible for transfer to the Concession Company, and the Concession Company will be obliged to make offers of employment to these employees on terms which ensure that such individuals should be in an equal or better position than that which they would have been in had they continued to be employed by the CPA / CTO. For those employees who reject such offers of employment, the Concession Company will be required to pay compensation to the Government. Such compensation shall be 2 times the annual salary for each employee.
19 1.Transfer of Employees [1] 1.The CPA currently carries out a number of the Port operations, such as, pilotage, cranage, store keeping and security. The CPA currently employs sixty (62) individuals at the Port, who have a status similar to Public Servants (i.e. non-hourly paid), together with eight (8) regular hourly-paid employees, who carry out cleaning duties. Summary details of all current employees are provided in the IM contained in Appendix A of this ITT. 2.The bulk of other operations at the Port are carried out by the private sector (see section 2.11 below). 1.The Larnaka Marina currently employs fifteen (15) employees, fourteen (14) of which have a Public Servant status with the CTO and 1 Security Guard was hired from a private company. There is also a position for an Assistant Marina Director that is currently vacant since the old Assistant Marina Director retired recently.
20 Maximum Compensation Amount The compensation amounts payable to the Government by the Concession Company for those non-hourly paid and hourly paid employees who reject offers of employment from the Concession Company (as described above) will be subject to a maximum amount of CYP3 million.
21 Third Party Labour Licensed Porters at the Port currently undertake the horizontal transportation and stacking of containers, the loading and unloading of materials in the stores and on the dockside, and the handling and movement of passenger luggage. They are licensed by the CPA and form Associations. The rates charged by the Licensed Porters are agreed with the CPA following applications from the Licensed Porters Association ( LPA ). Charges are paid to the Licensed Porters by the recipients of the cargo. Stevedores are responsible for the loading and unloading of cargo from the quayside to the vessel and vice versa. The CPA is not legally permitted to provide Stevedores, who are subject to the 1952 Port Labour Law and are employed by the Shipping Agents on behalf of shipowners from a registered pool of labour. Stevedores are paid on the basis of collective agreements between the Shipping Agents and representatives of the Stevedores. Currently, operations at Larnaka and Limassol are carried out under the same collective agreements. There are currently fifty-one (51) Stevedores, six (6) Tally Clerks and thirtyeight (38) Licensed Porters at Larnaka.
22 1.The current law (Chapter 184, Port Workers) and all existing agreements for third party labour as described above shall continue to apply during the concession (i.e. the Concession Company and Port users shall continue to use the services of the current Licenced Porters, Stevedores and Tally Clerks). However, a lower number of Stevedores and Tally Clerks (i.e. 30 Stevedores including 5 Tally Clerks) could instead be employed if the Concession Company were to compensate the Government for an amount of CYP5.4 million to be used in a compensation scheme for all current Stevedores and Tally Clerks.
23
24 Thanks for your attention!
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