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Cyprus completes Limassol port privatization process despite strong opposition

Xinhua, March 25, 2016 Adjust font size:

The Cypriot government managed to push through parliament legislation finalizing the privatization of commercial operations at the eastern Mediterranean island's primary Limassol port despite lacking a majority in parliament.

Parliamentary sources said on Thursday that 27 deputies voted in favor of regulations detailing the privatization and 20 voted against during a stormy session of the 56-member chamber.

Strong opposition by socialist and left wing parties, fanned by an electoral campaign for parliamentary elections in May, had threatened the deals between the government and three international consortium which had obtained the concessions at the port.

But present deputies of center DIKO party finally sided with the ruling DISY party's deputies in voting for the regulations

DISY has only 20 seats in the parliament, forcing it to make concessions to small parties to pass legislation related to Cyprus's three-year economic adjustment program and a 10-billion-euro bailout.

To obtain DIKO's support, the government had to rush through parliament urgent legislation safeguarding employees jobs at the Port Authority, which will still supervise operations at Limassol port.

In doing so it also convinced employees of the Port Authority to end a four-day long strike which had crippled work at the port.

Failure to pass the regulations would leave a blemish on Cyprus' record in applying reforms demanded by the Eurogroup and the International Monetary Fund.

Cyprus received permission by its lenders to exit its program this month, having achieved economic progress in excess of projections by its lenders.

But important issues have been left outstanding.

Most notably, the government has backed down from its effort to hand the state-owned telecoms to a private law corporation in which it would be the only shareholder and to prepare the state-owned Electricity Authority for possible privatization.

Sources said the government may also have to back down from its plans to split the corporation into two separate entities, to avoid a possible strike by electricity production employees early next month, which would lead to a general blackout. Endit