Cyprus’ Audit Office has identified significant weaknesses in the procedures for issuing marina licences, citing years-long delays, administrative inaction and lost public revenue.
In a special report, the Audit Office said several projects remain stalled despite the relevant marine areas being designated between 2018 and 2019 and licence applications having already been submitted.
As a result, public marine areas have remained reserved for years without being developed, preventing the state from putting them to alternative use in the public interest.
No meaningful consequences
The report notes that licence holders may benefit financially through higher property values or business transactions linked to their permits, while facing few practical consequences for prolonged delays in completing their projects.
The Audit Office argues that this creates an imbalance, allowing public marine areas to remain tied up without delivering the intended economic or public benefits.
Legal opinion on annual fees
According to the report, the Law Office ruled that imposing the annual management fee before a marina begins operating legally could be considered excessively burdensome and potentially unconstitutional.
It therefore recommended that the fee should only become payable after the licensing process has been completed and the licence has officially taken effect.
However, the Audit Office points out that, despite recognising the need to amend the legal framework, the proposed legislative changes have yet to be submitted. As a result, marine areas continue to be reserved without annual management fees being collected.
Audit Office recommendations
The Audit Office recommends:
- Immediate amendments to the law to introduce a reduced annual fee before full licensing is completed.
- Clear deadlines for completing licensed projects.
- Powers to revoke licences or withdraw designated marine areas when investors fail to meet their obligations.
- A maximum time limit to prevent public marine areas from remaining reserved indefinitely without development.
The report examines the licensing process for recreational boat mooring areas and covers procedures overseen by the Deputy Ministry of Tourism and the Ministry of Energy, Commerce and Industry.
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