Address by the President of the Republic at the
inauguration
of the Terminal for the storage and management of
petroleum products
It is with great pleasure that I accepted your invitation to inaugurate the
terminal of the VTT Vasilikos Ltd (VTTV) for the storage and management of
petroleum products.
The project we are launching today is an important part of our wider Energy
Centre. Our plans are ambitious. The developments planned in the Vasilikos area
concern gas storage facilities and petroleum storage terminals with the aim to
move the facilities from Larnaka, as well as the storage of the Republic’s
national stocks. Furthermore, the area can be utilized in the framework of our
energy policy in relation to natural gas reserves.
It is a project that will give impetus to our economy as we expect that,
when all the designs are completed, it will provide opportunities for
synergies, which will benefit all the companies that will be established in the
area.
We expect that the residents of the neighbouring communities will also
enjoy significant benefits from the stimulation of the local economy, as well
as from the creation of jobs, both in the construction phase of the projects and
in the stage of their operation. I must stress at this point, that the Council
of Ministers has also approved a series of compensation measures for the
benefit of the eight communities of the area, always in collaboration with the
local leadership and in line with their demands.
The project we are inaugurating today, constitutes an economic achievement
for Cyprus; it started in the middle of the economic crisis, in response to
those who doubt our capabilities.
In periods of economic recession, projects of such magnitude are rarely if
ever executed. But the VTTV company’s Terminal for the storage and
management of petroleum products, a project of 300 million euros, is here and
in operation, reminding everyone that Cyprus is not only standing on its feet
but will move forward and reach the success it deserves.
We look to the future with confidence; we look forward to economic growth
soon. A basic prerequisite for this is investment. Our economy needs a booster
from abroad and it is for this reason that I have personally undertaken a
campaign, in a number of countries, to attract investments.
From my visits to the Gulf, Russia, Europe and America, I established that
there are positive signs and I expect concrete results in the future.
At the same time, I want to inform you that the Ministry of Finance, in
cooperation with the private sector, is processing and will soon announce
adjustments, which will further improve the tax framework, so as to provide
facilities for the attraction of further investments from abroad.
We are aware that on many occasions our state had not been friendly towards
private initiatives. Bureaucracy and outdated administration methods had been
hindering the implementation of the state’s objectives, which were in line with
the ambition of Cypriot and foreign investors, regarding the expansion of their
business activities.
We are determined to proceed to a substantial reform of the public sector,
to the modernization of the state. We have a reform programme of our own, which
includes a wide range of issues. Our goal is to ensure, through growth,
thousands of new employment positions.
We do not need anyone to impose the modernization of the public sector, the
semi-public sector, education, and local administration. No-one needs to force
us to create an effective health system for our citizens. It is our position
that our country is in need of major changes in order to move with the times.
Our reform programme entails the simplification of procedures for the
licensing and operation of businesses, a new growth legislation, which will
include a process of accelerated licensing of strategic investments, a new
regulatory and institutional framework for tourism and other vital sectors of
the economy. We aspire to be able to carry out soon the reform of the Cyprus
economy, which will lead to a restart and growth.
The VTT Vasilikos Ltd Terminal for the storage and management of petroleum
products, which we are launching today, is in line with the VTTI B.V. Dutch
company’s vision, and also our own, to create a hub for trading petroleum
products in the strategically important region of the Eastern Mediterranean. This
Terminal constitutes the springboard for development in the Vasilikos area and
it is the largest private energy project ever constructed in the Republic of
Cyprus until now. It is a pioneering project since it is the first project of
its kind, built in our region, aimed at transit trade.
Due to its strategic location, the Terminal connects the markets of Europe
and the Black Sea with those of the Middle East and Asia. Its significance for
the wider region becomes more salient due to the operation of large oil
refineries in the Middle East and also the deliberations that are taking place
for upgrading the Suez Canal so as to allow ships of larger capacity to pass by
this strategic naval passage.
Moreover, this project has helped us overcome a longstanding problem in the
city of Larnaka. I am referring to the oil facilities, which had been
contributing, for decades, to the undermining of the city’s coastal front.
As is known, the Cyprus Organisation for Storage and Management of Oil
Stocks concluded a three-year agreement with VTTV for the rental of storage
space to maintain and manage the national oil stocks that are being kept at the
Cyprus Petroleum Storage Company’s facilities. It is important to say that the
cost of storing the national stocks in these facilities will remain
at the same level, while, at the same time, an opportunity has been created to
repatriate the reserves we kept abroad, securing a strategic advantage in case
of a sudden energy crisis.
I would like to warmly congratulate VTTV and all those who worked for the
completion of this extraordinary infrastructure project, which highlights
Cyprus’ significant role in transit trade and generates new prospects for the
domestic oil market.
I wish you success in your work.
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