A €1 billion private/state consortium is to undertake the biggest infrastructure project ever in Cyprus that will boost the building industry, inject millions of euros into the economy and boost the real estate industry.

The Larnaca marina and port project will involve the building of a 1,000 berth marina, hotels and luxury villas, giving a much needed boost to the Mediterranean island's depressed real estate and construction markets, according to the government's communication Minister Nicos Nicolaides.

Announcing that it will be built in partnership with A. Vouros Consortium, he said that negotiations will now concentrate on the finer details of the project. 'This is one of the largest infrastructure projects ever undertaken in Cyprus. It is an inspired project for Larnaca and for all of Cyprus,' he said.

The first phase to develop the existing port is expected to take three years to complete with the rest on target to be finished in six years. It will mean that the port will be able to provide facilities for the large third generation cruise ships which cannot currently dock on the island.

The total project is expected to generate one billion euros in cost, without any burden on the state, as a private company will take on the study, finance, construction and management of the project for 35 years after which it will be returned to the public sector. The project's construction and subsequent operation is expected to add a huge boost to the economy, said Nicolaides.

The finished project is expected to become a major attraction for tourists coming to Cyprus as well as transit centre for commerce in the European Union.