The negotiations with Qatari Diar for the construction of a luxury hotel, a shopping center and housing units opposite Hilton in Nicosia is a real headache to the government. Qatari Diar seems to insist on the evaluation of the land and the project at €50 million, recommending to the government a solution that might be a real headache few months before the upcoming parliamentary elections.

The consultants of the Republic had evaluated the land opposite Hilton at €135 million while those of Qatar at €38 million.

The differences were spotted in the evaluation of the units that will be sold as soon as the project is finalized.

The representatives of Qatar believe that the units will have an average price of €3 - €3.5 thousand per sq. meter, while the government expects that the sale price will reach €5.5 thousand.

The revised proposal of Qatari Diar allegedly includes the difficult political formula of payment of €50 million by the Qatari company for the land with the prospect that the Cypriot government will receive 100% of the profits emerging from the project.

Qatari Diar offers the opportunity to the Republic to enjoy all profits that will emerge far beyond of what Qatar believes it is feasible, that is, more than €3.5 thousand per sq. meters.

Qatar’s revised proposal is a headache to the government, which is urged not leave the prospect of a cooperation with Qatar unexploited, on the one hand, and to explain why the state land will be allocated to the joint venture at a lower price than the evaluation of its consultants on the other.

Part of the business world believes that the investment of Qatar in the project will be the beginning for other investments too.

According to businessman and Board member of the joint venture, Andreas Pittas, the investment will be the threshold for new investments on the island since the Qatari businessmen follow their Emir in investments.