The Chinese state company will undertake the construction of an exhibition center at the site of the old Larnaca airport, should a deal with the Chinese company Far Eastern Phoenix be clinched, Communication and Works Minister Efthymios Flourentzou said here today.

The government received on Thursday written clarifications from the Chinese investor, concerning the details of the project’s development, which Flourentzou said “were in the right direction”.

He added that the investor committed himself orally that he is ready to satisfy all concerns put forward by the government.

“We hope that things develop in a positive way, through mutual understanding on the issues under discussion” the Minister said.

Asked if there are any concerns on the financing of the project, Flouretzou explained that the investor needs to have the agreement in writing, in order to proceed with the bank loan, something which, he added, is common practice.

Today Flourentzou also met his Australian counterpart Anthony Albanese, with whom he discussed issues of mutual interest, especially in the maritime sector as well as the Cyprus economy.

Albanese said the two countries have very close relations and that the two sides discussed ways to increase existing cooperation in the areas of public works and transport, as well as the maritime sector.

“I look forward to increasing the positive relation that we have between our two countries, based on people to people contact” the Australian Minister said.

He added that Australia has been a great supporter of justice for Cyprus and noted the presence of many Cypriots in Australia, who participate and make a great contribution to public life.

Cyprus has been divided since 1974, when Turkish troops invaded and occupied its northern third. A new round of peace talks started on September 2008 to find a negotiated settlement that will reunify the country, under a federal roof.