The final 25-year duration agreement regarding the construction, development and operation of the Larnaca and Paphos airports by Hermes Airports Ltd has been signed and operation has been transferred to the consortium.
The agreement was signed between the Government of the Republic of Cyprus, represented by the Minister of Communication and Works, Haris Thrasou and Hermes Airports Ltd, represented by its Chairman, Nicos Shacolas, and the banks that will finance the project.
Cyprus Trading Corporation (CTC) holds 11.34% of the share capital of Hermes Airports Ltd. The retail operations in both airports have been assigned to CTC-ARI Airports Ltd for a period of 25 years effective as of 1 July 2006, 50% of which belongs to CTC (20%), FWW (20%) and N.K Shacolas (Holdings) Ltd (10%). The remaining 50% belongs to AerRianta International (Middle East) WLL.
The works for the construction of the two new airports will commence in the next few days. The Paphos Airport and Larnaca Airport are expected to be completed before the end of 2008 and before the end of 2009, respectively. The contract works, buildings and equipment have been assigned to the French company Bouygues Batiment É ntl in cooperation with the French Egis Projects S.A and also the local companies Iacovou Brothers (Constructions) Ltd and Charilaos Apostolides Pcl.
The project is expected to cost some EUR 622 mln, and will see the construction of two passenger terminals at both airports, featuring VIP and CIP (Commercially Important Persons) halls, CCTV, and the CUTE (Common Use Terminal Equipment) system
CUTE allows an airport to organise gate and check-in counter allocations and system management in the most efficient way. It controls and integrates all components, including the airline gateways, emulators and peripheral drivers (printers, boarding gate readers, workstations etc.).
The changes will see the airports transform into fully modern facilities, with walkways leading passengers directly from the new terminals to the plane.
Under the BOT (Build, Operate, Transfer) agreement, Hermes will take over operation of the airports for a period of 25 years, after which it will return them to the government.
The latter will receive 33% of Hermes’ gross profit, plus a fixed EUR 3.5 mln concession fee every year.
The state is expected to rake in some CYP 2 bln in revenue over the 25-year period.
Capacity at both airports will increase. Larnaca, which was designed to service 2.5 mln passengers, but currently some 6.5 mln people use the airport every year. The target is 9 mln passengers.
The new terminal there will be located some 2km from the existing building, and will be directly accessible from the Rizoelia roundabout junction.
