Government to extend Hermes Airports contract until 2033

The contract between the Government and Hermes Airports for the extension of the management of Larnaca and Paphos airports until 2033 is anticipated to be signed today, 23 December.

According to statements to CNA by the Minister of Transport, Communications and Works, Alexis Vafeades, the agreement reached between the Government and the contractor company provides for a one and a half year extension of the validity of the contract, which expires in 2031.

As he mentioned, in the agreement reached between the Government and the contractor company, after a year of negotiations, it is foreseen that Hermes will proceed immediately with the implementation of the second phase of the airport expansion projects.

According to the Minister, the agreement reached between the contractor company and the Government, which will be signed at the Presidential Palace, in addition to the extension of the contract by one and a half years after the contract expires in 2031, also provides for compensation of €30 million from the state to the company, instead of €430 million, as well as a waiver of all other claims of the company and its withdrawal from the standing claims for compensation from the use of the illegal Tymbou airport.

Regarding the completion schedule of the expansion projects of Larnaca and Paphos airports, Vafeades stated that in Larnaca, the delivery of the projects has been set within 30 months from the start of work, which is expected to be within the first quarter of 2025, and the delivery of the projects in Paphos has been set within 27 months from the start of work.

The projects concern the expansion of the building facilities of the terminals of Larnaca and Paphos airports, as well as work on runways that will serve aircraft traffic.

He added that a new building will be created at Larnaca airport, which will also serve low-cost companies.

(Source: CNA)