Cyprus is set to sign an agreement on Friday with Hermes Airports to extend its management of Larnaca and Paphos international airports, alongside the launch of a major infrastructure expansion project at both facilities.
The agreement, already approved by the Central Committee on Changes and Claims (CCCA), will extend Hermes Airports’ concession for an additional 18 months. The revised terms also significantly reduce the company’s financial claims against the state, sources told Phileleftheros.
Key Provisions of the Agreement
- Extension of Concession: Hermes Airports’ management of Larnaca and Paphos airports will now run until December 2032, instead of November 2036 as initially proposed. This is an 18-month extension beyond the current concession, which expires on May 31, 2031.
- Financial Settlements: The state will pay Hermes €30 million in compensation, down from the company’s initial claims of €400 million. Hermes will waive all further claims related to changes in the business environment, including new tax laws, pandemic disruptions, the war in Ukraine, and the operation of a competing, illegal airport in northern Cyprus.
- Future Claims: Under the agreement, Hermes will not seek additional compensation from the state for any impacts caused by the operation of the airport at Tymbou in the occupied north.
Infrastructure Expansion
The deal also includes the immediate commencement of a €170 million second-phase expansion project for both airports. Plans focus on extending terminal facilities, with Hermes reportedly having already secured financing from Cypriot banks to proceed with the upgrades.
