Cyprus To Re-Build Two International Airports

by Lorys Charalambous, Tax-News.com, Nicosia

05 September 2002

Cyprus is planning to re-build its two international airports, at Larnaca and Paphos. Both have emerged as major tourist destinations since the Turkish occupation in 1974 forced the abandonment of Nicosia airport, which is now a desolate stretch of weed-infested tarmac used mostly for unofficial motor-racing.

Five bidders have been selected by the Government after a preliminary tendering process which saw a further five bidders eliminated. On Monday a conference for the five successful bidders opened in Nicosia.

Communications and Works Minister Averoff Neophytou said his ministry would make every effort to ensure a transparent and fair tendering procedure for the concession contract for the development and operation of the two new airports. The winner will become the Government's strategic partner in a CY£200m BOT (Build-Operate-Transfer) project that will see the winning bidder running the facilities for the next 20 years.

"A transparent and fair tendering procedure will ensure that the Concession Contract will be awarded to the best-evaluated bidder," Neophytou said.

The five joint ventures are Alterra Consortium, Cyprus Gateway Airports, Hermes Airports, Project Pegasus and a consortium headed by J & P (Joannou and Paraskeviades). The winner is expected to be announced this year, and construction will begin in 2003. The new Paphos Airport is expected to begin operating in 2004 and the new Larnaca Airport in early 2005.

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