Cyprus Government Extends Agreement with Hermes Airports Until 2033

The Government of Cyprus and Hermes Airports have signed a new agreement that will extend the management of Larnaca and Paphos airports until 2033.

This agreement, reached after extensive negotiations, is expected to settle long-standing financial disputes and open the door to major expansion projects aimed at boosting Cyprus's aviation sector.

The agreement outlines the initiation of the second phase of construction at both Larnaca and Paphos airports, while also resolving unresolved claims and issues that have lingered for years, according to a joint statement issued after the signing.

As part of the agreement, the concession period has been extended by 18 months, and a compensation payment of €30 million has been agreed upon.

Construction work at both airports is set to begin by the end of the first quarter of 2025, once the necessary loan agreements between Hermes Airports and the financing banks are completed, and all required building permits are secured. The entire project is expected to take around 30 months to complete.

Additionally, the Republic of Cyprus will provide Hermes Airports with a €20 million loan in exchange for the withdrawal of all current claims related to the operation of Ercan Airport in the Turkish Republic of Northern Cyprus (TRNC).