21/06/2011 12:54
The experiment of cooperation of the private sector with the state succeeded, Hermes CEO, Alfred Van Der Meer stated today, within the framework of the event five years after the signing of the agreement for the 25-year exploitation of the two airports.
“Hermes is an experiment that succeeded for Cyprus. It succeeded due to the different approach of the business, an approach that achieved different and better results”, he said.
According to Hermes, the Larnaca and Paphos airports are a catalyst for the tourist development of the island and prove the successful cooperation between the public and the private sector for the realization of an ambitious project of exceptional importance for the island.
The cost of construction of the two airports stood at €680 million and the loan of €550 million that the company received will be paid off by 2025, six years before the completion of the 25-year agreement.
The state already received €200 million from the revenues of Hermes (one third of the gross revenues) and is expected to receive €1.5 billion more until 2031.
Hermes Airports is a joint venture of nine international and domestic companies.
The International Paphos Airport may serve more than 2.7 million passengers per annum, while that of Larnaca 7.5 million passengers per annum.
Mr. Van Der Meer stressed that the new international airports are possibly the best example that Cyprus has in relation to the value and the advantages emerging from the cooperation of the public and private sector.
He also stressed that the plans for the biggest construction project n Cyprus were completed on time and within the budget’s frameworks, while they are a significant source of revenues without a cost for the state.
He referred to the uncertainty from the financial crisis and the euro area conditions, the unrest in the Middle East and the financial data of Cyprus Airways as possible threats for the next five years.
Among the opportunities are the development of new tourist markets, the attraction of tourists from Eastern Europe and the Middle East, the expansion of the cooperation with low-budget airlines and the new commercial developments.
Finally, Mr. Van Der Meer expressed his wish that this significant work that has been done continues so as to safeguard that Cyprus has a place on the map and will take advantage of its abilities as a destination of tourism, trade and investment.
“Hermes is an experiment that succeeded for Cyprus. It succeeded due to the different approach of the business, an approach that achieved different and better results”, he said.
According to Hermes, the Larnaca and Paphos airports are a catalyst for the tourist development of the island and prove the successful cooperation between the public and the private sector for the realization of an ambitious project of exceptional importance for the island.
The cost of construction of the two airports stood at €680 million and the loan of €550 million that the company received will be paid off by 2025, six years before the completion of the 25-year agreement.
The state already received €200 million from the revenues of Hermes (one third of the gross revenues) and is expected to receive €1.5 billion more until 2031.
Hermes Airports is a joint venture of nine international and domestic companies.
The International Paphos Airport may serve more than 2.7 million passengers per annum, while that of Larnaca 7.5 million passengers per annum.
Mr. Van Der Meer stressed that the new international airports are possibly the best example that Cyprus has in relation to the value and the advantages emerging from the cooperation of the public and private sector.
He also stressed that the plans for the biggest construction project n Cyprus were completed on time and within the budget’s frameworks, while they are a significant source of revenues without a cost for the state.
He referred to the uncertainty from the financial crisis and the euro area conditions, the unrest in the Middle East and the financial data of Cyprus Airways as possible threats for the next five years.
Among the opportunities are the development of new tourist markets, the attraction of tourists from Eastern Europe and the Middle East, the expansion of the cooperation with low-budget airlines and the new commercial developments.
Finally, Mr. Van Der Meer expressed his wish that this significant work that has been done continues so as to safeguard that Cyprus has a place on the map and will take advantage of its abilities as a destination of tourism, trade and investment.
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