BAA consortium eliminated from Cyprus airport tender

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Cyprus Airport Group - a consortium including UK airport authority BAA - has been excluded from bidding to manage Cyprus Larnaca and Paphos airports, while the Alterra Consortium, including Manchester Airport, has been nominated preferred bidder

Cyprus Airport Group - a consortium including UK airport authority BAA and Cypriot construction firm J&P - has been eliminated from the bidding for management of Cyprus' Larnaca and Paphos airports. The group was dropped from the race after offering the government the lowest percentage of annual turnover (20.215%) out of the three interested parties.

Alterra Consortium - comprising Manchester Airport, Bechtel International and Royal Bank of Scotland - was named preferred bidder after offering 49.96% of its turnover, while Hermes Airports -Aer Rianta International, Bouygues Batiment and Vancouver airport authority YVR Airport Services - becomes second preferred bidder, with an offer of 33%.

According to Cyprus' Central Tenders Board financial considerations make up 70% of the bid evaluation process, while technical aspects account for 30%. The government hopes the winner of the tender will take up the 25-year build-operate-transfer contract by 2006.

Alterra's status as preferred bidder is likely to please Cyprus Airways Duty Free Shops, the current operator at the island's airports. The company has already stated its ambition to maintain its retail contracts at Larnaca and Paphos, and Alterra is the only consortium without a ready-made retail partner.