Changi consortium fails in Cyprus airports bid

Print Article E-Mail Article

Cyprus will now look to Hermes after the preferred bidder Alterra reportedly failed to renew its bid by a July 22 deadline

Talks between Cyprus and Alterra Partners over a contract to part-privatise the airports of Larnaca and Paphos have failed, according to a Reuters report citing a Communications Ministry source.

"Alterra did not renew its business proposal within the designated deadline so it means negotiations have stopped," the source told the news agency.

Alterra, which includes Bechtel, Barclays Private Equity and Singapore Changi Airport, was declared preferred bidder for the 25-year build-operate-transfer contract last November. The value of the deal has been estimated at over C£200m ($425m).

The Cypriot government is now likely to seek authorisation from an independent tenders commission to open negotiations with Hermes Airports, the runner-up in the selection process. Hermes includes Irish carrier Aer Rianta, Vancouver operator YVR Airport Services and construction firm Bouygues Batiment.

Alterra missed an initial deadline of July 5 to renew its financial guarantee for the bid, but the authorities waited until July 22, the deadline for the consortium to renew its business proposal, to announce that talks had failed.

No reason has yet been given by either party for the reported failure. An Alterra Partners spokesman was not immediately available to confirm the report.