The Republic of Cyprus is served by two major airports, Larnaka (opened in 1975) and Pafos (opened in 1983), situated at the eastern and western extents of the island respectively. After 20 years of operations of the original terminals it was recognised in 2002 that these were getting to the end of their useful lives and were fast running out of capacity. To address this issue the Cypriot government began looking for a suitable concessionaire to design, build and operate two new terminals – one at each airport – as well as undertake the operation of the airports themselves.
We were appointed by a consortium of lenders to undertake due diligence on the proposed development and operations at the two airports. Throughout the due diligence process we provided assistance and technical advice to the lenders in their consultations with the potential concessionaire, including reviews of the new terminal plans, opinions related to potential air traffic levels, and assistance with regard to the project contracts so as to best protect the interests of the lenders.
With the help of our inputs the project reached financial close in May 2006. Post financial close we continued in the lenders’ technical advisory (LTA) role throughout construction, this phase of our role culminating with the opening in November 2008 of the new terminal in Pafos, capable of serving an estimated 2.7M passengers annually, and a year later, the new 7.5M passenger Larnaka terminal.
Since the terminals became operational we've been retained as LTA, performing an ongoing operational monitoring role. Larnaka Airport has a throughput of around 5M passengers per annum, whilst Pafos serves 2mppa.