Filenews 27 July 2021
Validation of the decision of the Republic of Cyprus to reject a request by Hermes Airports Ltd. to postpone its contractual obligations in relation to the 2nd Development Phase of Larnaca and Paphos Airports, decided a Committee of Experts based in London, in the framework of a Rapid Dispute Resolution Procedure initiated by Hermes Airports Ltd. against the Republic of Cyprus , under the Concession Agreement for the Development of Larnaca and Paphos Airports.
The Committee of Experts, following a hearing, decided that Hermes Airports Ltd. had no right to defer its contractual obligations in relation to phase 2 of airport development. Hermes Airports Ltd., around July 2017, requested the indefinite postponement of its obligation to build Phase 2 of the Airports. The Republic, through the Ministry of Transport, Communications and Works, as the competent Ministry, rejected this request because this was not in accordance with the provisions of the Concession Agreement. In January 2021, Hermes Airports Ltd. initiated the Rapid Dispute Resolution procedure provided for in the Concession Agreement.
The Committee of Experts, chaired by Mr Hon. Lord Dyson, rejected all of Hermes Airports Ltd.'s claims and its related claims, and after taking into account that Hermes was the party to the case and acknowledging that the Republic acted reasonably, by decision of 13 July 2021, awarded the Commission's costs to the Republic.
