Hermes Airports on Friday announced that it has successfully concluded the financing arrangements for the Phase 2 development projects at both Larnaca and Paphos airports.

All necessary agreements with the financing banks were signed on the same day, marking a significant step forward in the expansion plans.

Additionally, an agreement has also been signed with the joint venture Bouygues Batiment International SAS and Iacovou Brothers (Constructions) Ltd, which has undertaken the construction of the Phase 2 works, as specified in the agreement signed with the government on December 23, 2024. 

Concurrently, following a selection process with the participation of the transport ministry, the company that will perform the duties of the independent engineer, monitoring the progress of the works based on the agreed specifications and timelines, has been selected.  

According to the announcement, the company is proceeding with the activation of all working groups, to formally initiate the Phase 2 work, which are expected to be completed in 30 months at Larnaka Airport and in 27 months at Paphos Airport.

At Larnaka Airport, the works will cover a total area of approximately 20,000 square meters and concern, among other things, the creation of a new annex with departure and arrival gates, which will be connected to the main terminal building.

Additionally, the plans include the addition of baggage claim belts, a new area for passport control and security clearance, the expansion of the commercial areas, as well as an increase in aircraft parking spaces. 

Likewise, at Paphos Airport, the work to be carried out will increase the capacity of the airport terminal by approximately 30 per cent, significantly improving the passenger experience and the efficiency of controls and procedures.

It also mentioned that at the same time, the southern parallel taxiway will be expanded, enhancing the operational flexibility of the airport. 

With the completion of Phase 2 works, the capacity of Larnaka Airport will reach 12.4 million passengers per year.

At the same time, the capacity of Paphos Airport will reach 5 million passengers per year, which will allow the seamless development of passenger traffic in the coming decades, with all the benefits that this entails for the economy of Cyprus.

Commenting on this significant milestone for the commencement of Phase 2, Hermes Airports’ Chief Executive Officer, Eleni Kaloyirou, said, “Today, we are moving forward with an investment by Hermes Airports, which exceeds €170 million.”

“This investment aims to upgrade both airports and enhance their capacity, ensuring they can effectively meet the needs of the new era, extending beyond the end of the current Concession Agreement period”, Kaloyirou added.

Meanwhile, following the environment department’s approval in early February, these expansion plans are set to incorporate significant ecological and community considerations.  

This green light was part of an agreement extending Hermes Airports’ management until 2033, which also resolved financial disputes and confirmed the onset of these major projects.

The expansion at Larnaca international airport, with an allocated budget of €95 million, aims to increase its capacity to 12 million passengers per year. 

Similarly, Paphos international airport will undergo a €75 million expansion to handle an annual throughput of 5 million passengers.