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Monday, September 27, 2021

The Republic of Cyprus won the arbitration with Hermes Airports for a difference of 140 million euros

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Success for the Ministry of Transport, Communications and Works, the Legal Service but also for the government in general, is considered the result of international arbitration with “party” Hermes Airports.

The Republic of Cyprus, with its coordinated actions, managed to justify itself at the international level, following an appeal against Hermes, the managing company of Larnaca and Paphos airports.

The decision concerned a dispute between the state and the company regarding the second phase of the contract between them.

In the written agreement between the two parties, it was foreseen that Hermes would proceed with expansion projects of 140 million euros, in order for the airports to be able to serve more people.

This position was disagreed with by the management company, which objected that it proceeded to the planned expenses for the improvement of software and other functions, in order to achieve the desired, that is, to serve more travelers.

When it became clear that the dispute was not bridging, the Ministry of Transport, Communications and Works, through the Legal Service, resorted to arbitration in London using the “fast track” method (short procedure) and was acquitted.

It should be noted here that there are other differences between the two parties. One of them concerns a condition in the contract, which provides for the manager to be compensated for the loss of passengers due to the illegal airport of Tympos.

Source: politis.com.cy

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