Cyprus Property News
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Latest developments on the Chinese investment in the old Larnaca airport


Discussions with the Chinese company Far Eastern Phoenix for the investment of 600 million euros in the old Larnaca Airport terminal building are stack in ministerial committee's discussions and of course the decision of the Attorney General. The ministerial committee will hear back from the Attorney General what is his position on the issue of  the lease of the old airport  for 50 years instead of 19 that was originaly signed with Hermes.

The Attorney General's decision is that the tender procedure for the old airport was not appropriate and therefor there is a need for a new tender contest. The Hermes Company believes that the whole process was correct and was concluded after a long process of discussions and contacts for almost one and a half year. On the other hand they point out that they will respect whatever decision will be taken by the state.

The Cyprus Investment Promotion Agency CIPA, expresses its dissatisfaction and frustration about the way the government handles the issue says its president Mr Christodoulos Angastiniotis. Specifically, the head of the agency notes that attracting investment during these difficult times is vital for the economy, and has requested a meeting with the President Mr Christophias, in order to analyze the data they hold at hand. Moreover, the CIPA believes that it is not the time to loose investments and that we should make all the right moves to finally facilitate the investment by the Phoenix Corporation. However, a source close to the government said that things are not as simple as they seem and that the public is not aware of all possible parameters of this potential investment. "Urban issues, legal issues including environmental protection parameters are far from insignificant to proceed with an investment without serious investigation," was added by a well-informed government source.