The Chairman, Board of Directors, Hermes Airports, Deputy CEO, Bouygues Bâtiment International, Christophe Petit, has revealed that a key ingredient in the success of the airport operator's success in Cyprus was a clear public-private sector division of roles.
Speaking to the camera for the recent 'Unlocking investment through Public-Private Partnerships (PPP)' International Summit in Nicosia, Petit discussed the concession of Larnaca and Paphos airports in Cyprus since 2001, highlighting a five-year process that raised €600 million in private financing.
Among other things, he also pointed out that the airports' traffic increased from 6 million to 12 million passengers, with significant commercial revenue growth.
The success is attributed to a clear public-private sector division of roles and mutual support during crises like COVID-19 and the Ukraine war, Petit pointed out.
He also talked about how government receives 33% of annual revenues, benefiting the country while challenges include rising construction costs, inflation, and environmental concerns.
Key to PPP success is a bankable project structure, proper advisors, and a balanced risk allocation between public and private sectors, Petit concluded.
The full interview can be viewed in the video below:
The 'Unlocking investment through Public-Private Partnerships (PPP)' International Summit in Nicosia, was organised by Invest Cyprus, the World Association of Investment Promotion Agencies (WAIPA) and World Association of PPP Units & PPP Professionals (WAPPP).
EY Cyprus is Gold Sponsor, Hermes Airports is Silver Sponsor, and the European Investment Bank is the Knowledge Sponsor.
