by Yiannis » Wed Jul 06, 2005 2:22 am
EU probe could put back airport to 2013
By Stefanos Evripidou
CYPRUS could wait another eight years to see the much-needed upgrade of its two airports, Paphos and Larnaca, as the European Commission begins its investigation into allegations of faulty negotiation procedures.
The government has adopted a ‘wait and see’ policy on the signing of an agreement to upgrade and run the island’s two airports with the Hermes Consortium, as it faces three fronts from the Commission, the preferred bidder Hermes and the Tender Review Board.
Communications and Works Minister Haris Thrasou yesterday met informally with Bertrand Carsin, Director of Public Procurement Policy at DG Internal Market.
The Commission official is in Cyprus on invitation from the Auditor General to participate in a seminar. He requested to see Thrasou for a “friendly meeting”.
Thrasou told the Cyprus Mail that he used the opportunity to put the government’s position across on the procedure to select a consortium to run the airports.
The Commission is investigating complaints by two rejected bidders, the Alterra-Cybarco consortium and a J&P-led consortium, about the procedures followed in negotiations and the awarding of the contract to international consortium Hermes.
Alterra claimed the government is now negotiating with Hermes certain terms of the initial tender that had been non-negotiable during its own negotiations with the administration last year.
J&P charged that the procedures had been tailor-made to suit Hermes’ bid and disqualify all its competitors.
According to Thrasou, the Commission investigation could go on for months, as the paperwork was plenty.
Meanwhile, pressure is growing from Hermes to sign an agreement. Hermes warned that if the government delayed in signing they would seek re-negotiation of the contract as prices on fuel, asphalt and cement have risen while the banks are waiting to release £500 million currently on hold.
“We cannot wait months, Hermes is threatening to re-negotiate,” said Thrasou. He added that the government had received legal advise from three quarters, Cypriot and international lawyers and the Attorney General, all saying that the government could go ahead and sign the agreement.
However, asked if it would sign a deal with Hermes while the Commission was investigating, the minister refused to be drawn in, saying, “The government is monitoring the situation closely and will take the necessary action.
“We are facing three fronts right now: the European commission, pressure from Hermes, and the Tender Review Board which will take a decision tomorrow (today) on the matter.”
The Tender Review Board will rule today on a complaint filed by Alterra on the tender process.
“If the Commission adopts the view of one of the rejected bidders, we must start the tender process from scratch. This could take another four years and four years to build. We won’t see the new airports until 2013,” said Thrasou.
The government seems to be between a rock and a hard place as the Commission report is not due for months, while Hermes is piling pressure to sign on the dotted line and the rejected bidders have launched their own campaigns to overturn the government’s decision in favour of Hermes.
One of the reasons i hate the present goverment.They dont seem to be able to do anything right.