MORE waves have been created for the BOT deal between the government and an international consortium for the upgrade and running of the two airports, as a second rejected bidder has complained to the European Union.
The Alterra-Cybarco consortium, the initial preferred bidder, has complained to the EU about the procedures followed in negotiations and the awarding of the contract. The consortium claims 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.
Talks between Alterra and the government broke down last summer, and by default the contract was awarded to Hermes, which came in second in the government’s evaluation. After months of deliberations, the deal with Hermes was reportedly ready to be signed, with the competent Communications Ministry saying it was putting the finishing touches to it.
But the government’s plans for a swift conclusion were derailed when the J&P-led consortium, one of the rejected bidders, charged that the procedures had been tailor-made to suit Hermes’ bid and disqualify all its competitors. The EU department dealing with state procurements next made formal inquiries, to which the government responded with a blow-by-blow account of the deal.
Communications and Works Minister Harris Thrasou played down the gravity of the interest shown by Brussels, saying he was confident the government could prove its case. Meanwhile more controversy erupted as media reports said the government gave too many concessions to Hermes; the concessions were allegedly made with a view to keeping running costs low by lowering standards at the airports.
Now Alterra, represented by Cybarco, has asked Brussels to look into the matter, putting even more pressure on the beleaguered administration. Even though the Communications Ministry has not yet been asked by the EU for clarifications, it is reportedly already preparing its answer to Cybarco’s accusations.
Last week, the Communications Ministry dismissed a request by Alterra that the deal be killed. And about a month ago Alterra had reportedly suggested to the government that it negate the deal with Hermes and instead resume negotiations with it. Again, this idea was rejected.
The multi-million pound contract has turned into a war of many fronts: the government is also engaged in a legal battle with J&P in Cyprus courts. J&P also wants to freeze progress in the deal.
The administration is backed in a corner, as the terms of the tender dictate that it cannot reject more than one preferred bidder once negotiations actually begin. So the Hermes consortium is its last choice.
Certainly a great deal is at stake, as the BOT agreement is worth an estimated £2 billion in revenues over a 25-year period, after which the selected consortium will hand back operation of the airports to the government.
