The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

THE Bahamas Government has purchased Grand Bahama International Airport, finally acquiring ownership of the most substantial privately-owned and operated airport in Freeport, with an 11,000ft runway – for $1.

At the official contract signing held at the airport yesterday Prime Minister Dr Hubert Minnis indicated the government will invest $1.5m for some initial rebuilding and repairs at the airport and its Control Tower. He also said the jobs of the 60 airport employees are secured.

Also in attendance was Minister of Tourism Dionisio D’Aguilar, who noted the airport acquisition will put the number of airports owned in The Bahamas by the government to 30.

“Freeport is probably the last large or substantial airport in the Bahamas that was not owned by the government, and this Minnis-led administration is of the view this airport, the gateway into Grand Bahama, should be owned by the government,” he said.

GBIA was owned and operated by the Freeport Harbour Company, which is part of Hutchison Port Holding of Hutchison Whampoa Group. The facility sustained extensive damage during Hurricane Dorian in September 2019.

The Bahamas Airport Authority will officially take over the airport in May, said Dr Minnis, who revealed that a Special Purpose Vehicle or SPV, which is known as the Freeport Airport Development Company Ltd, has already been formed by the Office of the Attorney General.

“I am pleased to announce today that we are delivering on our commitment to purchase the Grand Bahama International Airport. Through the Airport Authority, The Bahamas owns 29 other airports, all at various stages of development,” he said. “While this Airport in Grand Bahama was almost completely destroyed by Dorian, our commitment is steadfast in the rebuilding of the Grand Bahama International Airport as a world-class facility.”

According to the prime minister, plans are to develop a modern facility that is designed and built to be resilient and meet the weather conditions that are experienced during the frequent storms that affect Grand Bahama. He added the new facility will also enable the return of US pre-clearance.

Referring to the current 63 employees of the Grand Bahama Airport Company, Dr Minnis stated that through the purchase, the government ensured that all who want to be would be properly engaged by the Airport Authority, with the appropriate compensation packages.

With the official turnover date slated for May 31, he said the contracts to the employees being re-engaged will be issued during the week of May 24.

He confirmed the Request for Proposal (RFP) for the redevelopment of the airport is underway, and will be issued in the next three months.

Dr Minnis stated the government has engaged International Consultants Leigh Fisher to be transparent in the redevelopment of the facility, and in awarding a contract to a new management partner.

“We are pleased that there is high interest in the airport development and continue to receive many inquiries for the redevelopment of this airport, he said.

He revealed at least five Bahamian entities have already approached the Government to be on PPP for the facility before the release of the Request for Proposal.

“The redevelopment of this facility will result in a turn-key operation, inclusive of design, financing, and construction, utilizing local talent for a state-of-the-art facility for Grand Bahama. Final costs are not yet determined and will be driven by the RFP process, Dr Minnis said.

“Our expectation is that our partners, working closely with the Government under a public-private partnership arrangement (PPP), will bring the resources to the table without the Government having to inject any significant capital other than the facilities we are purchasing today.”

He said that the expressions of interest should be responded to via the RFP that will be released by the Department of Aviation. There will be no negotiations before the recommendations of the selection committee.

Pending the redevelopment of the airport – which spans 2,500 acres, Dr Minnis said the government will invest approximately $1.5m to rebuild the Customs Warehouse, carry out the elevator and structural repairs to the Air Traffic Control Tower, and secure office space for the Airport management team and airlines.

He further revealed the Special Purpose Vehicle or SPV, which is known as the Freeport Airport Development Company Ltd, will source the financing. Additionally, passenger facility and other user fees, as well as the revenues to be generated in operating this facility, will service the debt of the Company, he added.

“In many ways, this will almost mirror the current business arrangement that exists with Nassau Airport Development Company and Lynden Pindling International Airport where that facility has little to no cost to the people of The Bahamas,” the Prime Minister said.

“We are paying the Freeport Harbour Company $1 for this airport facility. Additionally, we are paying approximately $1 million to assist in staff severance costs,” he said.

The Freeport Harbour Company has invested $1.6 million to convert the Fixed Based Operation or FBO into a new temporary terminal and has been subsidizing the monthly operating costs of this facility. After the transfer date, and until the new PPP is identified through the RFP process, Dr Minnis said the Government has committed to continue to carry these costs.

Speaking on the hotel sale in Grand Bahama, the prime minister said they are committed to ensuring the continued revitalization of the Grand economy.

“Grand Lucayan Hotel is evidence of our full commitment to this island, he said. We did not allow the Grand Lucayan to permanently close and purchased the hotel with a view to handing it over to a purchaser with a plan to revitalize this island’s tourism product,” he explained.

Dr Minnis stated that they delivered on their promise and signed a Purchase Agreement with Royal Caribbean Cruise Lines and the ITM Group.

“We are in the process of finalizing this deal and hope to return soon for the full turnover of the hotel. This airport will play an integral part in the success of that overall development,” he added.

“Royal Caribbean and Carnival have announced and will move forward on the development of their port project once COVID is behind us and cruising returns. Critical to all of this is the redevelopment of your international airport. This redevelopment will significantly boost stopover arrivals to Grand Bahama,” he said.

Sarah St George, acting chairman of the Grand Bahama Port Authority, also brought remarks, recalling that the airport’s long history dates back to 1958.