The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Government has "shifted" to a public-private partnership (PPP) model to finance "hundreds of millions of dollars in investments" for Family Island airports, a Cabinet minister said yesterday.

Dionisio D’Aguilar, minister of tourism and aviation, used the House of Assembly debate on new aviation legislation in a bid to dispel suggestions fuelled by the Opposition and other sections of the media that the Government has either slashed funding or cancelled critical infrastructure upgrades to various airports.

He said: “The Department of Aviation will utilise funding already in place from the IDB (Inter-American Development Bank) and secure the necessary additional funding via public-private partnerships to ensure these projects are able to be realised.”

Mr D'Aguilar added that additional funding for these projects has been secured from a local financial institution, but did not provide the name or details of how much funding has been procured. Tribune Business understands RF Holdings, the former RoyalFidelity Merchant Bank & Trust, was one institution that had offered to provide financing.

The minister said design work for Exuma's new airport has been completed, and the Government is in the “final stages” of approving a contract for a Bahamian firm to build a new terminal. The ground-breaking ceremony will be held within the next 90 days.

Mr D'Aguilar added: “I’ve engaged a best-in-class airport consulting firm that specialises in aviation PPP to identify the best partner for the management and operation of this Exuma International Airport project while under construction, and once it has been completed.”

Once the terminal is built, attention will then turn towards upgrading its runways and taxiways to develop them to a stage where they can accommodate larger aircraft.

As for Long Island, architects have finalised the design for the Deadman’s Cay airport, with construction expected to break ground in the 2021 second quarter. The new airport will have a 25,000 square foot terminal and fire station, and a 6,500 foot runway. Upon completion, the Deadman’s Cay airport will have regularly scheduled flights from North America or the wider Caribbean.

"The new airport in Great Harbour Cay in the Berry Islands is currently under construction and I'm advised is approximately 70 percent complete," Mr D'Aguilar said. “The project involves a 9,500 square foot terminal building and 4,600 feet of new runway. The project is expected to be completed within the next six months and ready for occupancy shortly thereafter.”

The Leonard Thompson International Airport in Marsh Harbour will receive $3m in repairs "inclusive of $1.5m in post-Dorian construction repairs". This includes air conditioning repairs and mould remediation work.

Mr D'Aguilar continued: “The Department of Aviation and the project implementation unit attached to the Ministry of Public Works are developing a project to rebuild the Treasure Cay airport through the $1.7m facility available from the IDB. This project will start as soon as the project details have been approved by the IDB.”

With regard to the North Eleuthera airport, Mr D’Aguilar said funding has been secured from the IDB and for this project. The Government intends to “duplicate” the Exuma International Airport via a newly-constructed runway that will allow it to receive larger aircraft and increased traffic.

The minister also said the Government, through the Airport Authority, is “very close” to acquiring Grand Bahama International Airport from Hutchison Whampoa and the Grand Bahama Port Authority's Port Group Ltd. Consultants will be hired to advise on how to redevelop the airport once the deal closes.

"The expanded footprint of our various Family Island airports has necessitated the acquisition of additional land from the Crown, the treasurer and private owners," Mr D'Aguilar said. "If it is the intention of the Government to use a PPP to develop these airports, then for the very first time these airports must be legally defined on the ground as such.

"So they have been employed, and have completed, the process of defining what specific land should be encompassed in a particular airport, taking into consideration future expansion. Specifically, the land acquisition process will include the following: For Exuma, 100 additional acres, expanding the total footprint to 1,010 acres.

“For North Eleuthera, 556 additional acres, expanding the total footprint to 658 acres. Deadman’s Cay, 665.19 additional acres, expanding the total footprint to 753.56 acres, and then the Leonard Thompson International Airport in Marsh Harbour, 2,485.87 acres.”