The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

FAMILY Island Chamber presidents yesterday said “the rubber has hit the road” on critical infrastructure upgrades as they hailed the Government’s move to invite private sector bids on 14 airports.

Thomas Sands, Eleuthera’s Chamber of Commerce president, told Tribune Business that upgraded airport facilities were “critical to the success of the island” given that it was attracting increased visitors and foreign direct investment (FDI) from its southern tip all the way north to Harbour Island.

Three Eleuthera airports - North Eleuthera, Rock Sound and Governor’s Harbour - are among those included in the 14 for whom the Government will this Wednesday seek private partners for their redevelopment, upgrade, financing and management via public-private partnership (PPP) agreements with the winning bidders.

North Eleuthera and Governor’s Harbour are identified as ‘Tier One’ airports, placing them among the largest and most important Family Island airports, while Rock Sound is one level below in ‘Tier two’. Mr Sands added that Family Island infrastructure, and not just airports, must “be on par” if the country is to grow its economy beyond Nassau and attract both foreign and Bahamian investors.

Meanwhile, Daphne Degregory-Miaoulis, Abaco’s Chamber of Commerce president, said she was grateful that the Government’s PPP initiative is “putting focus” on three Family Island airports rather than just Leonard M. Thompson International Airport in Marsh Harbour. Also included are both Treasure Cay Airport and Sandy Point International Airport, both of which are included in ‘Tier Three’.

Both these facilities are currently only open to private planes and charters. While Sandy Point’s inclusion may be linked to the recently-approved $800m Kakona project, targeted at a nearby location in south Abaco, Mrs Degregory-Miaoulis’ husband, Nicholas, said reviving Treasure Cay’s airport will “put Abaco back on the map” for stopover visitors including second homeowners.

“If you flew into Marsh Harbour, and Treasure Cay is your final destination as a second homeowner or resident, it’s a 45-minute ride,” Mr Miaoulis said. “Taxi drivers charge $120 to go to Treasure Cay. That’s a deterrent. It’s important for Treasure Cay. We need Treasure Cay to put Abaco back on the map. That will benefit people in the north, that will benefit people in central and south Abaco.”

Mrs Degregory-Miaoulis argued that, given its importance to the island, Treasure Cay should be a priority for the Government and at least be placed in ‘Tier two’ rather than ‘Tier three’. Her concerns echo those of Molly McIntosh, general manager of The Bluff House Beach Resort and Marina in Green Turtle Cay, who previously told this newspaper that Treasure Cay’s airport needs a new terminal to help attract extra flights.

“It’s not killed us but it’s hurt us, and a little investment would go a long way. There’s no terminal, and Customs and Immigration have to work out of a trailer,” she said then. “I feel strongly, because I have been here a long time, and know there will be a return on investment. They don’t need to do an airport like Marsh Harbour where they spent millions of dollars; just hand us a terminal that’s clean and we’ll take care of it.”

Mrs Degregory-Miaoulis added: “I was speaking to some importers and Customs agents on the port in north Abaco, which we always thought was an extravagance and not functioning. Apparently that port has been very beneficial to the rebuild of homeowners in Treasure Cay, and it will be the same situation with the airport. Frankly, Treasure Cay needs it. It will be much easier to fly in and out.”

The Ministry of Tourism, Investments and Aviation, in a statement yesterday, confirmed that 14 Family Island airports will be included in the bidding process set to launch on Wednesday, March 1. The Government is seeking private sector investors to redevelop, finance, operate and manage these facilities under 30-year PPP leasehold concession agreements similar to that for Lynden Pindling International Airport (LPIA).

Besides the three Abaco and Eleuthera airports, the other eight include Exuma International Airport (Tier one) as well as Staniel Cay, Black Point Airport and Farmer’s Cay. Bidders have an option to “bundle” or submit a collective offer for all three, which are listed in ‘Tier three’, rather than just one.

The remainder include Long Island International Airport (Tier two); Congo Town Airport (Tier three) in south Andros; and San Salvador International Airport (Tier one). New Bight International Airport is in ‘Tier two’, with the latter two airports located in the Prime Minister’s constituency. The four Exuma airports are based in the constituency of Chester Cooper, deputy prime minister and minister of tourism, with the island seeing significant investment activity in its cays.

Mr Cooper, who has ministerial responsibility for the PPP initiative, said in a statement: “Investors’ interest in The Bahamas’ airports infrastructural projects is an indication of the global confidence in The Bahamas as a destination, especially after 2022 foreign air arrivals and overall seat capacity soared towards, and in some cases, exceeded the historic pre-pandemic levels.

“This move affirms the national priority and commitment of the Government to aggressively address the state of The Bahamas’ airports infrastructure to support ongoing economic development.” Dr Kenneth Romer, acting director of aviation, said the latest PPP release builds on the tender issued last year for Grand Bahama International Airport.

“This next phase is considered a continuation and expansion of this initiative designed to drive traffic, improve operational efficiency, grow revenue and enhance the quality of service in the targeted airports,” he added. As with LPIA, the Government will retain ownership of the airports and their real estate while leasing them to the winning private sector bidder.

The PPP process will begin on Wednesday with the release of the qualifications document and Project Information Memorandum (PIM) via the Department of Aviation’s website https:// doabahamas.com. All interested parties are required to access the documents through the website to ensure that they receive all addendum and communication from the Government with respect to this process.

Shortlisted parties will be invited to participate in the Request for Proposal (RFP) stage, which is tentatively scheduled to be released in May 2023. “It’s critical to the success of the island,” Mr Sands said of upgrading the Eleuthera airports. “Infrastructure is a problem here. If we are going to grow our country, and grow the development of foreign direct investment as well as domestic investment, the infrastructure has to be on par.

“Right now, it’s not only the airports. We have a lot of challenges with infrastructure across the board,” he added, likely referring to Eleuthera’s much-publicised water and energy woes. “The airports are significant to airlift as well as doing business. I think there’s an international standard that’s expected. There are international requirements, and if we are going to be successful in terms of development here, we must meet those standards.

“In the process, we want to be mindful that we want to engage Bahamian investors and domestic participants in these opportunities. There’s a lot of investment throughout Eleuthera. There’s a significant amount in the south, a significant amount that extends into the north. There’s a significant amount of foreign direct investment taking place that needs to be serviced,” Mr Sands added. “I think the rubber has hit the road in terms of our need.”

Enhancing the Family Island airports will provide for better airlift and transport connectivity, enable these facilities to accommodate increased flights and visitor numbers, and offer an improved first and last impression of The Bahamas for tourists.

Mrs Degregory-Miaoulis added: “I think it’s very important that they upgrade Marsh Harbour airport, which has had issues since inception. I’m happy to say they finally appear to be maintaining it better than they have in the past three years. It’s very important. We’re a boating island, but are as much an air arrivals tourist market.

“I’m happy they’re putting the focus on the three airports in Abaco, not just the one. Abaco is a long island. It’s 45 minutes at least from Marsh Harbour to Sandy Point, and the better part of about an hour to 45 minutes to Treasure Cay.”