The Tribune

Dear Editor,

I have been gratified by the growing realisation that Grand Bahama International Airport is an essential instrument, and critical, to the rehabilitation and revitalisation of the Grand Bahama economy.

Without this our industrial plant will wither and die, and our efforts to revive the tourism sector will fail. It has even been said that without an international airport, Grand Bahama will become another Andros.

Aside from the obvious need for an immediate "Marshall Plan" for the rehabilitation/rebuild of the 4,000 Freeport homes, and the schools, made uninhabitable by Dorian (more on that later), the most urgent and critical need is for the rebuilding of Grand Bahama International Airport - which needs to commence immediately.

The building of a new airport terminal in the shortest possible time is of prime importance to the reconstruction of Freeport, specifically to the plans at hand (pre-Dorian) for the revitalisation of the tourism product via the Carnival cruise port and the Royal Caribbean/ITM harbour and hospitality investments that include the re-opening of the Grand Lucayan hotel. These plans and goals are unattainable without the airport.

For the reasons mentioned above, I would submit this airport is in the nature of an essential service to Grand Bahama and the Bahamian people. But this issue has become more complicated because of the players involved. Hutchison Whampoa is the 50 percent owner of the airport with management control, while the Port Group (the St George and Hayward families) are the other 50 percent owners.

Historically, Hutchison certainly understood the critical need for the international terminal when, in 2004, the double hurricanes of Frances and Jeanne meant the airport terminal had to be rebuilt. The story is that their 50 percent partners, the Port Authority, (then Edward St George and Sir Jack Hayward) put up their hands and said that they did not have the money. Hutchison had to find the money, the port's share being some $20m, which was advanced by Hutchison to the Port Group as a loan.

Hutchison did collect the loan some years later out of a hurricane insurance settlement, but this is one of the reasons why relations between Hutchison and the families have cooled ever since.

Fast forward to today, and the airport terminal is again a disaster. Hutchison's willingness to re-invest once again is likely to have evaporated, while the families will no doubt again put up their hands and say they have no money.

We can be sure that Hutchison will not come to the rescue this time, as they may well wish to exit Grand Bahama in any event, and they have shown - especially since the Grand Lucayan debacle - that they have no empathy for Freeport or Bahamians at all.

I submit that the families and Hutchison Whampoa have a legal and moral obligation to ensure the preservation, protection, development and repair of the city to particularly include its residents and investors.

And we may yet be saved as the families do have money. The Carnival cruise port deal (Heads of Agreement signed on September 25) has not yet closed, which means that the proceeds from selling the real estate at Sharp Rock to Carnival (by some estimates at least $30m) have yet to be paid to the Hayward and St George families.

The families will argue that Sharp Rock is not a Port Authority asset, as it is owned by them personally, but I would submit this is a specious argument given the obligations of the families to Freeport under the Hawksbill Creek Agreement (HCA) and their own substantial interest in saving Freeport and thus themselves.

One would hope they would readily agree that these funds be used for the airport rebuilding. But I doubt it. I would respectfully suggest that the Government should immediately commence talks with the Port Authority (the families) and obtain from them the following:-

1. That the families and Hutchison both agree that the airport insurance proceeds be fully used in the rebuilding of the Terminal on an urgent basis.
2. That the families immediately produce their own economic and action plan for the revitalisation and rehabilitation of the City of Freeport to include the airport, which probably will assist the government in its own Master Plan in this regard.
3. Specifically, the families must agree to sequester, escrow or dedicate the Sharp Rock funds necessary to finance the shortfall of cash to insurance proceeds needed to design and build a new international (and local) terminal at the very earliest opportunity.

I submit that if the Sharp Rock monies cannot be used, then it is the Port's problem to find the funds. They can mortgage or sell their one-half ownership of the very lucrative Grand Bahama Harbour Company, Grand Bahama Utility Company (the water company) and their interest in the Sanitation/garbage company/LUSCO.

The airport terminal is an absolute priority. I should note here that if Hutchison and the families readily agree to earmark funds for the airport terminal, and commence reconstruction, then my fears will have proven groundless and I apologise.

As an aside, if this issue is not quickly resolved, I believe the government would be entitled going forward to receive copies of the audited statements of these public services companies, including the Harbour Company, the Grand Bahama Utility Company and Sanitation (Garbage) company as being essential services to the Bahamian public.

Yours sincerely

TERENCE GAPE

Freeport resident

and senior partner,

Dupuch & Turnquest

PS:. There is much talk of the government or an investor such as Royal Caribbean purchasing the airport from Hutchison and the Port Group. This would be very good, but unless this can happen quickly we need to get the parties ultimately responsible to do the right thing and act now.