ART • CULTURE • SPORTS
Myth-Busting the Airport Redevelopment Project
MYTH: The airport will be owned by a Canadian company.
FACT: Bermuda will always retain full ownership of the airport; we are
not giving it, or the land it sits upon, away. Under the proposed agreement, Project Co will build the new airport and manage it for a ;xed
period of 30 years. Project Co will be a Bermudian company owned
by investors (international/private and institutional), operated with
a majority of Bermudian managers and employees and regulated by a
Bermuda government quango.
MYTH: Bermuda will lose the airport’s revenue.
FACT: Revenues generated by fees levied on users of the airport will go
towards constructing the new airport, operating expenses and repaying lenders. More speci;cally, airport revenues will be used to pay for
development, ;nancing and construction of the new terminal and other
facilities, airport sta; salaries, operations, maintenance, future airport
developments and to pay back lenders.
MYTH: The project should have been put out to tender.
FACT: A tender process is long, expensive and o;ers no guarantees of a
bid being received. Internationally, airport projects with fewer than one
million passengers don’t typically go out to tender given the high devel-
opment costs and low level of appeal to that market. Passenger tra;c
in Bermuda has averaged fewer than 250,000 arrivals per year over the
past ;ve years. Bermuda’s collaborative government-to-government ef-
fort used the leading-edge knowledge and expertise of the private sector
at the earliest stages of project development, and has created a tailor-
made solution for Bermuda that incorporates many more important
elements than a traditionally tendered approach ever could, including a
strengthened bilateral relationship with Canada.
MYTH: There are other options that haven’t been considered.
FACT: ;e government of Bermuda compiled an options analysis
to demonstrate the project’s value for money. ;e other options that
have been ;oated involve substantial investment and/or borrowing
for Bermuda. ;is would increase the national debt or mean Bermuda
would be taking on huge ;nancial and construction risks. Historically
Bermuda has su;ered signi;cant cost overruns on large construction
projects procured through traditional means.
MYTH: Funding this airport will increase Bermuda’s debt.
FACT: ;e Bermuda government’s agreement with Canadian Commercial Corporation (CCC) means the amount owed to lenders will
Rendering of the
new airport plan