Friday, February 12, 2021
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The government must change the Airport Authority Act to facilitate its acquisition of Grand Bahama International Airport, a Cabinet minister has revealed, adding that a deal “is so close I can feel it”.
Dionisio D’Aguilar, minister of tourism and aviation, told Tribune Business that the “location specific” nature of the Act requires it to be amended so that Grand Bahama’s primary gateway can legally be brought under its ownership authority and control.
“We’ve finished the negotiations; we now have to go through the mechanics of getting it done,” he disclosed. “We have an agreement, but the mechanics of the details are in the process of being completed and worked out.
“We have to change the law, the Airport Authority Act, to enable it to acquire that airport because that Act is location specific. It refers to specific locations, so we have to amend that Act to acquire the airport.”
Mr D’Aguilar declined to discuss the terms of the acquisition deal between the Government and the airport’s owners, Hutchison Whampoa and the Grand Bahama Port Authority’s (GBPA) Port Group Ltd, although this newspaper previously reported that the purchase price was $1.
In return, Hutchison and the GBPA will hand over responsibility for rebuilding and redeveloping the facility to the government while also retaining the Hurricane Dorian insurance proceeds.
Mr D’Aguilar said the two sides were now preparing legal documents and going through “the mechanics of transferring title”, adding that “tens of millions of dollars, possibly hundreds of millions of dollars” will be required to rebuild Grand Bahama International Airport as a critical piece in the country’s national infrastructure.
“The only thing we have to consider is that it would be madness to rebuild that airport using the same approach we’ve done in the past because every time we get a storm surge it wipes it out,” he told this newspaper. “It makes absolutely no sense to put the airport back the way it’s been done in the past.”
Dr Hubert Minnis yesterday said the Cabinet will likely discuss the Grand Bahama International Airport purchase this coming Tuesday. “My understanding is that all the paperwork is all completed and that will be brought to Cabinet on Tuesday, at which time Cabinet will deliberate on it,” he added.
“We are prepared at this time to take over and move the management team in place. Once the management is in place, then we will take over.”
Many observers believe that Hutchison and the GBPA, which own the airport 50/50 via the Freeport Harbour Company with the Hong Kong conglomerate holding management control, walked away from their obligations to rebuild the Dorian-ravaged facility in the storm’s aftermath.
Reconstruction costs have been estimated at $60m to reconfigure the airport and harden it against future storms. With the Public Treasury increasingly cash-strapped due to COVID-19, the Government is looking to a private-public partnership (PPP) to raise the necessary financing and construction/management expertise similar to the Nassau Airport Development Company (NAD) model.
Magnus Alnebeck, Pelican Bay’s general manager, while hailing announcements that an acquisition is close as “fantastic news” this week warned the Government that it must tackle Grand Bahama International Airport’s (GBIA) high costs if its prospective purchase is to “grow the destination”.
The resort executive said it was vital that such a key infrastructure asset, which acts as the tourism and commercial gateway to Grand Bahama, be owned by a proprietor that wanted to expand the island’s economy rather than an entity seeking to extract as much profit as possible from a diminishing customer base.
Arguing that the present ownership duo fell into the latter category, Mr Alnebeck said the airport “has to be better” than its post-Hurricane Dorian appearance of “a tin and some rusty chairs”. He added that airline connectivity at competitive costs and fuel prices was more important for the island’s revival as a tourism economy.
The present airlift situation, with the island being served by minimal carriers and flights, was described as unsustainable especially since ticket prices were more expensive between Miami and Freeport than those for the Nassau route.
“There has been the challenge with the operating costs at the airport that are generally passed on to airlines and passengers, and make it too expensive that no one wants to fly there,” Mr Alnebeck added.
“If this purchase happens it will be fantastic news, and then I hope they [government] find a solution as to who operates the airport as opposed to messing with the airport themselves. It’s a wonderful idea that the people of The Bahamas own the airport as opposed to a private company that wants to make money out of it.”
Comments
TimesUp says...
Can we not just give it to Vantage Airport Group and have a replica of the Nassau domestic terminal? I am sure the plans are knocking about somewhere and photocopies are cheap.
The only thing the Government should do is allow a management group to invest in and run the airport then focus all their attention on pleading the US to return preclearance.
This idea the airport has flooded in every storm is rubbish. It just needs some more elevation but it does not need to be a marvel of the most advanced architecture and design known to man.
Keep it simple and get it done in under 7 years please.
Posted 12 February 2021, 2:11 p.m. Suggest removal
Hoda says...
The airport did flood in hurricanes before Dorian, though
Posted 12 February 2021, 2:36 p.m. Suggest removal
proudloudandfnm says...
Freeport airport does not flood in storms. It flooded in dorian, no other. Frances sat on us for three days and our airport was open the day after it left. This nonsense about our airport flooding in every storm is just not true.
Posted 12 February 2021, 2:31 p.m. Suggest removal
Hoda says...
The airport did flood the hurricane before Dorian. How can u say that the airport doesn’t flood or make it seem like it’s a rarity when queens cove down the road from the airport has flooded almost every hurricane to hit the island
Posted 12 February 2021, 2:34 p.m. Suggest removal
proudloudandfnm says...
In what hurricane? The runway flooded during storms, not the airport. But the runway dries out soon as the storm passes. Flooding is not an issue at out airport...
Posted 12 February 2021, 5:15 p.m. Suggest removal
Hoda says...
Water was in the airport. It really doesn’t matter but I guess everyone else lying or incorrect.
Posted 12 February 2021, 5:54 p.m. Suggest removal
moncurcool says...
I guess they just decided to tear down the first airport and build another one just becasue they wanted to?
And I was in Freeport for both Frances and Jeanne.
That airport floods in all storms. Elevation is the issue.
Posted 12 February 2021, 3:54 p.m. Suggest removal
proudloudandfnm says...
They tore it down to make way for new buildings...
Posted 12 February 2021, 5:16 p.m. Suggest removal
ThisIsOurs says...
I dont live in Freeport, but I've heard about issues with flooding at or around the airport for a few years. Whether it was in the airport building or in the parking lot for an investor or a strategic thinker is immaterial. The risk is real that the airport could experience a major flooding event and the probability is high. Nobody investing millions to redevelop the airport should do so with whimsical thoughts of "*well it never flooded before*". It's coming. Prepare.
Posted 13 February 2021, 8:29 a.m. Suggest removal
Hoda says...
Yes, they need to get the airport, but please stop it with this tourism’s economy talk. Gb is not a tourist destination. The tourism product around here has been long dead - before Dorian. Everyone has forgotten the rotting princess and bazaar in the middle of town I guess. Fix the airport, when the tourist come what are they going to do buy rum and go back on the boat or in the hotel, rent a car then go look at borco tanks, I guess they can go to Lucayan national park. Fix the airport, I guess that’s all the investors waiting on. they are ready to throw the money on the ground soon as the airport finish.
Posted 12 February 2021, 2:44 p.m. Suggest removal
Hoda says...
If mr pelican bay manager says we can build a tourism economy that is more honest. But that would need to occur in lucaya go east or west end not the industrialized corners of Freeport. Y’all better pray carnival continues its plan to build that port out east. Isn’t life funny, before Dorian everyone was talking shit about carnival and allowing the plp to politicize that project now there is nothing for anyone.
Posted 12 February 2021, 3:07 p.m. Suggest removal
tribanon says...
COMMUNIST RED CHINA IS THE PUPPETEER ROYALLY SCREWING US WITH THE HELP OF THEIR MOST ACCOMMODATING WELL PAID PUPPETS, DOOFUS MINNIS AND HIS LOYAL WHITE-HAIRED POODLE D'AGUILAR. LMAO
Posted 12 February 2021, 3:26 p.m. Suggest removal
The_Oracle says...
GBIA flooded in Hurricane Frances, and then Dorian.
However, not as severely in Frances, and the old terminal was demolished post Frances.
The new (and now defunct) terminal was supposed to have been built much higher than it actually was, (28ft if I recall) Apparently St George cheeped out on the fill required and reduced its height above grade.
IF the Govt acquires the Airport, it should be turned over to NAD(or whomever it was who developed and runs Nassau airport) to run.
Carve the physical land area out of the Port Area.
I have little faith however in the Government abilities to get anything done. Everything they touch turns to crap or dies outright.
Either Party BTW.
Posted 12 February 2021, 3:32 p.m. Suggest removal
sheeprunner12 says...
Who will partner with the Bahamian Government to rebuild GBIA???????
Posted 12 February 2021, 7:01 p.m. Suggest removal
truetruebahamian says...
Hutchinson Whampoa must be rolling on the ground laughing at these gold and red governments. The property after should have been taken from them for lack of maintenance and llack of proper replacement. Then they should be charged for the upgrade and rebuilding costs.
Posted 13 February 2021, 10:40 a.m. Suggest removal
bogart says...
After major disaster events affecting revenues of businesses there is almost certainly Assessment Reports or various Reports by other names produced by these companies.
Hutchinson and the Port Authority, multi billion dollar entities would have reports done going back years on their Freeport Airport which would have made this to some official in the past govt and current govt. These major concerns in some File with technical data etcetc probably sitting on someone's desk and seems suppressed. These critical imputs from reports seems to have suppressed on numbers of occasions but resurfaces like when former Minister of Health Duane Sands who exposed failings of some 6.6 Million dollar Health Clinic on Cat Island, Palmetto some 27 Million dollar Hospital, failings of 18 Million dollar PMH computer system.
Over the years there just seems to be any Engineering Assessment Reports on any type on the Freeport Airport, except efforts by current govt to buy it.
Posted 13 February 2021, 6:38 p.m. Suggest removal
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