By YOURI KEMP

Tribune Business

Reporter

ykemp@tribunemedia.net

THE Grand Bahama Chamber of Commerce president says “we need to know something” as he questioned whether Grand Bahama International Airport’s newly-appointed Board has the necessary expertise to select a winning developer.

James Carey told Tribune Business he was unsure if Freeport Airport Development Company’s seven directors have experience in vetting bidders competing to finance, and transform, Grand Bahama’s main aviation gateway into a facility that will support the island’s future growth via a public-private partnership (PPP) model.

“I don’t know what the Board’s experience is with airports. Some of the persons on the Board I know, and they have business acumen, but we will see how it goes,” he said. “I note that the minister [Chester Cooper] did say this Board will play a pivotal role, and what I understood him to be saying was that they will be active once a decision has been made on the reconstruction of the airport.”

Several directors come from an aviation and airport background. While Terah Rahming has been named as chairman, she is supported by Peter Rutherford, the Airport Authority’s managing director; Cassietta McIntosh, an attorney; Elbert Hepburn, a businessman; Forrester Carroll, another businessman; Julian Sawyer, an engineer; Harold Williams, an airline executive; and an as-yet unnamed representative from the Tourism Development Company.

Chester Cooper, deputy prime minister who has responsibility for tourism, aviation and investments, said recently that the GB airport contenders have been reduced to three shortlisted bidders offering to invest between $50m to $150m in thje asset’s redevelopment. The difference in offer prices raises questions as to whether all three were bidding on like terms and conditions

Mr Carey, though, indicated he is not impressed with the current rate of progress at the airport, adding of Mr Cooper’s comments: “They said several months ago that they have narrowed the bidders down. We have been stuck there for months now.

“In any event, as these things go, the Board will get their brief from the Government so they will not be contrary to what the Government ultimately wants. Everything else is quiet over here. We just need some definitive words like when is it happening and what stage is everything at? Everything is always so quiet and behind the scenes. We need to know something.”

The creation of Freeport Airport Development Company suggests the Government is going for the same model as at Lynden Pindling International Airport (LPIA) with Nassau Development Company (NAD), where the airport was leased to the latter under a 30-year concession agreement that was subsequently extended. Vantage, NAD’s operator, was then responsible for raising the capital to redevelop LPIA and took over its operations.

The Davis administration will have to move quickly to select a winning bidder and create certainty around Grand Bahama International Airport’s future and redevelopment. Much is riding on this from an economic perspective, not least the Grand Lucayan’s sale and redevelopment, as Electra America Hospitality Group will want to know whether reconstruction will be sufficiently advanced in time for when the resort re-opens.

Referring to Mr Cooper’s recent remarks on The Bahamas needing more hotel rooms, Mr Carey said: “What are you doing about it? We need more things to happen, and more definitive words about what’s happening. I think that will relieve some of the angst of the business people on the island.”

The GB Chamber chief described the much-publicised battle between the Del Zotto family and the Grand Bahama Port Authority (GBPA), which has led to the former closing all their Grand Bahama business interests with the loss of 130 jobs, was “very unfortunate”.

“The Del Zottos are also expressing their disappointment over not getting permanent residency for some of their family members, too. That has now come out. So they are dealing with both the Government and the GBPA, and all of that is causing disruptions on the normal flow of business,” Mr Carey added.

“The matter between the Del Zottos and the GBPA comes down to an agreement that they had with aggregate, which was renewable. It’s a bit strange it came to that when there is quite enough aggregate to go around. All of this is just very unfortunate.”