"Nassau Airport Upgrade Could Cost $400 Mil"

Monday, April 2, 2007

Airport Upgrade Could Cost $400 Mil
By Macushla N. Pinder 
The Bahama Journal


A final price tag has yet to be worked out, but redeveloping the country's
main gateway into a premier world-class facility could run into $400
million, according to Prime Minister Perry Christie.

He indicated that the government has determined how that money would be
generated. 

According to Mr. Christie, it is envisioned that the Nassau Airport
Development Company (NAD) will be able to - without government guarantees -
finance the capital costs and operation of the airport, as well as assume
the current debt of the Airport Authority (AA) from a passenger facility
charge.

This would be collected in addition to airport fees and revenue generated
from rentals and concessions, he said.

The prime minister further explained that the Authority would also implement
a security fee, which has been instituted at airports worldwide to meet the
cost of security services.

"The initial passenger facility fee (PFC) will be $15 per departing
international passenger and $5 per departing domestic passenger. The PFC
will be utilized for capital works and other uses as permitted under the
International Civil Aviation Organization's (ICAO) policies for airports and
air navigation services," Mr. Christie said.

"The security fee will be set initially at $7 per passenger departing the
airport."

The prime minister made such announcements while bringing the keynote
address Friday at a ceremony marking the official transfer of the operation
and management of Lynden Pindling International Airport to North America's
leading global airport investment, management and development company,
Vancouver Airport Services (YVRAS).

That move follows the signing of a 10-year, $225 million agreement between
the government and YVRAS last October.

Under the arrangement, NAD, a wholly owned subsidiary of the Authority, will
be responsible for the daily operation of Lynden Pindling International
Airport.

The Authority will assume responsibility for operating five other airports
beginning with the Marsh Harbour airport, reportedly the third busiest in
the country.

NAD in turn has signed a contract that will see YVRAS take over the daily
operations of LPIA within 60 days.

According to the prime minister, the construction and management of LPIA
will be carried out in two phases. 

Phase I will start immediately and is scheduled to be completed within 24
months, he said.

During that phase there will also be the execution of "high priority'
projects such as improving the physical and sanitary conditions of the
airport, alleviating the congestion associated with US pre-clearance,
alleviating parking conditions and airside congestion, managing adequate
check-in spaces for additional air traffic growth, facilitating increased
group travel and minimizing and streamlining passenger security checks.

Mr. Christie further explained that YVRAS has also been hired for the next
60 months as the project manager for Phase II at LPIA.

Phase II will include the design and construction of new or upgraded airport
terminal facilities and related infrastructure.

Officials say that phase will be undertaken in four stages, the first
focusing on the design, construction and opening of a new US pre-clearance
building.

Stage II and III will cover the design, redevelopment and opening of the US
and international arrival facilities and international and domestic
departure facilities respectively.

Improvements to the general areas and also landscaping will be carried out
throughout those stages, the prime minister said.

"YVRAS has assured that they will foster relationships based on years of
experience in Canada, with US Customs and Border Protection, the TSA and the
relevant Bahamian airport authorities in accordance with the best
international practices," he said.

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