The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Grand Bahama's Chamber of Commerce president says he expects the Government’s purchase of Grand Bahama International Airport could be announced by the month's end.

Gregory Laroda told Tribune Business he has been assured negotiations with the current owners, Hutchison Whampoa and the Grand Bahama Port Authority's (GBPA) Port Group Ltd, are progressing and he’s “waiting to see some public announcement on that soon. Soon as in by the end of the month".

"The price tag I heard being discussed was a minimal fee. My original thought was we really shouldn't pay them anything other than what is legal to buy it, maybe $1 or some other nominal cost," the GB Chamber president added.

However, Dionisio D'Aguilar, minister of tourism and aviation, yesterday gave no timelines or specifics on the airport talks other than saying the Government remains "interested" in acquiring a key infrastructure asset whose rehabilitation is vital to Grand Bahama's efforts to rebound from the twin blows of Hurricane Dorian and COVID-19.

Mr D’Aguilar also spoke about the government’s intent to purchase the Grand Bahama international airport and said that while the government does not have a specific date to have the deal finalised with the airport’s current owners, it is still “interested” in purchasing the airport.

"I say this all the time that the acquisition of that airport by the Government isn't going to necessarily solve all of the problems in the short-term," Mr D'Aguilar said. "That airport needs a lot of investment of at least tens of millions of dollars. So the Government has to identify how best to do that.

"We are using public-private partnerships in the development of our airports. Our airports need about $250m of investment. And there's no way that the state can do that on its own, so we are going to have to use public private partnerships."

He added that this would involve incentivising investors to provide capital and upgrade "our infrastructure in much the same way as we're doing in the cruise port of Nassau, but to enter into partnerships to bring about the development of these important infrastructure port-of-entry locations in the country".

The original structure for the Government's Grand Bahama International Airport purchase involved paying a token $1 to Hutchison Whampoa and the GBPA. In return, the Government would take on the task of rebuilding - and potentially redesigning and relocating much of - a facility that was devastated by Hurricane Dorian's storm surge.

Tribune Business understands that the reconstruction price tag is around $60m, but in return for such a low purchase price for an asset that has never generated a profit, Hutchison Whampoa and the GBPA were allowed to retain the Dorian insurance proceeds.

Grand Bahama International Airport, while now functioning, has a dilapidated and rundown feel that is far from the 'welcoming gateway' look required to revive the island's flagging tourism product and support investments such as ITM/Royal Caribbean's proposed Grand Lucayan acquisition.

Mr Laroda, speaking to that deal, and the negotiations with the Government that have dragged on, said: “I'm sceptical as to whether something is actually going to open or not, but I would at least like to hear an announcement that they’ve completed this part of the negotiations and we will be looking to handover the keys and receive some money or something like that.

"Then that'll be moving in the right direction. Obviously the COVID-19 pandemic of 2020 set it further back. But, when all of this COVID-19 is under control, The Bahamas is still going to be the number one cruise destination in the Caribbean. Folks are still going to want to come here."

As for the Balearia ferry service's return to Grand Bahama, which will begin next week, Mr Laroda said: “I think the Balearia is a welcome return for the folks on the island. We usually use that not just for transportation between here and Florida, but also for freight. Folks normally ship a lot of stuff like that. It's an inexpensive way, as opposed to just being able to use air traffic shipping.

"Not everything is available on the island, so people need that added method of getting goods."