The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The government was yesterday said to have received “at least five unsolicited” offers from the private sector to redevelop Cat Island’s New Bight airport, which has become the focus of political controversy.

Algernon Cargill, the director of aviation, told Tribune Business that prior to this sudden surge of interest the government had determined that New Bight airport did not warrant “any substantial capital investment” because the airline and passenger traffic would not generate the required returns.

He explained that New Bight has been “kept separate” from the other planned airport upgrades in Grand Bahama, Exuma, North Eleuthera, Long Island, Abaco and the Berry Islands because the offers for it came in after the process started, and the government does not “want to stop to incorporate that into the portfolio”.

Speaking after Dionisio D’Aguilar, minister of tourism and aviation, revealed in the House of Assembly on Tuesday that a separate bidding process for New Bight airport is due to be launched in September 2021, Mr Cargill said: “It will be the same as we’ve done for the other Family Island airports, but we’re marketing that airport separately.

“It’s seeking a partner to work with the government to develop the airport, and finance, build and operate it. We have at least five to six unsolicited requests to support the government, and the most transparent way to go about it is to go through a Request for Proposal (RFP) process and standardise the applications to work with us in a controlled format.”

Explaining why New Bight airport is being dealt with separately from the other Family Island airport outsourcing, Mr Cargill added: “The activities at New Bight don’t support any substantial capital investment at this time based on our experience. The airport itself is inactive. When you invest money you do so to get a substantial return on your investment.

“The offers came in after all the the other projects we are working on, which is why we separated it out. There are a lot of unsolicited requests to develop that airport in Cat Island, and we are committed to developing it, but the priorities are the other airports. Right now we’re focused on the other airports. New Bight is important to us, but we’re focusing our limited resources on the other airports. We don’t want to stop and have to incorporate that in our portfolio.”

Mr Cargill said commercial airline service to New Bight was limited, with Bahamasair flying in just once or twice a week, and not much activity by other commercial carriers although Western Air does fly to the island.

The New Bight outsourcing RFP became the subject of political controversy earlier this week after Philip Davis, the Opposition’s leader, argued that the Government had abandoned earlier plans left by the former Christie administration to develop that airport.

Desmond Bannister, deputy prime minister and minister of works, yesterday waded into the row during his Budget debate contribution when he read out a government “minute paper” produced during the former administration that purported to show the blame laid with the then-government.

Mr Bannister argued that it showed the former Christie administration failed to acquire the land required to expand New Bight airport despite knowing this was required from March 6, 2015, which was two years prior to the general election.

The document, according to the deputy prime minister, showed that the former government had initially agreed that the Cat Island Partners developer consortium, whose long-anticipated project has yet to materialise despite breaking ground under the last Ingraham administration, would pay $11.5m to develop the new terminal building, runway and airside facilities with the Government guaranteeing to repay them.

“By letter dated 23 March, 2016, the permanent secretary advised the developer, represented by Alexiou, Knowles & Company, that the agreement for construction by the developers and repayment by the Government did not pan out and that the Government would construct the facility using its own resources. The project was to be funded by NIB (availability of the funds is to be confirmed),” the paper said.

A Bahamian engineering and architecture team, together with quantity surveyors, was assembled for the project. Stantec, the international consultants used by both administrations, were hired to ensure the plans met international aviation standards.

However, the paper added: “By Memorandum dated 6 March, 2015, [Ministry of Works] permanent secretary Colin Higgs advised the Officer of Prime Minister of the need to acquire property in the area where the runway encroaches on property owned by Cream Property Ltd. This acquisition remains outstanding.

“In the ‘Final Cost’ report dated December 2015, Veritas Consultants provided a recommended cost of $18.926m inclusive of Customs Duties for terminal building and landside works. Approval to sit with the recommended contractor, Wooslee Construction, to agree the price was not received.

“It is intended that the airside works will be completed as a separate contract. Approved drawings for the terminal building and landside works are available for collection in Buildings Control. If it is intended to commence the works there is a need to review the design to ensure completeness and compliance with the latest international standards, and to agree the construction price.”

In response, Mr Bannister said: “I have come across no evidence whatsoever to suggest that members opposite took any steps whatsoever to acquire the land in the 21 months between August 2015 and elections in May 2017. So, Mr Speaker, I’m in the clear. It wasn’t me or this administration. Members opposite dropped the ball on the Cat Island airport themselves.”