Upgrades to family island airports won’t be delayed, Cargill says

While government funding was cut for a number of planned family island airport upgrades, Director of Aviation Algernon Cargill said yesterday that the projects will not be delayed.

On Thursday, Prime Minister Dr. Hubert Minnis announced that the government cut funding for planned upgrades to airports on Exuma, Long Island, North Eleuthera and Abaco and is instead seeking to implement a public-private partnership (PPP) program to complete the projects.

Cargill said, “The government strategy, as the prime minister announced, is certainly to continue the airports.

“There will be absolutely no delays in the projects, and we are imminently issuing a [request for proposal] RFP globally to determine who are the best partners to work with in providing the capital as well as the operational wherewithal to manage the airports.

“So, the prime minister’s announcement is consistent with our strategy that we developed in the Department of Aviation and we don’t foresee any delays. As a matter of fact, it gives us the impetus to move on to close these projects.”

Officials said the total cost for the airport projects on Abaco, Long Island, North Eleuthera and Exuma is roughly $150 million: between $65 to $68 million each for Exuma and North Eleuthera; between $15 and $18 million for Long Island and $10 million for Abaco.

In June 2018, the government secured two loans from the Inter-American Development Bank (IDB) in the amount of $70 million – $35 million of which was slated for infrastructural upgrades of four airports: Exuma International Airport, North Eleuthera Airport, Treasure Cay Airport and Leonard M. Thompson International Airport in Marsh Harbour, Abaco.

Cargill said that while the IDB loan is being used, it only represents a small portion of the funding needed to complete the projects.

“We did not lose the IDB advantage,” he said.

“That money is available. We are using that money, but it is only a very small portion of the cost of the airport. The government, and through our PPP, we will finance the remaining sums to build these airports.”

He added, “…The cost of the airport is $65 million in Exuma, and only approximately $18 million of that is being funded by the IDB.”

Cargill said there is significant interest, both locally and internationally, from the private sector in partnering with the government to fund the airports.

“There is a very high interest level,” he said.

“I’m getting calls just about weekly. I have a meeting today with someone who has called who wanted me to meet to discuss partnership with the airport.

“So, I have at least five proposals already, the unsolicited proposals from people who want to partner with the government of The Bahamas in developing the airports.

“So, we also, as I said from the very beginning, we have financing arranged also to go ahead and build the airports. So, we have a myriad of opportunities available to us to finance and develop these airports in the Family Islands. The IDB contributions are only a very small portion of developing the airports. It’s not as if the government did not take advantage of the IDB loan.

“The IDB loan is currently being used.”

Cargill added, “And, as I said, there is very high demand. In respect of COVID and Dorian in Abaco, there remains very strong demand and desire to partner with the government of The Bahamas and expand these airports.”

The government had allocated $515.5 million in the 2020/2021 budget for the massive expansion of public infrastructure projects to stimulate job creation and build a resilient economy.

In the budget, $11.8 million was allocated for the airport infrastructure program.

In December, Minister of State for Finance Kwasi Thompson told the Senate that the government is seeking to reduce capital and recurrent expenditure by as much as $200 million for the remainder of the fiscal year.

Though he did not specify which projects would be affected, Minister of Public Works Desmond Bannister said planned capital works projects have to be postponed until there are more available funds.

Cargill insisted that residents need not be concerned about delays.

“They need not be worried at all,” he said.

He added “Really, the prime minister’s announcement doesn’t delay the strategy we have been working on for the past year in the Department of Aviation.”

The post Upgrades to family island airports won’t be delayed, Cargill says appeared first on The Nassau Guardian.

source https://thenassauguardian.com/upgrades-to-family-island-airports-wont-be-delayed-cargill-says/