Videos: Minister, CCC & Aecon On Airport Plans
[Updated with videos] Finance Minister Bob Richards — along with senior executives from the Canadian Commercial Corporation [CCC] and Aecon — held a press briefing today [May 20] in relation to the contract to build a new airport terminal building.
CCC CEO Martin Zablocki said, “Aecon brought this project to CCC’s attention after conducting its own due diligence on the opportunity. Bringing the project to CCC is just a first step.
Update: 6-minute video of Finance Minister Bob Richards
Mr Zablocki added, “Once Aecon formally brought this opportunity to our attention, we assessed the viability of the opportunity itself, determined if the potential deal is a good fit for a government-to-government contracting model and we conducted a due diligence review of the of Aecon with respect to the company’s business ethics and managerial, technical, and financial capability to deliver on the contract.”
Update: 5-minute video of CCC CEO Martin Zablocki
“Our role on this project will be to serve as the prime contractor and in doing that we offer a Government of Canada guarantee of contract performance. Contracts signed by CCC have the legal effect of being signed in the name of the Government of Canada. That means that Bermuda doesn’t have to worry about time or budget overruns – that’s on us.”
Update: 13-minute video of Q&A at today’s press briefing
Aecon President Steve Nackan — whose emails were part of those released recently — said, “One of the things we are most proud of at Aecon, is our commitment to taking a whole country approach – meaning maximizing employment opportunities for Bermudians and Bermudian companies – and bringing best-in-class construction, safety and environmental standards to the project, just like we did for the Quito International Airport which today operates with 99 per cent local employment.”
Update: 3-minute video of Aecon Executive Chairman John Beck
Today’s press briefing was held as a delegation from the Opposition PLP is in the UK meeting with the Foreign & Commonwealth Office [FCO], saying it is their view “that a competitive tender process is the only way to ensure that Bermuda gets the best deal for the privatisation of the airport, which in it’s current form, will give the Canadian company Aecon the rights to over $1 billion of revenue.”
Update: 5-minute video of Aecon President Steve Nackan
The delegation includes Opposition Leader Marc Bean, Shadow-Attorney General Michael Scott, Shadow Home Affairs Minister Walton Brown, and Shadow Tourism Minister Zane DeSilva, and their meeting with the FCO was set for today.
Update: During the Q&A they said they hope to obtain financing and break ground in end of June 2016.
CCC CEO Martin Zablocki’s full statement follows below:
Thank you Minister.
On behalf of the government of Canada and the Canadian Commercial Corporation, I am delighted that we could build in time to speak with you all today as part of our team’s visit to Bermuda as we continue discussions on the airport project – I know you have questions, and we are happy to be here in person to address them.
Let me start by telling you a bit about CCC. The Canadian Commercial Corporation is a Crown corporation, a state-owned enterprise, of the Government of Canada established in 1946.
We’ve been around for a long time and since the beginning we have been assisting in the development of trade between Canada and other nations, primarily by helping Canadian exporters access government procurement markets through government-to-government contracts.
Our involvement carries with it the reputation and integrity of the Government of Canada and provides foreign governments access to proven suppliers, and risk mitigation benefits from a government to government arrangement.
CCC works very closely with Canadian companies when pursuing projects abroad. In many cases, Canadian companies engage CCC when there are opportunities that can benefit from government-to-government contracting.
That is the case here. Aecon brought this project to CCC’s attention after conducting its own due diligence on the opportunity.
Bringing the project to CCC is just a first step. Once Aecon formally brought this opportunity to our attention, we assessed the viability of the opportunity itself, determined if the potential deal is a good fit for a government-to-government contracting model and we conducted a due diligence review of the of Aecon with respect to the company’s business ethics and managerial, technical, and financial capability to deliver on the contract.
While what we are proposing for Bermuda is a “government to government” undertaking, it is important to emphasize that CCC’s role is commercial.
We are offering to work together with the Government of Bermuda in a commercially, cooperative and collaborative manner to reduce the costs, risks and timelines associated with delivering a project of vital economic and social importance to the nation.
That means there are certain details that are commercially confidential at various phases of the process, so CCC cannot be fully transparent about those details deemed commercially confidential.
Further, where projects are identified by Canadian companies and brought to CCC, CCC does not need undergo a competitive supplier selection process. CCC has a clear and detailed policy [our Exporter Support Operations Policy] that outlines our policies and procedures in supporting Canadian exporters. When an exporter brings an opportunity to CCC like Aecon did in this case, commercial confidentiality would apply to all information on the file and must not be discussed with any other interested party.
We have a long standing relationship with Aecon. We have worked together successfully over a seven year period on the award winning Quito airport project in Ecuador – a project we are very proud of, and key reason we are confident that what we did help Ecuador, we can do here in Bermuda which is to develop a best-in-class airport for Bermuda.
Aecon is an ideal partner for us on this project because they are world leader in the development of large-scale infrastructure projects in Canada and internationally.
They have also been recognized as a safety leader, Employer of Choice, is valued as a preferred contractor, and a public company with a stringent code of ethics.
Our role on this project will be to serve as the prime contractor and in doing that we offer a Government of Canada guarantee of contract performance. Contracts signed by CCC have the legal effect of being signed in the name of the Government of Canada.
That means that Bermuda doesn’t have to worry about time or budget overruns – that’s on us.
We strongly believe that our established due diligence processes, our access to proven suppliers and competitive financing options, and our guarantee of contract performance delivers high value and low risk to Bermuda.
It’s been an honour and a privilege to be able to share our ideas and experience with your government and local stakeholders and we look forward to continuing through this process and bringing to the table what Bermuda deserves and should expect – a world-class team of experienced experts committed to delivering on our promise to develop a 21st century airport with a state of the art passenger terminal that all Bermudians can be proud of, and creating hundreds of jobs with long term impact on employment, tourism and commerce.
Thank you.
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Aecon Executive Chairman John Beck’s full statement follows below:
Thanks Martin.
For those of you who aren’t familiar with my background, I am an engineer by trade, and have been working in the construction industry for 50 years. And, a little known fact is that I have spent a great deal of time here in Bermuda and am very fond of this beautiful Island.
For those of you who aren’t familiar with Aecon – we are Canada’s premier infrastructure development and construction company. For over 130 years, Aecon has been building Canada’s landmarks, transportation networks, and energy infrastructure.
Aecon is a public company with a stringent and unwavering code of ethics, is recognized as a leader in safety, is one of the 50 Best Employers in Canada, and is a top-tier contractor with a proven track record in execution.
I stand here today proud of Aecon’s impressive record developing P3 projects. Aecon has been involved in nearly 30 P3 projects in various capacities – developer, builder, operator or all of the above – with a total capital value of over 15 billion dollars – across the toll road, transit, healthcare, energy and water sectors, with particular expertise developing airports.
As a company, Aecon takes great care to deliver infrastructure that supports the economy and society in ways that are sensitive to the needs of the communities in which we work and we always want to have a positive impact in the communities where our business is conducted.
Aecon is very interested in working here in Bermuda to deliver a first-class airport.
I’ll let Aecon’s President of Concessions – an expert with 17 years of experiencing developing large-scale projects, Steve Nackan, speak further on Aecon’s approach:
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Finance Minister Bob Richards’s full statement follows below:
It has been a well-accepted fact, both by this government and the former administration, that Bermuda needs a new air terminal. As our vital link to the outside world, it no longer suits the 21st century needs of Bermuda from a number of perspectives:
- i.a storm resistant standpoint,
- ii.an international business standpoint,
- iii.a tourism standpoint.
This Government has, after careful consideration of the current social and economic circumstances that Bermuda finds itself today, has decided to redevelop our airport using the CCC/Aecon solution.
Those circumstances are
- iv.the critical need to create new jobs and business opportunity,
- v.the already unacceptably high Government debt of $2bn,
- vi.the annual government deficits crippling gvt’s options for traditional financing,
- vii.the appalling track record of public sector project overruns that have cost the treasury hundreds of millions of dollars, creating a major risk to gvt’s already stretched financial position.
Any redevelopment project has to satisfy these criteria or it would be a non-starter.
The CCC/AECON Solution
- The overall procurement time is greatly reduced – by about half – fulfilling the urgency requirement for the creation of jobs. Subcontracting to local contractors will engage local labour.
- The project is financed by the developer without increasing government debt or issuing guarantees.
- CCC guarantees the construction project will be delivered on-budget and on-time. Also heavy procurement costs, as suffered by the hospital, are mitigated.
- The project will employ hundreds of Bermudians both in the construction phase and going forward operationally.
- The bottom line is that the CCC/Aecon solution enables Bermuda to acquire a strategic asset that Bermuda cannot afford to develop on its own, but cannot afford to do without.
This solution has multiple layers of ways to ensure that Bermudian taxpayers get value for money.
- CIBC providing world class financial analysis and advice for Bermuda
- The Deloitte Report on governance and value for money jointly sponsored by HM Government and the Bermuda Government.
- The Value For Money assessment by an independent international construction firm.
- Today we have met with senior executives of CCC and Aecon to move this project forward.
- The project is still in the developmental stage. Final costing and arrangements and agreements are still are still a long way from being finalized.
- They have kindly agreed to speak with the local press and answer questions thereafter.
We have with us today Mr. Martin Zablocki, President & CEO of CCC; Mr. John Beck, Executive Chairman of Aecon Group Inc.; and, Steve Nackan, President of Aecon Concessions.
I will ask each of them to give you an overview of their respective organizations after which they have agreed to answer your questions
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Aecon President Steve Nackan’s full statement follows below:
Thanks John. Good afternoon.
A little over two years ago, CCC and Aecon successfully opened the new Quito International Airport – replacing an antiquated, unsafe and undersized airport with the most modern airport in Latin America. That Project was originally beset with seemingly insurmountable challenges as to HOW it could be done – due to a combination of Government’s financial limitations and considerable geopolitical issues. I’m proud to say – standing here with CCC today – that we figured it out.
Not only did the country get a new airport, the Quito Airport Project is the recipient of many prestigious international awards, including awards for financing, environmental sustainability and corporate social responsibility, and in 2014 the Global Travel Award for Best Airport in South America, considered the Oscar of the Airport industry.
Following the opening of the Quito Airport – we [Aecon and CCC] were excited about what we could accomplish together and so we began to analyse whether the model successfully created to deliver that project might be a way to help other Governments deliver airport projects that had inherent procurement challenges.
The need for a significant upgrade to Bermuda’s airport and primary gateway has been widely known in the international community for many years. It was no secret.
And from our perspective there were a few factors that seemed to make the CCC model an excellent fit for Bermuda – these included -
- 1. Strong and deep Canada-Bermuda roots
- 2. Bermuda wanting to avoid increasing its already significant public debt
- 3. What looked like an irreconcilable gap between the estimated capital cost of the project and economic realities
- 4. And lastly, declining passenger numbers since the 2008 recession, bringing annual traffic well below 1m passengers per year.
We believed a solution could be found through an innovative and collaborative process to reshape and re-scope the project and reimagine the project economics. We believed so much so, that we began to research the project – its challenges and opportunities – and we engaged world leading experts. And we did this all at our own cost and risk – until such time as Bermuda was happy with the proposed solution.
Over the past several months, our team – which includes world class technical and financial advisors – has focused our efforts on helping Bermuda to define an airport development concept that is affordable, financeable, and capable of delivering on the Government’s vision for the renaissance of the Bermuda economy – all the while minimising the fiscal impact of the project on the Government.
It is this kind of tailor made and collaborative development process that enabled Aecon and CCC to find a solution in Quito – and that’s what we brought to the table in Bermuda.
The process also contains many safeguards for Bermuda, including [A] by way of Global expertise from several firms engaged as independent Government advisors and [B] the Government’s ability to exit the process if we cannot demonstrate our ability to deliver Value for Money.
One of the things we are most proud of at Aecon, is our commitment to taking a whole country approach – meaning maximizing employment opportunities for Bermudians and Bermudian companies – and bringing best-in-class construction, safety and environmental standards to the project, just like we did for the Quito International Airport which today operates with 99 per cent local employment. Throughout the various stages of that project we helped to create thousands of jobs for locals and that is the approach we want to bring to Bermuda.
While the project is still in the early development stage, we feel privileged to be part of an endeavour to deliver a first class, state of the art airport to Bermudians at such a critical moment for the country.
Thank you.
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Canadian Commercial Corporation’s [CCC] full statement follows below:
As part of a delegation visit to Bermuda, the CCC team comprised of representatives of CCC [Canadian Commercial Corporation] and Aecon, welcomed the opportunity to speak directly to media at a press conference held today at the Government of Bermuda’s Cabinet Office at 3:15 p.m.
For those who are unfamiliar with the organization, CCC is a Crown corporation, a state-owned enterprise, of the Government of Canada established in 1946. Since its inception, CCC has been assisting in the development of trade between Canada and other nations, primarily by helping Canadian exporters access government procurement markets through government-to-government contracts. CCC’s involvement carries with it the reputation and integrity of the Government of Canada and provides foreign governments access to proven Canadian suppliers, and risk mitigation benefits from a government-to-government arrangement.
CCC works very closely with Canadian companies when pursuing projects abroad. In many cases, Canadian companies engage CCC when there are opportunities that can benefit from government-to-government contracting. That is the case for the proposed solution to redevelop the L.F. Wade International Airport. Aecon brought this project to CCC’s attention after conducting its own due diligence on the opportunity.
Bringing the project to CCC is just a first step. Once Aecon formally brought this opportunity to CCC’s attention, CCC reviewed the potential project to determine if it was a good fit for its government-to-government contracting model and assessed Aecon’s ability to deliver on the contract by carrying out its established due diligence process and thoroughly reviewing the company’s business ethics and managerial, technical, and financial capabilities.
CCC has a long standing relationship with Aecon. The two organizations worked together successfully over a seven year period on the award winning Quito International Airport Project in Ecuador. Not only did the country get a new airport, the Quito Airport is the recipient of many prestigious international awards, including awards for financing, environmental sustainability and corporate social responsibility, and the Global Travel Award in 2014 for Best Airport in South America, considered the Oscar of the Airport industry.
The need for a significant upgrade to Bermuda’s airport and primary gateway has been widely known in the international community for many years. Over the past several months, our team – which includes world class technical and financial advisors – has focused its efforts on helping Bermuda to define an airport development concept that is affordable, financeable, and capable of delivering on the Government’s vision for the renaissance of the Bermuda economy – all the while minimizing the fiscal impact of the project on the Government.
CCC’s role on this project would be to serve as the prime contractor and, in doing that, CCC offers a Government of Canada guarantee of contract performance. Contracts signed by CCC have the legal effect of being signed in the name of the Government of Canada. That means that Bermuda doesn’t have to worry about time or budget overruns.
While what CCC is proposing for Bermuda is a “government-to-government” undertaking, it is important to emphasize that CCC’s role is commercial. CCC is offering to work together with the Government of Bermuda in a commercially, cooperative and collaborative manner to reduce the costs, risks and timelines associated with delivering a project of vital economic and social importance to the nation.
Acting in a commercial capacity means that there are commercially confidential details at various phases of the process that CCC is unable to share. Further, where projects are identified by Canadian companies and brought to CCC, CCC does not need to undergo a competitive supplier selection process. CCC has a clear and detailed policy (Exporter Support Policy) that outlines procedures for supporting Canadian exporters. When an exporter brings an opportunity to CCC like Aecon did in this case, commercial confidentiality would apply to all information on the file and must not be discussed with any other interested party.
CCC strongly believes that its established due diligence processes, access to proven suppliers and competitive financing options, and guarantee of contract performance delivers high value and low risk to Bermuda. Further, in working with Aecon, we know they take a whole country approach – maximizing employment opportunities for Bermudians and Bermudian companies – and bringing best-in-class construction, safety and environmental standards to the project, just like we did for the Quito International Airport which today operates with 99 per cent local employment.
It has been an honour and a privilege to be able to share our team’s ideas and experience with your government and local stakeholders and we look forward to continuing through this process and bringing to the table what Bermuda deserves and should expect – a world-class team of experienced experts committed to delivering on our promise to develop a 21st century airport with a state of the art passenger terminal that all Bermudians can be proud of, and creating hundreds of jobs with long term impact on employment, tourism and commerce.
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WE DON’T WANT IT!!!!!
No, the PLP doesnt want it. I guess you fall in to that group as well.
I am not PLP m8 but there are OBA people that do not want it either
Question to all those people who say they don’t want or think we don’t need a new airport. Have you been anywhere in the airport except the main departures and arrivals areas? Cause if you had you would know why we do need a new one.
There are PLP supporters who want a new airport also.
@ Jus’ Askin’
Speak for yourself!!
Please tell us why You want it
Please tell us why you don’t
I don’t want this deal because we can
1. Get a better deal.
2. Does not need to be done right now.
3. We can finance ourselves.
4. Denies us an avenue of income for 35 years.
5. Those making this deal will be dead and gone with future generations left holding the bag.
6. A new airport is not going to turn around tourism.
7. This government feels they are not obliged to follow standards
8. We can find $70 million for an event but we can not raise/find $200 million for an airport.
9. Puts control of our airport in another person’s hands
10. Proves Our Government is DUMB and CLUELESS when it comes to being TRANSPARENT
Opinions are like backsides – everyone has one
That’s your response?
That let’s me know, I am right on target
I think the one claim that ‘we can finance ourselves’ nullifies the rest of your opinions. That claim right there shows you have no clue.
And it is amazing that in less than 2 minutes of me looking at your comment that it went from a dozen likes to 175. Autobots are in full use!
We raised $750 million for…..
We raised $70 million for…..
We can raise money if we want to
So I guess You don’t have a clue
Your referring to buying more debt. This project will not incur more debt. That’s the problem with plp obstructionists, they can’t understand or appreciate or revue to acknowledge the difference. The $70 million you mention for the AC35 will reap benefits for the whole of Bermuda over the next few years and beyond. Sorry you just blew your own cover, claiming your neutral stance on issues. Busted.
We raised $750mn to cover roughly 3 years of deficits because your beloved PLP thought it was smart to increase our national deficit by 2,620% between 2004 and 2013 (check the audited financials to confirm).
Thus that $750mn was raised to pay basic operating costs of the Govt incurred by the PLP due to their drunken sailor spending. That monies is not inclusive of capital project spending.
The fact that you think we can just simply add another $250mn of debt on top of the $300mn annual deficit shows how you are not the mist financially inclined individual.
$70mn of which $25mn is a simple sponsorship guarantee while the rest is comprised of capital projects which will be used post-AC to house Marine and Ports and the like. But without the AC it wouldn’t have happened.
All the projects ‘self-financed’ over the last 10 years resulted in hundreds of millions of so called ‘overruns’ which is paid for by the taxpayer.
This Richards deal as stated hundreds of times over eliminates any threats of overruns as the CCC will be responsible for absorbing them.
So again, much like your beloved PLP, you have no clue on finances or how PLP mismanagement has led to the need for austerity and creative financing for capital projects.
Now write another dumb comment and add your even dumber smiley face after as it still doesn’t negate the fact that you don’t have a clue:)
…and that’s your opinion.
Let’s look at this
1. Get a better deal.
- how do you know, nobody has presented one, only one company made a presentation in to response to the Minister very public announcement about his plan for seeking a PPP that would not burden the public books
2. Does not need to be done right now.
- if you have seen the current one, in its glorious truth, you would know that we do need one, the current one is falling apart, it’s infrastucture sytems are old, some 50/60yrs
3. We can finance ourselves.
- seriously… no we can’t
4. Denies us an avenue of income for 35 years.
- if we financed this ourselves, we wouldn’t have access to those revenues anyway, as they (and more from the government coffers) would be going to the loan and its interest and the garantees cost overruns, that would be required for us to do so.
5. Those making this deal will be dead and gone with future generations left holding the bag.
- same would be said about if they got the loan to finance it, we would still be holding the bag after they are gone.
6. A new airport is not going to turn around tourism.
- it isn’t necessarily about that, but it would present better than peeling paint, exposed wiring, rusting pipes and having to get off a plane into the rain.
7. This government feels they are not obliged to follow standards
- actually, the new airport will have to meet with international standards, Andes it has been shown, they have been doing their due diligence
8. We can find $70 million for an event but we can not raise/find $200 million for an airport.
- we aren’t putting up $70m, much of that is expected to be recouped or covered with sponsorship and it is expected that while government will not see a ROI for what they put in directly, it is the economy that will see a ROI of more than 3 fold to your $70m
9. Puts control of our airport in another person’s hands
- only really as far as the airport operations, as we are in the process of taking control of our airspace and Aecon/CCC will still be responsible to meet the airport regulation set by government, in the same way the airport would if it was governement run, regulations that will still be in governemnt’s control and responsibility. As a side note, until the mid/late nineties the US controlled our airport, and we currently do not control our own airspace
10. Proves Our Government is DUMB and CLUELESS when it comes to being TRANSPARENT
- to a degree, course that fact that this deal is being done to the review of an independent review for value that is being vetted by the FCO, this is being done with greater transparency than an other government contract before it. An RFP does not garantee value or transparency, look at the last 30 years for that. And we cannot expect transparency on contract negotiations of any kind to be transparent, as any negotiation of these nature are always subject to NDA’s
You’re making far too much sense. This is scandalous, whether you think so or not!
Orchestrated faux rage and a sign of how desperate the Combined Opposition are, faced with a bold national infrastructure project, that creates many jobs, at a time when the coffers are dry, with no longer any ability to borrow to fund such a project.
Fight it all the way PC. It will be built as planned, because it is a plan that “ticks a lot of boxes” and is a good idea for the times we currently live in.
It is them that think like the few e.g. Jus’ Askin that often attempt obstructing any progress. If they can come up with a better plan then please place it upon the table or do everyone a favour and jus’ shut-up!
@ Jus’ Askin’
I have done so on numerous other posts, go look for them. I’m not about to waste my time just for you as it wont matter now will it?.
Build a bridge & get over it… or don’t. Either way I don’t care!
Redman be honest. You don’t know why we need a new airport.
@ Johnny,
Well I happen work at the airport frequently, have family & friends who work there as well so I guess I do know why and I bet you don’t!! Nuff said.
(Rings school bell to let class out)
The PLP wants it, but on their terms. They forgot they don’t make the big decisions anymore.
Their terms of course being that they decide who gets the contract, a choice that always was against the government’s technical officers. While this might be against the advise of the procurement office, and I have yet to hear officially from the procurement office on this as this seems to be only coming from the PLP, it meets the criteria that Minister Richards announced in the 2014 budget. It seems that only Aecon and their partners were the only ones truly listening back then.
Lois Frederick, word!
Look what a little pressure produces, keep on top off these guys P.L.P they’re gonna try to spin their way out of this B!@# S!@#.
From the Queen of spin .
I’m surprised that people are ok with getting the same type of deal as a country (Ecuador) that just converted to using US dollars because their own currency was so weak. Cayman found a way to avoid this and we are supposedly more developed and less corrupt.
It’s shocking that we are all going to be welfare recipients and people are happy about it. Just a few years ago people were very critical about the number of people on the island that were getting “hand outs” now all 60,000 of us will be on welfare.
If there are 60,000 people here the 200 million dollar payout from AECON works out to be just over $3300 each which then turns out to be just over $95 each over the next 35 years. That’s without overruns.
We raise all types of money on this island for all types of things…..a lot of our money supports places and problems all over the world and now we are the ones taking charity from others.
Will this further decrease our financial ratings? Will we still be considered first world while accepting this type of third world solution to a “problem” that doesn’t really seem as big as it’s being made out to be?
Thank you, thank you and thank you, for stepping forward and releasing this pertinent information for everyone to hear / read…Now, lets get “cracking”!
It is so nice having a competent Government like the One Bermuda Alliance handling all these affairs
It’s laughable how you point out the dumb S!@# that P.L.P did (which I agree they did do some dumb S!@#) but you and your blind faithful U.B.P./oba’ers don’t see one thing wrong that these clowns have done since they’ve been in power.
What a F!@#ing JOKE !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
How’s them tears taste with your cornflakes?
And you see nothing right…so there it is.
Competent how? Sounds like they scrambled after they realized the PLP was going over to the UK. They should have included these people on the original press conference. It reeks of insincerity.
Deloitte were engaged two months ago to undertake a financial review of the project and CIBC last year to represent the financial interests of the taxpayer.
Your remark is completely uninformed and wrong. Much like the PLP’s reaction and campaign of misinformation.
My point is he should have released the results before instead of rushing to do it now. The timing looks suspicious. Keep thinking I’m uninformed all you like. The whole business is shady dealings and not above board.
The reply is always too late and to lame from the OBA. If they’d come out on Day 1, told the public the whole story, and laughed at the PLP and talk show hosts for making things up then the OBA would be miles ahead of where they are today.
Yup, just like Jet Gate,
I trust them as much as the American Indian trusted the Pale faces.
Your a little off in your assertations, it is impossible to be completely upfront and transparent during negotiations, NDA’s prevent this. Course the PLP news this and exploits it to create this image of back dealings and nefarious affairs, showing how they are willing to decaieve and misrepresent the public for political gain, showing how they are unfit as a better choice for government… and if they didn’t now this about high level contract negotiations, then it goes to show how unfit they are as a better choice for government.
When are you going to put on the oba’s cheerleader uniform. Then again Bermuda always gets a good laugh from you working as their paid mascot.
I see, them in “India” were up while we all slept… They were clicking away at their keyboards opposing anything written by us,(supporters of the new and improved L.F. Wade international Airport.)Sad yes, but true
Well, the beat still goes on…
Get ‘em, Bob!
Why should we believe? This government has told too many lies. This will be a project that will give Canadians employment and Bermudians will be on the side lines begging for jobs.
@ Alvin Williams,
Just more BS from you. Bermudians are in need of jobs now or hadn’t you noticed. But I bet you’ve never created any employment for anyone.
Govt just needs to get on with it already!.
Your just keep falling for the plp propaganda they keep putting out. Do you actually believe what they say still?
I hope you’re more lucid tonight than you were the other day Alvin.
Currently, the count over just the last couple of years stands with the OBA for more honesty than the PLP. Primarily because the PLP has this pesky habit of turning truths into lies to support their own narratives.
List the alleged lies Alvin. In detail.
So now it is official that the 4 stooges/plp have once again wasted their time running to the UK half cocked with misinformation!!! Thank you Min Richards for holding this press conference and proving that the OBA is for Bermudians first!!!! This would be the perfect time for the plp to just shut up, stay out of the way and let the pros cleanup their mess!!!!!
@ Kangoocar,
Exactly, Letting the PLP go off half cocked to the UK all the while having done due diligence months ago tells us that Mr. Richards & the Govt have given the PLP enough rope to hang themselves.
And that settles that. Once again the PLP and their operatives have got it all WRONG! This won’t stop them though, stay tuned for Friday. The PLP is prepared to destroy Bermuda in order to get back into power. What a shame!
Bulls******.
OBA must have hired Ewart for propaganda and his lawyers.
They are just confusing everyone except me.
Shalom.
And you know this already AW . You should be over in the UK with the rest of your PLP buddies with that inside information ! Take the trip over to them with this information . I’am sure they could use all the help they can get at this time . Just before the UK Government stop laughing and send you all packing !!!
This does bring clarity to the situation and was perfectly timed to kick the plp to the curb.
As far as due process is concerned this is a travesty. We need better shipping births in Hamilton and St. G not a new airport with fewer flights as time progresses. All this for a few airplanes a day. CCC says they don’t have to do an RFP. They just looked at one company who they have dealt with for years and ran a cursory ‘due diligence review’ (again they already know this company) I don’t care which way you slice it, it’s the tail wagging the dog! With all that has happened including Aecon wanting to disguise itself as CCC and the partnership betwen the two for this lucrative gig was already a done deal created with their prior agreement shows an incredible conflict of interest. CCC claimed that they conducted a due diligence review etc on Aecon and indicated how they had this long relationship with Aecon indicating experience. The same company that couldn’t figure out whether to use CCC’s company logo or not for a Bda visit.
Yet this Govt barrels ahead anyway. CCC says that they will eat the budget overruns. The good news then is that departure taxes stay locked in at the current price ($35 I believe) for the next 35 years years, yes? I mean no reason whatsoever to raise departure taxes right? Or what is the projected increase in year 35? I would love to see the future value calculations for those precious revenue streams. We will never know if we will be getting value for money with this no bid deal that was rushed through. CCC could have still looked at other companies. Procurement Office, RFP, Financial Instructions, process etc be damned with this Govt because they could have asked for the same in spite of rather than be dictated to by a foreign company on their process. Simply wow…! How much more land deals will be given away under these sole sourcing special arrangements that this Govr likes to do? I hope people remember this in 2017. But hey the timing is perfect with AC underway and so will airport construction at that time. People have a hard time remembering beyond the glitz of the day. I can see the spin in the campaign ads now. All strategic that’s why these things were rushed through. Smh.
@ just a matter, ever give any thought to the fact that because this company is building our airport for NO upfront money, we just might after we finish cleaning up the plp mess be able to afford to build better shipping births in Hamilton And ST GEO??? If you open your eyes and ears to what has been announced by the OBA in a non partisan way, you might actually realize that we have a few new hotels starting or about to start being built!!! Which will mean we should have a better and bigger airport to accommodate the new hotel room being built, after all do you think these hotels are being built because the owners think our visitor counts are not going to get better???
Most ppl have an issue with the process carried out…stop being such an over the top OBAer
agreed on all points
You post sums it up… But that leaves the question, why is a certain group so ok with this now, but would call the PLP everything but a child of God if this was under their watch? Strange huh? And then call anyone who questions their motives something else… I hope people are paying attention.
Yeah – better they do nothing. That’ll be the best thing to do for Bermuda. Just sit tight – have a golf tournament and a concert and hire more Govt employees.
I love how people see progress as a publicity stunt. Hey VOTERS! LOOK AWAY FROM RESULTS!!!! They just want your vote!
also did anyone ask about ccc’s tramsparency in contracting?
1. Aecon brought this project to CCC’s attention.
“CCC assessed the viability of the opportunity itself, determined if the potential deal is a good fit for a government-to-government contracting model and we conducted a due diligence review of the of Aecon with respect to the company’s business ethics and managerial, technical, and financial capability to deliver on the contract.”
2. So… Aecon heard about the project and brought it to CCC’s attention (what’s in it for Aecon?)
Who told them or where did they see it?
“CCC agressively pursued it”
3. So CCC approached the government bypassing expected process? Did the OBA say great, we will put it to an RFP process and include you in the bid? Or did they just jump at the first company that approached with smooth words and glib presentation?
“Where projects are identified by Canadian companies and brought to CCC, CCC does not need undergo a competitive supplier selection process.”
4. But that’s their policy, don’t we have a different (RFP) policy? It is not about CCC, it is about Bermuda and what’s best for her people.
“It has been an honour and a privilege to be able to share our team’s ideas and experience with your government and local stakeholders…” etc., etc.
5. Sounds like they had a great conversation with the OBA. And I guess the OBA is choosing what is best for Bermuda sans the people of Bermuda, as per usual.
Is there a better deal out there? Maybe, maybe not; they’re probably a great company. But it is definitely not best business practice to choose a company based on their presentation, rhetoric. What happened to due diligence these days Bermuda? This selection should have been done via an RFP process.
Savvy business folk like the OBA should know that.
wishi had been there to plant some questions …..
yeah! they are so sure bermudians will be employed! until the time comes and they say nobody wants to work for the nickels and dimes they offer, so bringing in staff with the purpose of finishing before the ac as an excuse. what will the pay be for from the bottom up
if this is being built under ppp surely the contract will stipulate agreements over cost over runs. so why the rush
to go with a sole bid? to me the oba are being held to ransom by their own promise to create 2000 jobs.
we should not be looking to south america for comparisons we should be looking to the caymans
As noted in the press conference, we’re at least a year away from an agreement regarding the financial aspects of this opportunity. As the Government has engaged both CIBC and Deloitte to assist with vetting the viability of the project on our behalf, not sure why you consider this to be a rushed effort. It’s anything but. Unlike the no-bid prediclictions of the PLP who ensured taxpayer money ended up in the hands of their party elite, time and time again, at great expense to the electorate.
I read yesterday that work could start as soon as June next year so I guess that we are lot closer to agreeing the financial aspects than we realize?
This Airport project is NOT needed right now and to forfeit 100′s of millions over the next 35 years is definitely not needed right now…
One thing I have never seen, is anyone not wanting to return to Bermuda because our Airport is not up to par.
Mixitup, you are obviously mixed up again??? When you say we are giving up hundreds of $$$millions, you are quoting burt/plp numbers!!! The truth of the matter is this, the NET revenue from our airport is a little over $3 million a year!!! Typical plp math, you always only look at revenue and not COSTS??? No wonder we are in the predicament we are after the last 7 yrs of the plp reign of terror???
I think that number comes from what you JUST STATED. If the airport makes a 3 million dollar profit every year………you multiply that by 35 (the length of the proposed contract) and total is 105.
Thanks Stan, but that would be 100 not 100′s?? big difference from the $billions the plp are saying as well isn’t it???
@ Mixitup,
Right, so we should continue pumping tens of Millions of good money into a bad airport that is in an appalling state; Thanks, got It. On top of that the airport in it’s current location is vulnerable to damage from Hurricanes especially when they approach from the South/East. Clearly we should just wait until one wrecks it so badly that it is out of use for several months.
On top of that many construction workers will be able to earn a living on a project slated for at least the next three years, something they haven’t been doing much these last few years.
Waste of EFFIN time . It ain’t going to happen .
A very strong presentation today that gives clarity to the airport project. Great to hear that hundreds of Bermudians will be starting work on the construction in the summer of next year. Wonderful news for those who have been out of work for years.
CCC AECON w/MoF,they ran here to CTA, and protect their interest, whose got the interest of the Bermudian people.
You have always made a lot of noise without knowing what you are talking about . You believe what you hear , no critical thinking .
@ rohnda,
‘… whose got the interest of the Bermudian people”.
Certainly not the PLP despite their protestations over this project.
I hope that helps.
Given the dramatic decline in air arrivals – we don’t need a new airport. We could use a cruise ship terminal in St. George. Cruising is better value for money. Hotels are too expensive and only used for 6 months of the year. Place a dock in the area East of Fort St. Catherine.
CCC andAECON appear desperate, they are begging us to not believe our lying eyes, so why are we negotiating from our knees. An honorable company don’t beg, their reputation speaks for them. They sound like used car salesman. Do fall for it my fellow Bermudian.
@ rhonda,
Wow that is pure gibberish & you have a degree?!
Actually you’re the one that’s appearing desperate right now. Embarrassed about that PLP trip to the UK?
I need a rum.
@ Terry,
So does rohnda, make it a double. lol
oops rhonda.
Someone must have said to CCC and AECON the people of Bermuda are stupid, just to tell them this will create hundreds of jobs for them and they will fall for anything.
Rhonda please don’t lump the majority of intelligent and informed Bermudians into your slef-described stupidity bucket simply because you don’t understand or want to appreciate how infrastructure projects are completed and financed. Just because the PLP chose to ignore the benefits of this economic paradigm doesn’t negate its viability.
Your constant refrain of obtuseness and inability to comprehend the financial models only serve to confirm why the PLP were consistently and pathologically incapable of making the public purse.
There are more than 2,000,000,000 reasons to support this.
@ rhonda,
Well if they did say that the people of Bermuda are stupid; for proof they would only have to show them the previous Govts track record & the subsequent election results, well until 17th Dec 2012 that is. Thankfully we smartened up for that one.
They could also show them some of your comments on these sites just to add clarity.
@ Kangoocar et al. Sigh. Let me make this abundantly clear. I am for jobs. I am for Bermuda’s growth. I am for hotels being built. I could even be in support of a new airport. I certainly understand all of the associated growth aspects and hopefully positive knock on effects. Most Bermudians across the political divide want good things to happen for the benefit of BERMUDIANS. But you all are willfully or ignorantly missing the point. How do we know this is the best deal for our money?? Is CCC the ONLY player in town? Have they built every single airport around the globe so there is no one else? It’s about proper PROCESS! There is an obvious conflict of interest here. And it’s wilful ignorance by many OBAers on this board who don’t see that. You know I’m right. Just like one post said, if you were building a house, would you accept just the first and ONLY quote because one company jumped on the bandwagon early?? Stop deflecting it with jobs (3 years worth), etc etc. I want my people (Bermudians) to work too!! It’s about process dear people and getting proper value for our $250 million. That’s it!
And do you really think Canadian workers will not be licking their lips at the prospect of this airport lottery deal? CCC and Aecon have friends and families too. There will be MANY who will fly here to work having so called ”key skills’ that no Bdian could ever fill during this project. Just like the hospital. Watch. So where will all the Bdian jobs be now that everyone is foaming at the mouth over to support this travesty of a deal? The Bdian vs Canadian job ratio should be interesting to see. I just hope we come out for the better now that it’s a done deal.
Glad your finally coming around too. 75% Bermudian is what were told.
Just to address a few of your comments; there may be a few others like CCC that can do this, but they are not many, Chinese, Arab… but when you look at these other dealings, they actually require the us of the majority of their nationals for the project. The Chinese built a hotel in Bahamas, I believe, and the shipped in a container community and workers to build it. We will see a number of Canadians come in to work, that is true, but they will mostly at high skill levels, how many Bermudians and Bermudian companies do you know that have built and installed the complex systems and infrastructure for a modern airport? Remember, in order to work here, you need to be a Bermudian company, so much like the hospital, you will see a couple of companies set here, and their employees will be mostly for the project management. Any smart. Us invests here that is looking for a piece of this, should be looking to partner with and be the local rep for any of the Canadian infrastructure installers that will probably be used. Frankly, no matter who builds this, you can expect the same amount of Bermudians will be employed, because whatever company that work there will still need the same skilled people that Bermuda cannot provide. Finally, I have said this before, an RFP is no garantee for value, we have decades of proof of this. The value will come with the Design Construction contract, and having an independent verifier certify its value is about as good as you can expect in any situation.
@Kangoocar. Re the revenue costs. There are two revenue streams from what I gather (could be more). The net revenue from the Airport Operations budget of $3 million and the revenue from the departure tax. Revenue from the Airport would be $3 million x 35 years = $105 million. Chump change and falls far short of the $250 million cash ‘gift’ outlay for CCC. That’s not CCC’s interest. I don’t know but this $3 million will still be needed to maintain the same personnell and operations even during the construction. Expenses will be still relatively the same. I’m not sure what the plan is here fully.
Departure tax (collected by the Tax Commissiers Office – all part of the same Govt pot) for the next 35 years x $35 x average of 300K visitors and locals travelling is about $367.5 million. A profit with all things being equal at today’s prices of $117.5 million. Increased profits will be based on increases in departure tax and air arrivals numbers which are important nice variables to play around with to squeeze out the best buck. If we reach our heyday numbers of 500K including locals who have somewhere to sleep x $35 (say) x the last 25 years of the deal that’s about $437.5 leaving the island to CCC not to mention what has already left during the first 10 years. Man this deal is so lucrative! I wonder what the particulars of the deal is? Do departure taxes increase should Bda fall short of air arrival numbers and maintain their obligation with CCC? Do departure taxes stay the same should air arrivals increase at certain benchmark levels? I bet my last dollar this is one of the main criteria to maintain CCC’s required profit margin in exchange for their fronting the full construction cost. So CCC can boast sayimg they will eat any budget overruns all they like. They’ve seen the numbers (unlike the Bermudian people) and it’s worth their while with little to no risk, of that I’m sure. No wonder they jumped at the opportunity with lightening speed before anyone else could get their hands on it…! I’m sure there was champagne all around celebrating Aecon’s ‘tip’.
And yes depending on increases in air arrivals and departure taxes this is a sweet deal. Of course increased air arrivals presumes increases in hotel beds and the knock on etc which is a good thing. But again, are we getting good value with this one bid? Too bad they are not into dredging and building cruise ship births. That would get my attention in a more positive way. Hotel beds here are too expensive for the average traveller. Our prices are too high and not competitive and this needs to be fixed especially with Cuba coming online. Cruise ships are the way for the average traveller now. Caymans which are smaller than our population but more land mass can handle at least 5 ships. I wish we could as well.
Why are all your numbers profit? And why do you feel like an entity putting up a 1/4 billion today has no risk?
Then you argue Bermuda isnt worth it…. ….
It is my opinion that in the case of any large projects where large sums of money is to be spent from the public purse and the chance of palms being greased under the table and golden handshakes which very frequently occur.The entire proposal and project must be brought under the public scrutiny and a legal tribunal should always accompany any decisions made in the interest of public protection and probity ..To do less will short change us and leave the floodgate open for corruption …..or at least suspicion of it.
Face facts bermuda! Cruise ship passengers dont spend $ per head like air arrival passengers do – lets face facts – their meals and beds are on board the boat and they only get off for the beaches (until they put beaches on the boats of course) and only if they can get there for under $10!
If we really want the cruise ship $ then we need VOLUME – i.e. we need 5 times as many cruise ship visitors than hotel occupants to really jump start things and we need to provide services AT THE BEACHES where they are likely to drop a few $!
Think about it!
This thread is hilarious. On their very long list of the things that the Gonna Government, the PLP, was gonna do, was build a new terminal. Like so many things the Gonna Government was gonna do, it never happened. Some pretty pictures were drawn up & the gullible followers said “YAY for the PLP”, but nothing happened.
Sort of like the causeway replacement. How many times was that grandly ‘announced’ to be about to start, but nothing happened.
The PLP knew that the terminal needed replacing. Slopping another coat of paint on it does not deal with the age & problems behind it.
Now those same PLP followers who were so pleased that a new terminal was to be built are crying that it is not needed. Make up your minds.
Yes, it is needed. No, we can’t finance it in the normal way. In case you have not noticed, Bermuda is broke. Interest fees on the debt that the PLP ran up are in the region of $500,000 per DAY. Can you not fathom that? It is real money.
Under the circumstances the terminal deal is about as good as we are going to get. At the end of the 35 year deal period we get a functioning terminal. Right now we have a 65 year old dogs breakfast of a terminal that barely functions with daily breakdowns.
If I had commercial property with nothing on it, mine but no money to build, & somebody offered to build what I want but the catch being that they got the revenue plus reasonable interest from rents till it was paid for, plus take care of operating costs, I’d jump at it.
@ Triangle Drifter: Thanks once again for bringing forward the relevant points, but I will only quote this particular one, it says everything. “No, we can’t finance it in the normal way. In case you have not noticed, Bermuda is broke. Interest fees on the debt that the P.L.P ran up are in the region of $500,000 per DAY. Can you not fathom that? It is real money”
I believe it is time for the O.B.A. to get on with doing what must be done a.s.a.p. for the betterment of everyone in the short / long run.
Just imagine how many households can be provided with dollars and jobs etc. from such an expense like this $500,000:00
We can’t finance it because Bob would rather give money to the richest people in the word to pay for their boat party. Really the AC guys have enough money to buy the whole world, and here we have the OBA taking money that they say every day we do not have, and giving it to these guys. I say if they want to have their little boat race here, make them pay for the setup and also pay rent to us for using our island. I don’t see why we should have to put up a cent.
With all the Bermudians that are suffering, our island could surely use the 70 million the OBA is giving to a bunch of billionaires.
This airport deal is just another part of the OBA plot to give Bermuda away to foreign interest, to try and ensure that Bermudians have no control of our own island.
So far the OBA has managed to give away both ends and the middle of the island. Dockyard has been given to the Americas cup boys, the airport to some Canadian company, and Parlaville Carpark to some south americans. At this rate there will be no island left for Bermudians.
What a unique perspective you have.
Yes, some do have fruitful imaginations!
It’ll all come to naught !
This whole situation is a clear case of a lunatic that is continuously stating that something is going to happen, in hopes, that by saying it, it’s going to be. Just because the lunatic is saying the sky is falling doesn’t mean that it is. I don’t care how many bells and whistles, spins and flashy lights you show Mr. Minister, doesn’t mean this deal is going to happen! THE DEAL IS NOT SIGNED YET, AS YOU ARE TRYING TO CONVINCE PEOPLE THAT IT IS CLOSE TO IT!!! We already know you and your mock of an administration are blind, now you are definitely removing all doubt of how deaf and dumb you all are too!!! KEEP THE PRESSURE ON BERMUDA!!! BERMUDIANS DO MATTER!!!!
I truly hope that these companies walk away from this project based on the lack of trust. I look forward to the RFP, once signed and everyone is happy (not every likely), any cost overruns, bend over backwards and just deal with it. More debt for the island or just pretend the airport of which parts were built in the 1940′s will keep standing.
At some point the repairs will eat up that 3 million a year and there will be a deficit. Many seem to count the 3 million as it is a guaranteed number every year for the next 35 years. What was the total for the last 35 years? When I see that, then lets have an intelligent chat on the financial impact.
Reality is that the airport is on government land and they will collect some form of rent (or maybe you think they will give that away too).
If that is the case why hire CCC or AEcon….
The PLP want the contract. Plain and simple. Z.Desilva, or Correia want the deal but it will triple in costs and over until.
@ do better: You’ve hit the proverbial nail upon its head…
Don’t forget the silent partners in the shadows getting their percentages.
I don’t think anyone is questioning whether the airport would be first class or whether AECON can actually do the job.
The question is why weren’t proper procedures followed in selecting AECON, and why won’t the OBA yield and do things the proper way?
The O.B.A. Government Minister Bob Richards has already,(on countless occasions) explained why they’ve taken this approach.You lot are so damn silly at times with your idiotic questions
Timing and urgency. It is different as we are not the ones footing the bill in this circumstance.
The longer we dilly dally the slower recovery and the larger the debt.
PLP blocking job opportunities for Bermudians
Ensuring that we get value is a good thing and asking for more than one bid does not equate to stoping the project! Getting the companies to praise themselves isn’t the best way to show the public how good this deal is but getting their previous customers to validate the value proposition would be a good idea.
All,
The press conference is truly an ill thougthout and self serving process.
The main questions to be asked are:
Why did Aecon think they had to use CCC letterhead as a cover for their visit to Bermuda?
Does CCC and Aecon think that such a ‘cover’ represents a good business tactic?
How do they respond to some Bermudian beliefs that such a tactic ‘using CCC as a cover’ engenders a lack of trust?
Did CCC and Aecon keep Minsiter Richards in the dark about the Aecon involvement at the outset? If so, why?
Because they want to take over the world and enslave us all in the process!
Can someone please spare a thought for the PLP who cannot accept that they lost in Dec 2012.
But then lets face it, they never should have been in power. They pulled the race card to get elected, pulled the race card for 14 years and lost for the very same reason. They have zero substance, and all they ever did was pull the race card.
At some point you have to actually get on and do something – and that is what OBA is doing.
But please everyone, spare a thought for this party in decline – the once great PLP.
They now have resorted to having a foreign preacher do their pleading with the public. Pleading is what it is – a final attempt at getting support – via religious guilt and intimidation.
Thank goodness only a few a falling for it.
RIP-PLP
Goslings would make millions if they opened a rum court at the airport.
Swizzel Air.
Build a hotel on part on the area and have cruises and Castle Harbor will be alive again.
Um gonna go and get a PPP and draft it.
(My idea so don’t steal it OBA).
Fly High-Swizzel Low will be the new name of the hotel.
I need a rum.