Maybe, just maybe the reason they did not do the RFP is that they got some quotes informally and this is actually the best deal.

End of the day, full disclosure so that everyone can put their minds to rest and move forward. Enough with the he said she said or us against them. End of the day, ALL on this island will carry the burden. not just Us or Them!

Actually it is Thirty Five (35)years Mr. Burchall

it is now $50

There are expenses attached to the revenue figure quoted by Mr. Burchall and the PLP.

To not include the expenses, which are significant given the fact that the airport is barely profitable, is misleading at best.

But I do agree with that the constant referring to revenues as if they are no expenses attached is misleading at best.

Does it have cap/ceiling?

Can charges be increased to accomodate profit growth?

Maintenance…. folk mentioned it.
Have they remembered that maintainence can be trimmed/curtailed to reduce costs?

Who is doing this maintenance currently? How much local employment will be secure when the SENIOR PARTNER (AECON/CCC) decides to mitigate their costs by replacing the current companies with cheaper foreign labour?

You can’t tell by now that the old call to arms propaganda tactics don’t work anymore David J.Sullivan?

Enough with the card tricks…. learn how to sing or something.

The airport makes a profit of 3 million a year. That is money over and above what it takes to run the airport. So being generous, lets assume the 3 million is guaranteed for 35 years (being generous). By my math, that is 105,000,000. It will cost money to get new vendors in and if none come in or they don’t fill all the venues, that means the developer has to pay (lost revenue) or lower prices to attract new vendors.

Lets assume that there are 400,000 passengers per year for the departure tax at 40 per person. That adds up to 560,000,000 over 35 years. By everyone’s own admission, the profit they stand to make is 105,000,000 because the departure tax will go to service the debt that is taken on to build this project. Because the money is coming from somewhere and if they spend 250 million that leaves 310 million left from the departure tax. Any cost overrun is assumed by the developer.

Looking at the hospital, how much was it over budget? Since I am generous, lets assume at least 100,000,000. Now we are down to 210 million plus the 105 million in non guaranteed profits.

You know what, lets just all suck it up and accept 1 billion of new debt because we can all afford it or do nothing, keep patching up the present airport (because it is quaint) until it will cost 500 million to develop a new terminal. By that time, we can approach the Chinese and they will do it but no one will have a job because they can fly in Chinese workers for a ton less. But alas, at least it is a better deal.

We have to reduce the amount by material costs which have to be imported, any non Bermudians that will have to be employed (this will be necessary due to specialist skills or simply because of the numerous simultaneous construction jobs) and the profit amount.

Yes there will be a benefit if the projects proceed but we have to be more realistic (and honest) about the real impact on the local economy.

Airport departure tax is $35 per head, gross. I do not have the figures for landing fees and rental revenues, nor do I have the figures for payroll, utilities and other costs, but my simple math tells me that to arrive at a $900 million profit over 35 years would mean about $26+ million profit ($900,000,000 /35 years) each year or about $67+ PROFIT per head ($26,000,000/380,000 air arrivals). Is this a realistic figure?
According to some financial experts, payroll alone should be about a third of revenue – which would indicate that Mr. Burchall is working on an expected revenue of much more than $203 per person ($67+ X 3) as the cost of utilities etc. needs to be accounted for before arriving at a profit. That figure seems a bit high to me.
Of course, my math could be totally screwy.
I’d appreciate very much if Mr. Burchall could do an addendum to this piece showing how the figure of $900 million going to the developer was arrived at.

Is the new airport project necessary?

If necessary, is this the best deal?
An RFP could have at least shown if there was a better deal than this one.