Ministry: Airport Project Financial Comparison

August 31, 2016

The Ministry of Finance released a Financial Comparison Report on the airport redevelopment project, saying “the purpose of this paper is to provide additional information to the public about the financial characteristics of various procurement options available for the Airport Redevelopment Project and the benefits of the procurement option selected relative to the most viable alternatives.”

A spokesperson said, “The report provides additional information to the public about the financial characteristics of various procurement options available for the Airport Redevelopment Project [the “Project”], and the benefits of the procurement option selected relative to the most viable alternatives.

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“The report is accompanied by an executive summary which summarizes the broad options, their pros and cons and why the Bermuda Government has made the decision to move forward with the G2G, Bilateral Government to Government option.

“The report was prepared by the Ministry of Finance drawing on the work of the Government of Bermuda’s [GOB] various advisors on the Project. The 12 page report as well as an executive summary can be found on the Bermuda Government Portal here.”

The 12-page report follows below [PDF here]

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Comments (25)

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  1. Curious Mind says:

    The OBA must think people are dumb.

    Seems to be done to justify their selection of Aecon. If they project is supposed to costs $250 million, why are they using a figure of $575 million for the non-privatisation options.

    I wonder if this report was signed off by Deloitte? Will any accounting firm put their name to this or this is just the OBA giving us something without any independent review?

    Looks like we’re being ‘fuzzied up’ again.

    • Youngbda says:

      go sleep your making yourself look mindless

      • Curious Mind says:

        Care to add any valid points? Like why they would compare the costs of a $250 million airport to a $575 million airport.

        Wouldn’t it make the most sense to compare 2 $250 million airport projects under different structures.

        • Jus' Wonderin' says:

          Ya thinkin too hard bra go lay down…

        • Onion Juice says:

          I think valid is to much thinking for them, it’s much easier for them to post insults instead of sensible dialouge.

          • Anbu says:

            Lmao. Onion juice talkin bout sensible dialog. Thanks for the laugh. What happened? Run outta insults?

      • High Road says:


    • john says:

      575 included a new causeway bridge included in the airport. BOB really is playin bermudians as fools. Looks as though we need ti hit the hill again

      • Politricks says:

        No it didn’t.

        And even if it did do you think it would cost $225mn for a new causeway.

    • jt says:

      A lot of people are.

  2. Onion Juice says:

    This is the best deal for Bermuda, um so there was no tender, so who did we compare this price with?

    • Tom 1 says:

      LOL Because the tender process has worked so well for us in the past ex. Grand Atlantic, Berkeley Institute, Heritage Warf just to name a few.

    • Build a Better Bermuda says:

      You can easily draw comparisons to the multitude of other airport developments that our Caribbean neighbors have been doing in the last few years. By comparing their various developments, what they built, to what extent they built, and their average local construction costs as relates to what we want to build and our average local construction costs, a reasonable accurate cost comparison can be established.

  3. Reason says:

    This report still fails to address one further option. WHY AECON? Aecon is one of the top 3 contractors in canada.. But there are others, who have also built airports. Why not PCL, Ellisdon, or Graham group? The same way we are in talks with aecon we could have gone to any of the top 3 construction companies in canada via CCC and asked for a quote. that way we’d still have the same guarantees, but a more competitively priced contract. It would have satisfied the need for tender without using the flawed tendering process currently utilized by large projects.

    Bottom line: Aecon’s sole assurance that this is a good deal is NOT good enough.

    • Micro says:

      Probably the only argument that makes sense on the matter.

    • Build a Better Bermuda says:

      Because they took the initiative to propose a solution when no one else did.

  4. Reason says:

    “Specifically, passenger traffic would be higher with a private entity operating the airport which will lead to higher accommodation tax revenues compared to the status quo”

    so having a private company run the airport would increase arrival numbers?
    What BS are they trying to sell us??

    • mixitup says:

      Absolute nonsense! Is what they are feeding us, and some of these posters eat right out their hands with no independent thought.

      • Jus' Wonderin' says:

        > some of these posters eat right out their hands with no independent thought.

        Just like you and your beloved PLP/UBP lmfao…except you believe it as all truth!

  5. mixitup says:

    It kills me how this Gov’t (OBA) think the people are fools.. The report commissioned by the PLP would have indeed costs over 500 mill.. However what this current group are not tell us is that they used the same plans the PLP commissioned and only dramatically scaled it down…

    In fairness to the PLP Gov’t at the time, they did not intend to move forward with the original plan in it’s entirety either but wanted a plan that showed a future vision for an Airport with everything needed, and like the OBA/Aecon did the PLP likely were going to do, trim the fat..(Hence the reason they didn’t start immediately) What was removed from the old plans, to bring it down to the current price are as follows:- A redesign of the structure from an attractive building to a Sam’s Club type warehouse with offices, an adjacent ferry terminal was deleted that would have seen the Airport as a ferry stop and for future hotels to transport via water directly from the Airport available Gates went from 9 in the original plan down to 6 in the present plans, Office space and square footage shrunk, Baggage claim area from 4 belts down to 2, BDA Customs and US Customs areas downsized along with many more technical advancements removed. This project in it’s current form has not been tailored for the future needs of Bermuda but for the profit of Aecon and whomever else is drooling over this..

    • jt says:

      PLP trim the fat…now who thinks people are fools?

    • Build a Better Bermuda says:

      Actually the PLP didn’t proceed because they couldn’t figure out how to pay for it. The OBA has dressed it down to trim off the fat, but they have also made the design one that can be expanded on in the future, when expansion is needed. And why shouldn’t a construction company make a profit on a project, they are after all taking a huge risk to garauntee it’s construction, because they will have to deliver it on time and won’t get paid for any overruns. Besides, profit is the point of business… it’s what every business on this island is trying to do too, and some will off this project if they bid themselves right.