Skyport: “$370 Million In Capital Investments”

July 27, 2020 | 13 Comments

“To date we have made approximately $370 million in capital investments in Bermuda, and these investments – together with 100% staff retention – have continued undiminished throughout the Covid-19 pandemic and airport shutdown,” Skyport said.

A spokesperson said, “As recently announced by the Minister for Transport, the Government of Bermuda fully met its obligation under the project agreement and made a payment of $5.7 million into the project’s minimum revenue guarantee [MRG] account. It is important to first understand why the MRG provision was necessary in the Agreement.

“The success of airport development deals is largely dependent on the ability to maintain and grow passenger revenue. For Bermuda, passenger numbers have been in an overall downward trend for some time. For lenders to invest in the airport project, they required some protection against the risk of a continued decline in passenger revenue and economic shock events that could threaten Skyport’s ability to pay off its debt.

“The project agreement expressly prohibits utilization of any MRG proceeds to pay for construction costs or to be used toward profits or dividends. Rather, the thresholds for triggering the MRG were calibrated solely to ensure that the Project is able to sustain its debt service obligations during periods of revenue decline, and what we are seeing today is far more severe than anyone could ever have foreseen.

“That said, Skyport fully appreciates the importance of the issue and we have not yet determined, together with the project lenders, the extent to which the funds recently deposited in the MRG account will be utilized, if at all.

“At this extraordinary time, it is important to highlight the depth of Aecon and Skyport’s commitment to the project. To date we have made approximately $370 million in capital investments in Bermuda, and these investments – together with 100% staff retention – have continued undiminished throughout the Covid-19 pandemic and airport shutdown, notwithstanding the absence of revenue.

“We are also proud of our continued investment in the community through Skyport’s social investment programme and our robust local economic engine – now approaching engagement of 400 local vendors, suppliers and subcontractors.

“As the airport nears completion, we look forward to delivering a state-of-the art terminal and the magnificent gateway Bermuda deserves.”

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Comments (13)

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  1. Jack Archer says:

    Repeat: “That said, Skyport fully appreciates the importance of the issue and we have not yet determined, together with the project lenders, the extent to which the funds recently deposited in the MRG account will be utilized, if at all.

    last 3 words: if at all ….

  2. sage says:

    Hanging your hat where your hands can’t reach it…

    • Should have listened to the People, but no you want to sneak in de House 5am to do your dirty business.

      • bluenose says:

        What dirty business are you referring to?

      • saud says:

        LMFAO…OJ still can’t understand that people actually get up in the morning to go to work, and it’s not illegal.

        OJ..get a job, it’s an opportunity to see what the people, who pay your welfare, do everyday.

      • CHRIS says:

        Not even you could have predicted a WORLDWIDE shut down! Can’t beleive you don’t understand that….

  3. Unimpressed says:

    I find this deal to be “too good to be true” for the beneficiaries. To the point that it seems to me no matter which way you cut it Skyport and Aecon are making out like bandits. You are honestly saying that in this agreement, you will do a quarterly assessment of your revenue and if it falls short we the people of Bermuda will ensure you a minimum guarantee revenue, even though we the people had no say before hand in this deal. Not to mention The Crown who specifically said they need to see the deal before the agreement is signed did not see it either. So tell me this, what happens if you get ten times the minimum one quarter and fall short the next? We still have to pay? Moreover if you make enough revenue to reimburse Bermuda’s public purse were we have paid out are you willing to do so? I ask because there is no way you could make a deal for a thirty year term and not foresee that there will be times of financial downturns. Anyone who knows anything about how an economy works would tell you without a doubt over thirty years there will be highs and lows. So please respectfully hear me loud and clear when I say that this entire agreement has to be put on trial in the privy court and I promise you that if it is overturned people will be going to jail and sanctions will be imposed on these profiting companies.
    Have a blessed day!

    • Double S says:

      “So please respectfully hear me loud and clear when I say that this entire agreement has to be put on trial in the privy court and I promise you that if it is overturned people will be going to jail and sanctions will be imposed on these profiting companies.”

      Hahahaha. You really are clueless if you believe the above. You want to talk about shady contracts, check the Commission of Inquiry and the numerous PLP capital project contracts if you want to see people who should be in jail and sanctioned. Hahaha.

    • sandgrownan says:

      bwwahahahaha…..perhaps if we weren’t broke, we wouldn’t need a PPP. By the way, how is the hospital doing?

    • WillSee says:

      They ,the Gov or skyport, must have business interruption insurance whic would be renewed every year.
      Who is responsible for renewing the policy?!!!

  4. Joe Bloggs says:

    Dear Skyport,

    First, thank you for your belief and investment in Bermuda.

    Unfortunately, your good news and confidence in Bermuda does not fit with the narrative of the PLP Government and that will almost certainly remain the case for the next 30 years. If you need proof, just look at the post above by someone using the name “Onion Juice”. That poster is a PLP promoter.

    Whilst Bermudians and visitors and others will happily use your new airport, you must understand that the PLP Government will always push the “Bermuda for Bermudians” publicly and that means that Skyport will be a scapegoat.

    Never mind that the PLP Government has entered into PPP arrangements in the past (King Edward VII Memorial Hospital) and proposes to do so again (Ottiwell Simmons Arbitration Centre), that is different because the PLP Government did it.

  5. James says:

    If the airport was financed by Canadians why do we pay about $35 Airport improvement fee on every ticket we buy? Where is that money going? You can see it in the breakdown of your ticket price for the last several years.

  6. Jah Rastafari says:

    We the people did have a say in this contract. We voted in the OBA and they made the decision for a new terminal. If we had voted in the PLP and, remember they were the original supporters of a new terminal, who know what they would have agreed with the developers?

    We are in deep do do because of COVID, not the OBA, and we may find that for years we are paying these guarantee payments. On option is to buy out the developers and take this on directly. Paying out 12 to 15 million dollars a year is another option. Lets face it if local don’t travel and tourist don’t come we are totally screwed as is most of the planet.

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