Minister: Another $7.5 Million Paid To Skyport

July 23, 2021

The latest payment by the Government as part of the Project Agreement with Skyport was approximately $7.5 million, and to date the Government has paid over $32 million, Minister of Transport Lawrence Scott said in the House of Assembly today [July 23].

“We received a contractual reimbursement at the end of 2020 in the sum of $4,195,088.04 and therefore, to date, we have made net MRG payments to Skyport totaling $28,577,460.44. We expect to make additional MRG payments in 2021; however, we do not have estimated amounts at this time,” the Minister added.

The Minister’s full statement follows below:

Mr. Speaker, on the 7th May 2021, I advised this honourable House of the payments being made as set out in the Project Agreement between Skyport and the Bermuda Airport Authority. I wish to provide the House with an update on the latest MRG payment made to Skyport earlier this week.

Mr. Speaker, on July 9th Skyport provided the Airport Authority with a formal notice of the shortfall between the actual airport regulated revenue collected for the period from the 1st April to the 30th June 2021, and the guaranteed minimum regulated revenue for the same period, which was an amount totaling $7,579,778.10.

Mr. Speaker, earlier this year I advised the House that the Project Agreement contains a pre-determined payment schedule of the MRG amounts for each calendar quarter of the 30-year contract. The Government has honoured all of its obligations in this regard, including making this latest MRG payment of $7,579,778.10 to Skyport.

Mr. Speaker, to date we have made four MRG payments to Skyport totaling $32,772,548.48. We received a contractual reimbursement at the end of 2020 in the sum of $4,195,088.04 and therefore, to date, we have made net MRG payments to Skyport totaling $28,577,460.44. We expect to make additional MRG payments in 2021; however, we do not have estimated amounts at this time.

Mr. Speaker, the Bermuda Airport Authority continues to do an excellent job in managing this complex matter as part of its oversight responsibilities. The Bermuda Airport Authority has met, and continues to meet, all of its contractual obligations relating to the MRG payments.Thank You, Mr. Speaker.

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Comments (18)

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  1. Verdad says:

    Thanks oba!

    • Jus' Asking' says:

      “…to date, we have made net MRG payments to Skyport totaling $28,577,460.44…”

      Please OBA, spin this one. PLEASE!!! ;-)

      once an asset, now a liability :-(

      • Now Ya Nice says:

        No spin. Now that you have the advantage of looking back. Please advise how the PLP would have built the airport and saved money? And you can’t say they would not have built it because it was on their election platform. we didn’t have money so I assume – borrow it? Okay so let’s say you did get another loan, work out what the interest alone would have been. Now also consider that had you borrowed the the money to build you would have had to pay that money while the airport was pretty much closed during Covid and no income? Plus wages, electricity and so on. What would the interest , us expensises minus include – your losses have been?! I await your reply. I bet even after all this time, you can say how you would have financed it – for less.

    • Sam says:

      At least we got something tangible for their debt.

      The PLP have delivered $3.3 billion, and have given us nothing but stress.

      $28m looks a steal by comparison.

    • trufth says:

      or should the thanks go the PLP for discouraging tourists from coming here to enjoy our 14 days of testing while standing out in the hot sun for hours disrupting their holiday plans of actually enjoying their time here and spending money here?

  2. dunn juice says:

    800 k to invisible entertainer.
    1.2 m to doc.
    Over paid unemployment.
    At least air port looks good.

    • Now Ya Nice says:

      Don’t forget Sandy’s 360, and Grand Atlantic disasters, Dlbe building contract , Dockyard Pier, Port Royal GC….and many more..including overpayment to airport .

  3. Question says:

    And yet you could have bought insurance. Thanks Burt.

  4. wahoo says:

    He makes it sound as if it would cost us nothing in wages and maintenance to operate an airport in a climate where many flights have been canceled and people are reluctant to travel. He forgets to mention that his government wanted to spend $500M on a new airport with borrowed money….and we know their reputation with building anything at all.

    Since he likes throwing around big numbers he should tell “Mr. Speaker” how much we pay in interest on a daily basis to simply cover our debt – a debt created by his government long before Covid got here. Anyone can wear a suit and tie.

  5. Ringmaster says:

    Let’s have some transparency. The old airport produced tax revenue in the same way as the new airport produces revenue. With the closure and reduced airline service, what was the reduction in tax, as this would have reduced Government’s revenue. Bet it is about the same as the MRG, except Bermuda is getting a new airport.

  6. Marine Life says:

    Beautiful Air Terminal, Horrible Finance Deal! The National Debt will continue to climb! You my friends will pay dearly through your taxes. This situation is a Millstone tied to Bermudians necks.
    We never got a new and much improved Causeway with this deal. Causeway talks have been going on over 20 years, still the same archaic piece of garbage that pedestrians or pedal cyclists cannot use. Fabian was not the only Hurricane that caused damage. I have photos of other storms causing walls to fall on that horse path. Why hasn’t Colonial Burch spearheaded this project before Covid hit? He is a man that usually gets thing done. Public Works. Beautiful Terminal, horrible bridge to welcome people, what a joke. I hate crossing those Bailey’s bridges. They are designed to be temporary while another permanent structure is being built. Not designed to be permanent! 17-20 years is the limit on these bridges. Bermuda is a slowly sinking ship. Too many debacles dot the social and financial landscape. Not a place to be proud of. Only what God created in the original topography of this Island is what is pretty and calming. Man has ruined the tranquility of spirit living here.

  7. John E. Thorne says:

    The airport has to be paid for as they did not build it for free as a gift to the people of Bermuda!
    Don’t forget the $800 million unaccounted for during the PLP’s 14 year reign of terror! What do we have to show for that?

  8. kevin says:

    Covid …pretty simple less travel less revenue seems to be the plp choice of excuses for everything ..we now have a first class terminal that we are proud to welcome all. Why do we not recognize the millions we pay out monthly on the plp hospital …seems like we need to keep that quiet
    This plp government are clueless and actually embarrassing when they make half Xssed decisions and hope you all forget them.
    They gotta go

  9. Fisherman says:

    Ask the Company at National Stadium, Award Brown and others who have helped clean out the money left by OBA which could assist with Pop’s blundering spending. Couldn’t put pencils in a row, add, subtract, multiple and divide effectively, thus our debt. Bermuda should make those PLP officials pay by cutting salary to 200.00 per week from what you have given yourselves monthly.

  10. wing nut says:

    Hey jet blue dude, since your living in a glass house shrowing boulders.
    Port royal
    Court house
    Dont forget the hospital.
    Add those figures and share.

    • Question says:

      Don’t forget the $100m or so on Grand Atlantic, still empty 10 years after completion.

  11. Ringmaster says:

    The MRG will be around for some time purely based on the lack of hotel accommodation. Until the Southampton Princess is back and convention business resumes there won’t be the capacity to allow enough visitors to cover the MRG. What are the Minister of Tourism’s plans for increasing the number of beds? Is there a new hotel about to open, thanks to the PLP’s forward planning?

  12. jon says:

    you all are still some fools arguing over your support for either party. Non of them are helping you to better your lives and yet you still come on here blabbing your mouths over what your party has done better then the other. Wake up and stop this party allegiance and start holding all of them accountable for their poor governance.