Minister: $8.45 Million MRG Payment To Skyport
To date, the Government has made five Minimum Revenue Guarantee [MRG] payments to Skyport, with the most recent $8.4 million payment covering the shortfall from July to September 2021, Minister of Transport Lawrence Scott said.
Speaking in the House of Assembly today [Nov 12] the Minister said, “On 10th October 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 July to the 30th September 2021 and the guaranteed minimum regulated revenue for the same period, which was an amount totalling $8,451,053.51.
“To date, we have made five MRG payments to Skyport totalling $40,964,566.74. Although we are trending in the right direction [each consecutive payment has been lower than the previous one], even with the increased air routes and passenger traffic resulting from our new Air Service Development Strategy, we anticipate that MRG payments in 2022, could be over $10M.”
The Minister’s full statement follows below:
Mr. Speaker, on the 23rd July 2021, I advised this honourable House of the payments 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 this month.
Mr. Speaker, on 10th October 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 July to the 30th September 2021 and the guaranteed minimum regulated revenue for the same period, which was an amount totalling $8,451,053.51.
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 continues to honour its obligations in this regard, including making this latest MRG payment of $8,451,053.51 to Skyport.
Mr. Speaker, to date, we have made five MRG payments to Skyport totalling $40,964,566.74. Although we are trending in the right direction [each consecutive payment has been lower than the previous one], even with the increased air routes and passenger traffic resulting from our new Air Service Development Strategy, we anticipate that MRG payments in 2022, could be over $10M.
Thank you, Mr. Speaker.
If only we had bought insurance.
Yes, all of us that held a crystal ball agree on that . However, we also wonder why the present government that made a similar deal and sold off our hospital business didn’t buy insurance against Covid for heath care? I mean they made the same kind of deal and have been very critical of the OBA Airport deal even though they didn’t have a better option, and if they knew better , why didn’t they buy insurance to cover the spikes in our health care. The same people MPs that are critical of the airport say nothing about why healthcare has gone up $300+ per month in the last three years. How come if they are preaching about lowering healthcare, the prices keep going up? And if you are going to blame Covid, why didn’t you buy the same insurance that you are critical of the OBA for not buying for the airport? I mean you guys do claim to have all the answers?
Burt could have bought pandemic coverage for the airport. He didn’t.
1.2 m and 800k wouldve assisted
The OBA gift that keeps giving just like Cross Island, Southampton Princess and Morgan’s Point!!!
first the SPrincess deal is a plp deal but beyond that the airport would not be needing the guarantee if we had travel numbers equal to pre Covid …the plp uses that in every other instance and somehow all is well,,lets go back to pre covid and visit the hospital and the price we paid and the price we continue to pay , but no lets shuffle past that. The plp has screwed our country of 2 billion dollars and all is well. The hole is so deep we no longer have the ability to get out
get real and take the blinders off we arent playing make believe this is for real
“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 continues to honour its obligations in this regard, including making this latest MRG payment of $8,451,053.51 to Skyport”
Seriously? “The Government continues to honour its obligations in this regard.” That is news? The minute the PLP Government refuses to honour its legal obligations we are done. The Bermuda dollar will go the way of the Zimbabwe dollar.
Compared to the interest on the debt building PLP airport and the covering of salaries if govt managing it, we are still better off with our new airport. PLP like to ignore that reality.
Well of course – they’ve allowed the wheels to come off tourism and we’ve lost significant flights rather than added them (which the original plans for the airport envisaged)
Jet blue dude is doing a good job losing flights. In thought he was the know all.
How come the people complaint about the airport say nothing about.
The unknown entertainer.
1.2 to the Dr.
Port royal,
Dockyard
Berkely
The Hilton on south shore…lol
The hospital.
And where’s the cedar, and to think they are going to don the incinerator
Your forgot the emissions testing Centre, BHC scandal, the playboy mansion…… oh, and the platinum era!
Don’t forget the $185 mill the clown party got us hooked on.
The $100m wasted on Grand Atlantic, still standing empty.
Recently Had my first experience at the “new airport”. All I could think was all that money for a gigantic warehouse.