Airport Redevelopment Project (ARP)

The Government of Bermuda is proposing the Airport Redevelopment Project (ARP) to build a new passenger terminal building at the L.F. Wade International Airport.

The project includes the construction and operation of a new terminal at a different site within the airport grounds.

Also included is:

  • construction and operation of additional apron space;
  • installation of apron lighting systems;
  • modifications to taxiway interconnects and interface;
  • installation and operation of a new aircraft hydrant refuelling system; and
  • de-commissioning of the majority of the existing terminal, the remainder of which may be used for airport operations and office space.

The project would meet modern safety standards and growing demand for passenger capacity, which cannot be achieved by modifying the existing terminal.

The Government of Bermuda, the owner of L.F. Wade International Airport, has identified the Canadian Commercial Corporation and their sub-contractor Aecon to finance, construct and operate the project over a 30-year concession period.

Why not renovate the old terminal

Fixing the old airport wouldn’t be cheap – and it still would be an old airport. Bermuda would need to borrow $184 million for critical maintenance and improvements in the first two years alone.

Why not tender

A traditional procurement process would require Government to prepare a design and the associated traffic forecasts, environmental and geo-technical analysis, financial modeling and other studies, reports and project data necessary to compile a comprehensive Request for Proposal package at an estimated cost of $20 million.  In light of Bermuda’s debt obligations and expected minimal interest amongst private lenders for airport projects the size of Bermuda’s (i.e. less than 1 million passengers); the Government opted to sole source CCC/Aecon. 

The scope of the agreement

The Agreement stipulates that the Government of Bermuda will enter into a 30-year concession agreement with a Special Purpose Entity, Bermuda Skyport Corporation Limited (Skyport). 

The cost

Based on initial cost estimates developed by Aecon, Project construction costs are expected to be $267 million (inflated) and Demolition/Renovation Costs (inflated) $16 million.  This represents a significant decrease from the BD$514 million cost estimate that HNTB put forward in the 2008 Airport Master Plan and reflects a revised architectural design and reduced infrastructure redevelopment proposed by Aecon. 

How will the new airport be operated?

Bermudians will continue to oversee airport operations through the Bermuda Airport Authority (BAA), a new Government of Bermuda airport quango.

The Bermuda Airport Authority will supervise airport operations, quality standards, and other performance obligations of the airport operator, Bermuda Skyport Corporation Limited (Skyport), and the BAA will be responsible for the approval of regulated fees.

The Bermuda Airport Authority will provide for retained Government services – air traffic control operations, meteorological services, airport fire and rescue services and ground electronics. The Bermuda Airport Authority will also be responsible for additional revenue generating opportunities.

The new Airport Terminal Building and the entire L.F. Wade International Airport complex will remain the property of the Government of Bermuda. The vast majority of the staff from the existing Department of Airport Operations will move over to work for Skyport to operate and maintain the new airport. 

Information of interest

 

Environmental assessment

The Government of Bermuda requested that an environmental impact assessment (including socio-economic impact assessment) be done for the proposed project. The environmental impact assessment is a study of the project and its potential impacts on the environment and people of Bermuda, used to inform the decision-making process.

Find more information on the Airport Redevelopment Project on the Aecon Facebook Page.

BERMUDA GOVERNMENT UNVEILS DESIGNS FOR BERMUDA’S NEW AIRPORT

Airport design unveiling - YouTube

 

 

 

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