The Minister of Cabinet Office with responsibility for Government Reform, the Hon. Lovitta Foggo, JP, MP has today addressed the questions raised related to the Bermuda Post Office Mail Processing Centre (BMPC) vacating its publically owned premises at the L.F. Wade International Airport to relocate to a privately owned facility at Mills Creek.
Minister Foggo said: “As I stated in Parliament on Friday, September 22, the move is required as a result of an Agreement entered into by the former Government, the Bermuda Airport Authority and Project Co (Skyport) which requires the government to pay rent for a building that it owns.
“The agreement requires the Post Office to move by September 30<x-apple-data-detectors://5> or pay rent at market rate, which could be in the region of $30,000 per month, during the months of October, November and December. If the Post Office has not moved by December 31<x-apple-data-detectors://7> then the government must also pay a one-time penalty of $600K and continue to pay monthly rent going forward. If the government stays at the Airport after it pays the penalty, there are other consequences as well. The airport project scope will change. Aecon will be released from its obligation to develop and construct the Prefunded Cargo Facility. Aecon will also not have to undertake any maintenance or repair work for the space occupied by the Post Office.”
Minister Foggo added: “So to be clear, paying the $600K penalty, having to continue to pay rent for a government owned facility, and increasing the cost of the airport project overall as a result of an Agreement made by the former government is in real terms too costly aproposition.”
“Efforts continue towards vacating the space in a timely fashion.”