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.
It will not cost Bermuda millions of taxpayer money.
It will not send millions of dollars out of Bermuda.
- All airport revenues will be collected by Bermuda Skyport Corporation Limited, a special purpose Bermudian company established solely to deliver the Project. Skyport will be predominantly staffed with Bermudians. Aecon will be a major investor in Skyport.
- Structures will be put in place, including oversight by the Bermuda Airport Authority, to ensure that airport revenues are applied strictly in the following order of priority:
1.operations and maintenance expenses, including paying staff,
2.capital expenses, including repaying loans and investments.
- Dividends to investors will be available only after the above expenses are covered and provided for. The Minimum Regulated Revenue Guarantee protects lenders, not investors.
- Investor’s projected returns have been independently benchmarked to hundreds of other P3 and airport concession projects worldwide, and evaluated as fair and reasonable relative to the risks being transferred to airport investors.
- Airport revenues – not Government debt or taxes - support loans and investments in the new, state-of-the-art airport infrastructure.
- Through a revenue sharing agreement, Skyport will share revenues 50/50 with Bermuda once equity investors have recovered their initial investment.
- Government provides limited revenue guarantee support to project lenders in the event of revenue downside; in turn this enables Skyport to achieve an investment grade credit rating and low cost financing. The revenue guarantee does not protect investor profits.