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New airport terminal plans revealed

The site of the new airport terminal

Bermuda’s new airport terminal would include maximum shopping and restaurant options — as well as jetways at eight gates to protect passengers from the elements.

Aaron Adderley, head of the Department of Airport Operations, told The Royal Gazette that part of its revenue could come from repurposing vacant runway space for alternative energy.

Mr Adderley also cautioned that the figure of $200 million cited as a price tag by Finance Minister Bob Richards was “by no means final”, even if it had become ingrained in the public’s mind.

Government sealed an agreement with the Canadian Commercial Corporation on November 10 to build a repurposed terminal, which would be gradually paid off under a tailored public-private partnership.

Asked about airport revenues, Mr Adderley pointed out that while the layout of the Government figures made the airport look like a money-losing venture, LF Wade International Airport actually takes in $3million to $3.5m annually when departure tax is factored in.

“The numbers are not strong enough to pay for $200 million,” Mr Adderley said.

Future revenue streams had to be capable of ensuring financial viability, he added.

Converting the vacant “finger” of runway into a solar energy facility has been discussed for several years now.

According to a 2011 Belco report, the runway, which juts south of the airport into Castle Harbour, could accommodate an 80-acre solar farm.

Mr Adderley said the airport would benefit substantially from any such repurposing.

“It’s high on our agenda and is part of our three-year strategic plan,” he said. “The alternative energy site is critical. Even if we didn’t have this project, from an operational standpoint our need is two fold: increase our revenues and decrease our costs. Alternative energy is an option which would certainly allow us to minimise our power consumption costs. We have to wait for other legislative regulatory changes to be advanced by another Ministry before we can finally move forward.”

A new terminal would necessarily have modest retail options, given Bermuda’s limited traffic.

“We’re never going to have the volume necessary to justify having a retail mall,” Mr Adderley said. “However, we want to ensure that there is a choice in food and beverage offerings and retail goods in general. We have a fine line to walk to ensure that there is enough of a choice for passengers, but at the same time, ensuring that there is enough passenger volume to sustain multiple vendors.”

Aspects of the design, plus the new location at the west end of the airport, date back to a 2008 master plan that Mr Adderley said had been “too good to leave sitting on someone’s desk unused”.

“That plan called for the proposed site that we will be using for the new development,” he said. “It was chosen to avoid the storm surge that threatens the existing site located so close to Castle Harbour. It will also enable us to minimise the amount of work we have to do with our taxi ways and apron network.

“There will be a need for some changes to the network, but it will be minimised.

“Our objective is to take those initial design concepts and modify it to ensure that it fits within the new financial parameters we have for the project. Parts of the terminal facility date back to the 1940s and we have met or exceeded its life expectancy.

“Though we’ve done a fair job in hiding the warts so to speak, the roofing in parts of the facility, plumbing, sewage and other mechanical systems, are in need of replacement in many instances. The cost of maintaining an ageing infrastructure is highly cost prohibitive.”

<p>Privatisation accusation</p>

PRIVATISATION

ACCUSATION

A redeveloped airport under a deal with the Canadian Commercial Corporation would privatise Bermuda’s airport, Opposition Senator Diallo Rabain said.

Senator Rabain chastised Government for embarking on the CCC deal with no tendering process, and to “a company we have now found out has been blacklisted by the World Bank, and involved in lawsuits in six different countries”.

However, Junior Public Works Minister Lynne Woolridge responded that it had been a developer that was blacklisted — “not the organisation we have entered into an agreement with”.