Dear Sir,

The allegations, counter-allegations, misinformation and opinions expressed in connection with the proposed development of a new airport know no bounds. I fear the basic facts have been lost in the ensuing mud. Let us simplify things:

• Government believes Bermuda needs a new airport. The existing airport has been upgraded and patched up over the years but has reached the stage when patching up is no longer an option.

The airport is not up to world standards, and is costing too much to keep it in running order. In fact, a few weeks ago it was without air conditioning for a whole week. Ask any airport worker how they fared during that period and they will tell you it was more than uncomfortable and tourists must have thought they were arriving in a third-world country.

• Bermuda is up to its eyeballs in debt. It is very unlikely that it would be able to borrow money to finance a new airport itself and, in the remote possibility that it was able to borrow more money for such a project, it would be at a very high interest rate.

• CCC, a reputable quasi-Canadian Government entity, was alerted by a Canadian company called Aecon to the fact that the Bermudian Government was desirous of building a new airport.

Subsequently, CCC contacted Government and a proposal is still in the process of being worked out with regards to the construction of the proposed new airport.

• Unlike the deal made in respect of the hospital, in which Government was responsible for any extra costs due to overruns or the project not being completed on time, CCC has accepted such costs would be for their account and not that of Government.

Since they would be liable for any extra expenses/costs, CCC quite naturally wishes to choose the company who will build it, and they have chosen Aecon. They have worked with the company before on building new and upgraded airports overseas and in Canada.

• The OBA Government stated in the past that, in the light of previous disasters where much smaller projects came in over budget, it would ensure in future full transparency and open tendering.

• Be that is it may, since CCC will be financing the development of the airport and will also be responsible for any extra costs over budget, they quite naturally insist on choosing a company to be in charge of the development with which they have worked before, and which experience has shown to be competent and trustworthy.

• Going out to tender is not an option in this case. The entity (CCC) which is financing the project and bearing the risk will only be prepared to finance it if it is able to choose the developer.

• Tendering is not mandatory. It is not a necessity since any financial risks will be borne by CCC and not Government.

It is intended that the income from the new airport would be used to pay off the cost of building, which is estimated to take 30-35 years.

CCC will oversee the running of the airport and receive the income until such time as the debt is paid off. The airport will still be owned by Bermuda during this period and Bermudians will be employed in the various areas.

Once the debt is repaid, Bermuda will revert to overseeing the running of the airport. It will be in CCC’s interests to oversee the running of the airport efficiently, as this will assist them to receive the money owing to them ahead of schedule.

Government believes that the construction of a modern airport will provide many jobs in the construction industry in the short term and more jobs at the airport in the long term.

Bermuda’s hotels are upgrading in the hope of encouraging more tourists to our shores. Other hotels are being built to higher standards than previously.

The America’s Cup is on its way and the media coverage we receive should put Bermuda back on the map.

Do we want a new airport which will compare favourably with airports in other jurisdictions? Or are we happy with a rundown airport? We are fortunate to have been approached by CCC, which should help us to build a first-class airport Bermuda will be proud of, and at a lower cost than Bermuda could achieve even if we were in the unlikely position of being able to borrow the money.

Anne Pearson