The Bermuda Government’s airport development project is to take shape, two years after the deal first went public, under key pieces of legislation waiting to go before MPs in this session.

According to the Government Whip, the Airport Authority Act and the Airport Redevelopment Concession Act must sit on the House of Assembly’s order paper for at least two sittings before coming up for debate.

Since both were tabled on Monday by Bob Richards, the Minister of Finance, they should remain off the agenda during next week’s sessions.

If approved, the deal with the Canadian Government through Canadian Commercial Corporation and Aecon, the Canadian contractor, would mark the island’s second public-private partnership after the hospital’s acute care wing.

The agreement is for a 30-year concession with an entity thus far known generically as Project Co — which The Royal Gazette understands would do business as Bermuda Skyport Corporation Limited.

CCC’s involvement would cease once the new terminal became operational, and Project Co, owned by Aecon with a minimum of 35 per cent equity, would take over running the airport.

According to an overview issued by Mr Richards, L.F. Wade International Airport would be leased to the company over the 30 years of the agreement.

In addition, under the Bermuda Airport Authority Act, a new entity would be set up to take over from the Department of Airport Operations — currently part of the Bermuda Government.

The BAA would oversee the redevelopment, along with the operation, maintenance and management of the airport. The quango would carry responsibility for the Government’s retained services, as well as holding the airport to quality standards, while Project Co would carry out operation and maintenance until the concession term ends.

While the airport land would remain Government-owned, it would be leased to the developer by the BAA with ministerial approval, for a period not exceeding 30 years.

That agreed period cannot be extended, meaning that the airport’s operation, along with its assets, would return to the Government after that term.

Left off the lease would be the unused runway jutting into Castle Harbour known as the Finger, which the Government would retain. Mr Richards has said that solar energy is planned for that vacant strip, to assist with the energy subsidy for airport electricity. However, retailers in the new terminal would not be entitled to a break in electricity costs.

The Authority’s board, overseen by a chief executive officer, would consist of five to seven directors, showing qualifying experience in areas ranging from civil aviation to administration.

The Act also covers the transfer of staff from the Department of Airport Operations into similar roles under the BAA — effective from an approval date.

Staff who failed to accept the transfer into the BAA, and refused going into another Government department, could have their employment terminated.

According to Mr Richards, jobs across the Authority and Project Co are likely to increase by 50 per cent over present airport staffing.

Under the terms of a second piece of legislation, the Airport Redevelopment Concession Bill, the Government grants relief from a wide range of payments in connection with the project: import duty, stamp duty, land tax, future taxes of profits or income, work permit fees for redevelopment employees, as well as the employer’s share of payroll taxes.

Aecon and the developer would get permission to pay staff in US dollars, exempted from exchange controls and foreign currency purchase tax.

Finally, the Bill would grant exemption from environmental legislation and lawsuits relating to any pre-existing contamination of the airport lands.

Since it was announced, the airport proposal has proven a particularly difficult sell for Mr Richards.

The Minister’s top justifications have been the poor condition of the present terminal, and the need to boost employment without increasing the Government’s debt.

Mr Richards has given the construction costs as $267 million, with the demolition of the old terminal costing $16 million, including some renovation costs. The construction is expected to take 40 months.

Financing has constituted much of the political sparring over the deal: Project Co would take in all revenues generated by the airport, along with operational expenses such as paying staff.

According to the Opposition’s figures, the airport yields a profit just below $18 million a year, which the island would lose, while taxpayers remained on the hook for significant operational costs.

According to Mr Richards, the airport barely broke even until legislators last year approved an airport improvement fee and increase in departure tax — specifically for the project.

That dispute is heading now for a showdown in the House — with potential to be taken up by protest groups such as the People’s Campaign, which has repeatedly challenged the proposal.