House: $5.7 million payment to Skyport


Bermuda’s deal for the airport development contained “unwelcome facts” on the revenue from the facility, Neville Tyrrell, the transport minister, said this morning.

He told the House of Assembly that Skyport, the operators of the airport, had a deal for minimum revenue which was triggered earlier this year because of the lack of travel to the island.

Mr Tyrrell said the One Bermuda Alliance, the previous administration that agreed to the project, had assured the House that the guarantee would never be triggered.

The Bermuda Airport Authority must now transfer $5,770,995 to the guaranteed revenue reserve account managed by Skyport in New York.

The transfer was made this week.

“Make no mistake: this hurts,” Mr Tyrrell said, citing the economic downturn from the Covid-19 pandemic.

He said he anticipated further payments required at quarterly intervals later this year, and added that the project agreement could not be “easily terminated”.

Mr Tyrrell added: “It would be irresponsible to pursue it at this time.”

There is no ability to change any of the provisions in the agreement, MPs heard.

To read Neville Tyrrell’s statement in full, click on the PDF under “Related Media”

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Published Jul 24, 2020 at 11:41 am (Updated Jul 24, 2020 at 11:41 am)

House: $5.7 million payment to Skyport

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