The Canadian developer of the new $249 million airport has been granted a string of perks, the official contract has revealed.

Canadian Crown Corporation and its subcontractor construction firm Aecon — collectively referred to as Project Co — will be exempt from the employer’s share of payroll tax and customs duties on capital items like construction materials.

And Government will also pay an equivalent sum “on an annual basis and for the term of the project agreement an amount equal to the energy consumption for the airport operations...” less airport tenants’ bills.

The operating company will also get a minimum revenue guarantee — which means if annual income is not up to projections over the 30-year contract, Government will make up the difference.

The terms of the agreement, a prelude to the financial close of the deal was tabled in Parliament last month.

The financial close, including figures, is expected to be concluded by the end of November this year.

The agreement also specifies that a transition plan should be in place for the transfer of airport employees, to Aecon, a new airport quango or Bermuda.

It added that, subject to conditions, staff should be transferred “on terms and conditions which, taken as a whole, are no less favourable than such employees’ existing employment terms and conditions”.

The agreement said: “Subject to applicable laws (including labour relations and collective bargaining laws) and the terms and conditions of the project agreement, Project Co shall have the right to structure the company, Project Co senior management, its employees, its organisation, reporting structures and business operations in a way which it considers appropriate.”

The agreement added that there could be existing terms and conditions, like continued participation in the regulated government pension scheme, which will not be continued by Project Co, but replaced by a private, defined-contribution pension plan, and “other benefits that are not enjoyed by comparable public sector employees in other common law jurisdictions that may be subject to modification or transfer to private sector pension and/or benefit schemes.”

The agreement also includes a clause setting up a development of Bermudian labour plan, which obliges the contractor to “identify, train, develop and preferentially employ qualified Bermudian labour”.

The agreement said: “Project Co shall establish mentoring and work shadowing programmes for a select number of unskilled Bermudians to allow these individuals to observe and learn certain construction trade skills in Bermuda and to establish job fairs and undertake employment recruiting events and requests for proposals to identify persons for the purpose of recruiting and retaining Bermudian labour and Bermudian employees, independent contractors and service providers.”

The agreement also stipulated: “Aecon Construction and its affiliates, together with Project Co, shall be exempt from all land, land transfer, lease and other real estate taxes, levies and stamp duty in Bermuda that may be associated with the airport, airport operations, construction, lease and other real estate taxes, levies and stamp duty in Bermuda that may be associated with the airport, airport operations, construction, leased lands or otherwise with the project at any time during the term of this airport development agreement and the terms of the core project document.”

Bob Richards, the Finance Minister, said last night: “Not the least of benefits is the ability to work with the triple-A rated Canadian government and obtaining guarantees against cost overruns, shoddy workmanship and time delays.

“These have been the biggest issues plaguing Bermuda’s history of infrastructure development — and it has cost the Bermudian taxpayer hundreds of millions of dollars in unnecessary expenditure.”

And Mr Richards added the public private partnership deal for the airport “does not impact the treasury and add millions of dollars more to the Government’s debt”.

The statement added: “The project calls for the employment of hundreds of Bermudians initially and an increase in the number of long-term jobs connected to the facility going forward.

“It also calls for an injection of hundreds of millions of dollars of foreign capital into the Bermuda economy.”