In November 2014, Bob Richards, the Deputy Premier and Minister of Finance, announced that the Bermuda Government reached an agreement with Canadian Commercial Corporation for the construction of a new airport terminal building, which would cost in the “range of $200 million”. Many Bermudians have expressed their disapproval of such a move. Let’s look at the facts as to why:

Without tender

“There is no free lunch” — Bob Richards

Our minister is absolutely correct about this, and there are many Bermudians who are struggling to buy that lunch that isn’t free. Yet this deal was agreed without it being tendered to local contractors, who in these economic times could use an economic stimulus of this kind.

“Fuzzy” talks

Many Bermudians were disgusted at what they feel were “under-the-table dealings”, “lack of transparency” and “lies”. Some call it lies, some use other words, but in the words of Shakespeare, “A rose by any other name would smell just as sweet”.

In a string of e-mails that was recently released to the public, it is clear for all to see where Deputy Premier and finance minister himself said very bluntly that he “fuzzied up the no new debt part”.

When reviewing the e-mails, it is also clear for all to see where Steve Nackan, of Aecon, e-mails CCC to say that Aecon can “generate a list of questions” using the “same stuff we generated for Cayman” and suggests “maybe we get some of those questions planted”.

The same gentlemen, Mr Nackan can be seen in December 2014 saying that a “focused communications strategy is in order to counter the opposition ...” Martin Zablocki, the CCC president and chief executive officer, confirmed that Aecon “alerted” them to the opportunity, saying that the CCC “through discussions with Aecon was alerted to the exciting opportunity to redevelop” the airport. This is contrary to what the Deputy Premier told the country in Parliament — that “CCC chose Aecon, not the Bermuda Government”.

Ignoring the advice you paid for?

On May 20, the Deputy Premier and Minister of Finance said to the country that his ministry in conjunction with other entities “engaged the services of Deloitte, following a competitive tendering process, to conduct an independent appraisal of the method of procurement for the redevelopment of Bermuda’s airport using the CCC”.

In its report, Deloitte has usefully provided a section entitled “Gaps identified”. Those include:

• Financial model and study need to be updated, and expanded to study the concession structure and all the Government’s costs related to the airport

• Further evidence of stakeholder consultation and agreement would be useful

• The main element missing from the affordability of the project is that the perspective it has been developed under leaves several cost components of the Government amiss. It is therefore not robust enough to make an investment decision and requires further development

• Specifics of the savings and efficiencies need to be analysed and supported by evidence

• While there has been a great deal of work on the affordability of the project, it has been developed by CCC as opposed to the Government

• CCC’s affordability components fail to encapsulate all costs to be borne by the Government during and after the project

Deloitte added that the Government could “assess whether the Government can afford their obligations under the proposed concession arrangement”.

Is the airport deal as proposed by the Government at present in the best interest of Bermuda and Bermudians?

Some say so, some say absolutely not; having regards to the facts, what say ye?