Airport agreement under review – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password

Airport agreement under review

The controversial airport redevelopment deal is under review by an international firm of consultants, Minister of Transport Walter Roban said yesterday.

The review was ordered by the Government and will be carried out by the Bermuda Airport Authority and US-based global consultants LeighFisher.

Mr Roban told The Royal Gazette: “Our goal is to finish by December.”

The public-private partnership agreement, signed by the former One Bermuda Alliance administration with Canadian Commercial Corporation and its contractor, Aecon, was attacked by the Progressive Labour Party while in opposition.

Michael Dunkley, the former premier, said last night the OBA plan was “the best deal for Bermuda” and accused the PLP of resorting to “Trump-like” misinformation.

Mr Roban said the assessment of the agreement started just after the PLP came to power in July, with LeighFisher contracted four to six weeks ago.

He could not provide a figure for the potential cost of scrapping the deal, saying that would be “hypothetical” until the review was finished.

Mr Roban added: “As opposition we expressed our dissatisfaction with this arrangement, and as Government our dissatisfaction remains.”

The minister said that Bermudians wanted a new airport, but that the Aecon deal was one that “we were forced to accept, as the project was not opened to other bidders”.

He added: “When a significant amount of people expressed their disapproval, they were ignored.”

Mr Roban said: “The conduct and contempt shown by the former finance minister to Parliament, refusing to answer questions, and misleading by omission, did nothing to ease the concern and unpopularity shown by the Bermudian people for this agreement.”

He described LeighFisher as “a global management consulting firm offering infrastructure advisory and consulting services to aviation, infrastructure and government markets”.

The review is being conducted by the Bermuda Airport Authority, which contracted LeighFisher under its own terms of procurement.

Lester Nelson, chief executive officer of the BAA, said the company had given the government strategic advice in the past, but that it had played “a small role” in the OBA's plans for redevelopment of the airport.

Mr Nelson was unable to provide the cost of LeighFisher's services and said the firm was “known to us from the former Department of Airport Operations”.

He added that LeighFisher had been hired on a sole-source contract — allowed under the authority's financial instructions.

Mr Roban said the Government was “determined to chart a different path” to investigate if the country could get a better deal.

He added: “We believe the country cannot afford what the former government signed us up for.”

Mr Dunkley dismissed yesterdays' announcement as “not a review, but the hiring of a consultant”.

The former premier said Mr Roban had failed to reveal the contract terms, such as “was it a sole-source contract, what is the fee involved and the length of time for the consultancy work to take place?”

Mr Dunkley said due diligence had been carried out by the OBA from the start, which included engagement with the UK Government.

He added that the Blue Ribbon Panel set up to review the deal had declared it “not perfect, but it is a good deal” and said that it had been approved by organisations such as the Bermuda Tourism Authority, the Bermuda Hotel Association, the Chamber of Commerce,

and the Association of Bermuda Insurers and Reinsurers.

Mr Dunkley called LeighFisher a reputable firm and said he looked forward to the results of the review.

He said: “Any government has the right and ability to review a contract or policy.

“However, in this matter the PLP opposed the project from the beginning and often spread misinformation and employed Trump-like tactics to divide people and confuse the issue.

“It was not about what is best for Bermuda but about how to get elected.”

On occasion The Royal Gazette may decide to not allow comments on a story that we deem might inflame sensitivities. As we are legally liable for any libellous or defamatory comments made on our website, this move is for our protection as well as that of our readers.

To read both statements in full, click the PDF under “Related Media”

Walter Roban, the Minister of Transport and Regulatory Affairs. (Photograph by Akil Simmons)

You must be registered or signed-in to post comment or to vote.

Published October 24, 2017 at 9:00 am (Updated October 23, 2017 at 11:33 pm)

Airport agreement under review

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon