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House: Aecon’s one-third stake in airport

Parliamentary questions: Bob Richards, the Minister of Finance (File photograph by Akil Simmons)

Financial details on Bermuda’s proposed airport redevelopment show that Aecon Concessions, the developer, must commit to having a stake of more than one-third in the project.

Bob Richards, the Minister of Finance, told the House of Assembly that the Canadian-based corporation would contribute a 35 per cent of the minimum required equity for the project.

Mr Richards provided the figure in response to parliamentary questions from David Burt, the Acting Leader of the Opposition.

That commitment had been left blank on section 6.3(cc) the draft Airport Development Agreement, available online through the parliamentary website.

Mr Richards also told MPs that the profit target expected for the new terminal at LF Wade International Airport was estimated to be 15 to 16 per cent.

This figure, which the minister described as the project’s target internal rate of return, will be in line with “similar infrastructure and airport deals with similar risks”.