Public Private Partnership
What it means?
A Public Private Partnership, commonly referred to as a P3, is a long-term performance-based agreement to develop public infrastructure, usually between a government entity and the private sector. In P3 agreements, the private sector party typically assumes design, construction and maintenance risks and ensures the effective performance of the infrastructure asset from the design and construction phase to the long-term operational phase. Remuneration is typically linked to performance as set out in the Project Agreement.
What is the Project Agreement?
The Project Agreement is the legal contract between the public sector party and the private sector party. The term of the LF Wade International Airport Project Agreement is 30 years from the date that it was signed - 15 March 2017 to 15 March 2047.
Who are the contracting parties?
The Bermuda Airport Authority is the public sector party to the Project Agreement. The Authority is a quango representing the interests of the Government of Bermuda and is the owner of the LF Wade International Airport. Bermuda Skyport Corporation Limited (Skyport) is the private sector party to the Project Agreement.
What is the role of Skyport?
Skyport, a wholly owned subsidiary of Aecon Concessions, achieved Substantial Completion of the new airport terminal building in September 2020, which was officially opened in December 2020. Skyport is responsible for the day-to-day operations of the new terminal building and maintenance of both the new and former airport terminal facilities.
What is the role of the Bermuda Airport Authority?
The Authority provided oversight of Skyport’s performance in the design and construction of the new airport terminal building, and Skyport’s operation of the former airport terminal facility during the 40-month construction period. The Authority retains oversight of Skyport’s operations and maintenance of the airport facilities for the duration of the Project Agreement.
How does the Bermuda Airport Authority provide oversight on behalf of the Government of Bermuda?
The Authority is comprised of a team of professionals with technical, financial and airport management expertise, including internal and external resources who are extensively experienced in P3 contract management and the aviation sector. The Authority carefully manages the Project Agreement to ensure quality assurance and compliance with specifications, design and construction protocols, and will hold Skyport accountable for meeting its contractual obligations.