$200M airport deal on table
(CNS): A deal to redevelop Owen Roberts International Airport under the coordination of the Canadian government’s procurement agency is still on the table more than a year after the premier announced the possible public-private partnership last August. According to a presentation given by Canadian Commercial Corporation along with its local partner the Paramount Group last week, it will be taking on the $200 million project to double the airport’s capacity via a concession agreement and leasing the airport for as long as 40 years. The CCC says there will be no cost to government and it will return as much as $13 million to the CIAA. However, it is still not clear if the arrangement will pass muster with the Framework for Fiscal Responsibility.
If government goes ahead with the proposed deal the corporation will be taking fees from the airport that would have gone to the government owned company. It will use that money to develop what will remain a public owned resource, which makes it subject to UK fiscal supervision.
Furthermore, it is not clear if the decision to work with the Canadian corporation and the various partners involved, including the local partner, will be considered by the FCO as meeting best international l procurement practice. In a presentation last week to local stakeholders, the various partners on the project were revealed but no tendering process has ever taken place.
Although the company has stated that it will return millions of dollars annually to the Cayman Islands Airport Authority during the 40 year concession, it will be taking landing and other taxes from those using the airport. The corporation and its partners will make their profit mostly from the retail that will form part of the redevelopment and, it said, from doubling traffic to the airport. The $200 million development will include the extension of the runway and an expansion of the terminals. The proposed deal also includes an up-front payment to the Cayman government of $30 million.
The corporation will be responsible for the project but alongside the Paramount Group, which was described as the “strategic local partner”, the lead developer will be Aecon group inc, the aviation advisor will be Mott MacDonald Limited, the lead architect will be Scott Associates, and the money will come from Scotiabank, with Heenan Blaikie LLP, as the “Co-developer and Legal Advisor”.
The presentation reveals a commitment to employ local sub-contractors and to help civil servants working at the airport to transition into the private sector. The corporation also promises to train local staff and provide employment and engage local businesses to develop the new Airport.
The corporation said it would also work with the Cayman Islands Tourism Association (CITA) and the Department of Tourism to increase air traffic to Cayman. Under the deal the Canadian government will guarantee contract performance and to pay a yearly concession fee to the CIAA. It will run and maintain the airport to the required service levels and uphold international environmental standards.
The local airport authority will still own the airport, set the performance standards, regulate and monitor the concession and receive a share of the profits. It will also retain responsibility for air traffic control, weather, fire and rescue, security and the airports emergency plan.
Paramount released a statement as well as the CCC’s presentation regarding the talks Thursday, which stated that positive feedback had been received at all meetings held by the Canadian team. Pointing to the doubling of capacity and the cash for government, Paramount said there would be important short term safety upgrades, and the generation of significant employment opportunities and dramatically improved customer service experience, all at no cost to the Cayman Islands public purse.
“Canada, through the Canadian Commercial Corporation, offers the advantage of contracting for the delivery of complex infrastructure projects on a Government-to-Government basis. Simplified acquisition, reduced risk and an enhanced bilateral relationship are key advantages of this approach. Collaborative project definition and planning are the foundation of the project development and implementation process proposed by the Canadian team,” Paramount stated in the release.
See press statement below.
Although Paramount sent the details of the Canadian Commercial Corporation presentation unsolicited to all the media, it has requested that the documents were removed from the CNS website after they were posted with the story this morning. CNS is not sure why this request, which flies in the face of transparency, has been made. However, until we have clarified our position we have removed the documents. CNS has a policy of publishing all documents it receives as we believe this is in the public interest.
Category: Local News
Well if the Canadians want to pay for it and give us a world class airport with a longer runway then hey you bet I'm for it. I see that our airport is too old and way below the standards of many other Caribbean islands, just look at Montego Bay or KIngston departure terminals. Our airport has to be built to be used as a Caribbean hub so that we can connect passengers to Europe and Latin America, have pre US & Canadian Custom & Immigration clearnace, great shopping, dining options, a small boutique hotel, conference center, spa & gym, smoking lounges, public facilties with showers and kids play areas. Hopefully we'll have more tourist coming from Europe, South America and the US west coast with a longer runway and see more charter flights from these destinations being introduced which will boost occupancy and inject revenue in to the local economy.
I've saved this article for when McKeeva tries to blame this on the PPM in the 2017 elections.
Should the RCIPS commissioner be asked to resign because he has not been able to move forward with the investigations involving the Premier? While I do not think that anyone should be above the law, it is also unfair to the Premier to have these investigations outstanding for several years without resolution.
I think that the RCIPS needs to move forward or terminate the investigations.
Ellio has got round the parental lock on the computer again.
I have a feeling that the UK is using the investigations as a 'negotiating tool' with the Premier.
I think we can all guess why they haven't moved forward, and indeed why they haven't terminated the investigations.
New airport with bigger runway = new long flights to Cayman and more tourists – if the benefit of this outweighs the revenue from operating the airport for 40 years then it is a good deal.
What are you going to do for 40 years down the line without this development and at what cost shoud you have to do it then. We are already 30 years behind our caribbean competitors in this field.
Attract more visitors? They can't even greet visitors with a welcome smile or other means of showing hospitality at the existing airport…
CI Department of Tourism spends so much money promoting CI as a tourist's designation and it never crossed their minds that visitors should feel welcomed as soon as they step out of the plane. When my son visited me (from US), I asked him what was his first impression? "Nobody gives a damn about me visiting this island"- he replied. Nobody thanks you when you depart and asks to come back.
He compares it to Hawaii. Their Welcome message starts in a plane and continues upon landing at the airport, hotels etc. In my 4 years here I have yet to see a Welcome sign anywhere.
So true. The only "welcome" one gets is a surly, sour face of some immigration officer who can barely grunt out a "hello" in response to mycheery good morning or afternoon. They won't even look you in the eye when speaking with you, and keep their head down like you are not even there. They are such sourpusses, there. Either they are very demotivated or they have received no proper training or they don't feel it is important to make visitors feel welcome or they feel we are wasting their time and they would rather be doing something else. Whenever I return to my homeland to spend vacation time, the officers back home always tell me "Welcome back home, Ma'am, and enjoy your vacation" Whenever I leave to come back here to work, they always tell me "Come back home soon." And if you think that's good, the tourists get even better treatment than me. The officers here are sorely in need of an overhaul in their attitudes and realize that if it weren't for the travelers, they would not be collecting a paycheck at the end of the month.
To be fair overly gushing insincerity regurgitated parrot style annoys me more, I guess its horses for courses. As for eye contact, have you ever considered that it's considered showing a lack of respect in the Carribean?
I hear you and understand your viewpoint completely, but I personally would much rather have the gushing insincerity, because it tells me the officers at the very least, realize the importance of appearing to be "welcoming" to the traveller. It is all about perception and trying to make the traveller feel welcome. I am from the Caribbean, and have some 45 years under my belt, and this is the first time I have ever heard that looking someone in the eye as you speak with them, is considered showing a lack of respect in the Caribbean. Quite the opposite, in fact, it is considered disinterested and disrespectful. In school and at home, teachers and parents regularly drum it into the brains of children to look at someone when they are being addressed and make eye contact. You are taught to say hello on entering a building, lobby, or any place where others are gathered, or even when passing someone in the street. It is in North America I find people keep their heads down and do not greet others or even look you in the eye. I went into a local car wash the other day, and on taking a seat in the waiting area, I said hello (as I was taught to do from I was a child) to the 2 people already seated who were also waiting for their cars. There was a lady from Cayman and a gentleman from North America (I picked up his accent when he later took a call on his cell phone). Guess which of the 2 bothered to return my greeting? You guessed it, the Caymanian lady did, while the North American completely ignored my hello and did not even bother to look up from his newspaper. North Americans frequently say how friendly the people from the Caribbean islands are. So this is why it is so suprising when the officers at the airports act completely opposite.
I would like them when they are doing training of the immigration officers to take the word "NEXT" out of their vocabulary…Wouldn't it be far nicer if they .."May I help you?" rather than screaming at the top of their lungs "NEXT" and then when you get up to them they do even say hello they just grab your passport and paperwork, stamp it and not a word of "welcome and hope you will enjoy your stay"
The immigration service is terrible…I'll keep Customs for another time.
I take it you have never flown into the mega tourist destinations of NYC or MIA. I don’t think you can find less friendly customs and immigration staff anywhere else, yes I do agree the staff here need some attitude realignment as well.
On the contrary, I have travelled often to New York, Miami, and Toronto. Each time, I approached the officers with the same greeting as I do when I approach the officers here in Cayman, and each time they never fail to respond with a friendly hello and a smile and even tell me to enjoy my trip. The service here truly sucks and is the worst I have seen in all my travels.
As a seasoned traveller I can certify that that is truly rubbish. Improvements are needed here, yes, but it is very far from being among the worst.
It is like the last time I had to take taxi on arrival, the driver I was given rolled their eyes and smirked because they only had to take me into George Town! I got another unpleasant look when no tip was offered! This driver did not know I was not a visitor.
This is fine so long as we negotiate protections for whatever parts of the airport we currently value. For example, the ability to greet arriving passengers, the local stores in the departure lounge, the free carts and so on. Once we've removed temptation from their way, then there can only be benefits for us. The way I see it is, the Government isn't very good at running the airport, and certainly can't afford to improve it. Let someone else do it, especially if they want to pay us.
For those of you raising the spectre of other public-private projects, keep in mind this is Canada we are talking about, the G8 member with the Charter of Rights and Freedoms, the balanced budget and stable economy. Canada has merely observed a large proportion of its citizens visiting Cayman, and wants to use its hard-earned good finances to invest in strategic partners and enhance its bilateral relationships. Canada is not an 'evil' country'.
The press release says this also involves CHEC…but how or better yet- WHY? Another side deal for UDP loyalists with no due process…Vibe FM has new government propaganda talk show contract (more of Macs brilliant negotiations, prob a talk show for an airport deal)
What happened to the *cough cough* oil refinery? Shhhhhh don't start that up again please I couldn't take it
UDP sucks All those who vote for them suck Worst government ever Disgrace, scandal (Premier investigations still ongoing zzzzz), a complete disaster in office, a disaster for Cayman and its future generations
Vote accordingly people! Vote SMART, like you mean it.
The fact that Paramount is the “local partner” should say a lot about this “deal”. What do they haveto do with airport design and construction? Hmmmmm…..enquiring minds want to know.
Will never fly. Rush Rush – Oink Oink – only seven months of Pork left………………
If voters knew enough anout their own political process they might have petitioned this crew out MONTHS AGO.
The airport needs expansion……. Government cant do it, so we have to allow this to happen.
The airport is suppose to of been updated by now, new facilities and everything. But Government keeps on taking the money required to use it to prop up some other part of the failing Government.
If we are to move forward, privitization (under lease agreements) is a good way. It still allows for money to come into the government, and allows some company to make the nessesary moves to upgrade the facilities and also do the marketing for us to bring in more people/airlines to the island and fill the hotels and make sure the economy can keep moving.
These companies that come in to privatise places dont throw away the local businesses either, they depend on their input to allow greater income also.
Its time to let someone who maybe knows how to manage anairport have a chance at doing it….. or let the current airport management have a chance to use their funds to do their job rather than keep bleeding off their money they need to upgrade and update.
Despite the contract, I can not understand why we would want to sink so much money into the existing airport when technically it is not ideally located. Let’s see we have several petrol station in the close vicinity, a hospital, a retirement home, commercial buildings and so on…..what would happen if there was a plane crash? Would we have to vacate the sick, the old, close businesses and so on? Where would we house the sick and the old? Albeit an accident has never really happen per say but think of the northwesters and the big 747 taking off over the pines and the hospital…..certainly this will not be an enjoyable experience for these poor people. My solution…….move the airport completely out of the city. It would be far less expensive for both sides of the coin. Our people in power need to stop being so short sighted and plan ahead for the future and for the next generation. Is there a 10 year or 20 year infrastructure plan?
Has no-one but me noticed the "OPERATING PROTOCOL" of the Bush Government? If the people of this Island have been reading, listening, and remembering, all the past deals that were supposed to boost our sagging economy, create jobs etc. etc. they would most certainly see that every thing this Government does, [at the behest of their GREAT LEADER] is to distract us from his previous screw-ups!
Well here they are in a nut-shell! TURTLE FARM, COHEN FINANCING, ENTERPRISE CITY, CHEC DOCK and others should be no surprise.
He knows that none of these great pronouncements will ever make us a penny, but main-while unaccounted for millions are siphoned off from our coffers.
But who knows! Maybe THEY ARE SAVING IT FOR US.
Will the new development have hockey facilities in the waiting lounge?
Never mind the hockey, are we going to get more Canadian waitresses?
I would sure hope so, they are so plesant to talk to, and sweet smiles.
Paramount Group knows sweet XXXX-all about airport development…they bragging bout running a farm WTF
So, we are selling ourselves out left right and center:
EE/Medical Tourism (supposed third economic pillar) sold to Shetty and the Indians for 100 years
Port to Chinese for 50+ years
Airport to Canadians for 40+ years
SMB to Dart for life
Dart is also collecting accomodation tax on behalf of government
So all those flapping their mouths on CNS go thank you McKeeva and UDP who you voted for
If we have to give away FORTY years of potential revenue and complete ownership of our airport it simply means we CANNOT afford it!!! Pathetic.
Is the new airport going to be carpeted?.
It is obvious that it will. The Government obviously has a lot to hide.
"Shag" would be the best choice – reflecting with this lot has done to us since being elected.
Of course it will. Carpet will be Paramount to it's success.
Someone needs to tell the Canadians to re-think where they are buying a future income stream. 40 years' worth of future failure isn't going to justify $200 million today.
I just wonder if they have their numbers right to make a correct business decision. There were 302,000 air arrivals in 2002 and 303,000 in 2008 which rose to 309,000 in 2011 and there are fewer hotel rooms. I am in favour of progress but the Bush got it seriously wrong on the Turtle Far/Disney project. So tourists increased about 2% in about ten years
Moreover the TCI which built alonger runway to attract European visitors cannot persuade any airline to fly in from Europe. The Civil Aviation folks need talk to the airlines in Europe before committing funds and handing over a cash cow to friends and neighbours.
Canadians re-think where they are buying a future income stream??? Caymanians had better reconsider because they will be buying into a facade with fools gold as the garnish. Do we really believe this hog wash? to believe the Canadians will give us any a such deal just goes to show that we would believe anything including that there is a spinning wheel that can turn straw into gold. My fellow Caymanians just look at the Matrix deal and so many others and tell me how smart a deal the Canadians will give us and what their return will be this is one deal we had better run far away from while we can.
This is assinine to me our port will be controlled by the Chinese for God knows how long and now our airport by the Canadians for 40 years?!! I dont see how we will be able to enter into such an agreement under the current FFR. We are going to see quite a few of these non-sensical deals the closer to elections because UDP are desperate to prove that they accomplished something/anything in the last 4 years. This is a lose-lose deal!!!! The Canadians are laughing all the way to the bank at our dumb a@*** if we take this "deal".
To the contrary, taking away control of the port and the airport from the UDP, makes a lot of sense!.
And the reason is because even with $500million a year coming in there is not enough left to pay your bills much less build airports or ports for YOURSELVES. Because YOUR money is always dissapearing down the CIG money hole. The ONLY way you can have a port or larger airport is to let someone build it for themselves (because they haven't lost all their money) and pay to use it. It is assinine and the Canadians are not the only ones laughing at your dumb a@***'s. Your leadership is.
Very soon there will be no more money coming in to waste down the CIG money hole or to assist economic refugees. It will be assinine when there will be no more money for the masses to send out of the country to purchase or save what they could never afford to do in their country of origin. In my opinion a port and larger airport is not the answer to our problems and can wait until we can afford to buid them ourselves. Where were the many offers to build our port and expand our airport back in the 70s and 80s? Caymanians had better realise that this country is the best in the world and fight to keep it that way. We had better stop giving away what we have and letting every Tom, Dick, Harry, Mary and Jane come in here to tell us what to do and how to live because believe me we are not able to go to any country outside of this our own with even that thought.
This leasing of our airport is hog wash this will never happen under the FRF. First of all the UK Government is the ultimate power in these islands. Absolutely no foreign entity will be allowed to control our port of entry and exit so stop the worrying about this because I can assure every concerned Caymanian that this will never happen as long as we are governed by the UK. These are just grandious ideas and nothing more.
who owns Heathrow Airport, UK port of entry? Answer: British Airports Authority owned by a consortium of Spanish, Canadian et al companies! So I don't see UK being too bothered about it!
Selling what we have left is NOT the solution!!!
Changing our Govt is the solution!!
Managing our country as a business is the solution!!
Finding sensible financial educated and well experienced is the solution!!
Let me remind you that we these donkeys sell what we have left of our island, it is very
highly possible we will never own it again, but of we ever do wish to, we will have to
pay a significantly higher price than we sold it for. In addition, weCaymanians will no
longer control the ownership nor the continued revenue it yields annually.
However, I can see clearly now that our lands have been possessed by one multi-
billionaire, our most prestine beaches are owned by the same person; our main
WB highway / roads are owned by the same person; the majority of our busnesses are
owned by the same person; therefore it is presumptous to say, that our Airport, our
Airline and our waterways will soon be owned by this same person as well.
When this has all been acccomplished, the Cayman Islands will no longer be and only
then will you all find out that you have sold your soul to the devil. I have lots of tissues in
stock, come and get your supply cause you'll need them to soak up your tears of regret.
I'll also have your favorite music playing, like "Too Late She is Gone" and "Before the Next
Teardrop Falls" etc etc.
13;34
No we do not need to cahage our govrnment. we need to lobby them and get the policies changed. otherwise putting people like you in will only carry on the same protocol.
Does the Caymanian people have the ability to change their government into something that works? That is the real question. None of the old works. Is there any new? If its a cultural thing then changing old for new won't help. All levels of CIG are full of crap. Changing the top level only won't help much. Unless new leadership is ready to take on the task of forcing out all the many, many, nonperforming workers that make up the civil service money vacuum and put a stop to the Government sponsered (public purse) above and beyond benefit package (free gas, healthcare for all, pensions, double dipping, giving contracts to family or worse, themselves, etc., etc., etc. Whew! Thats a lot of work. Maybe better to just let it fail and hope the UK will step in.
Excellent news!
lovely news!
Sounds great! Unfortunately it would take some work on Caymans government part and thats not gonna happen unless Caymanians can get some one else to do the work for them. Too bad. Maybe the next generation of Caymans Government can do something. Is there a next generation? Maybe the UK?
Get 'er done.
This is a very dangrous deal, XXXX, also most of these airport deals the duty free retail consessions are presold to one or two huge retailiers normaly, look at companies like Nuance, DFS, DFA and other companies like those, their will not be any local retailers in that airport in the future.
If we can't afford it, don't build it, I personaly feel it is very stupid to give up a cash cow like a International airport, I'd suggest we sell all the airport land and close it if we need a Larger airport, just extending the runaway puts us in a siuation, there isn't enough land for extra taxi ways and where will the runaway go inland or into the northsound, instead of building a dump in Bodden town, build a airport in the middle section of the island, burn the dump down via inceneration, sell the excess heat to CUC via a Electric turbine hooked up to the incenerator and reclaim a profit for the island, take that Dump land and lease or resell it to Dart at it's true price as once it is incenerated we won't need all that space, we are throwing away or wealth for 30 million plus maybe 13 extra million is that 13 million a year or over 40 years, what the heck is thirty million, when you will lose 40 years of revenue, oh don't forget Judus sold Jesus to 30 peices of silver as well, sound like it is time for Cayman to be put on the cross somemore.
The airport managment has already taken the lazy way out and sold us out already, just by sititng down negoating with these people, we need to put people in these entities that are willing to do the work they get paid for and stop outsourceing the work they should be doing.
NHB
Given that this amounts to a major government contract, was there ever a public 'request for proposals' or solicitation for 'expressions of interest' that I missed somewhere in the local press by either government or the developer? I suppose the arrangement with the developer was simply 'negotiated' so there would be no requirement to locally advertise the work they subcontract.
This FOI must be getting really annoying for the current government. One can only wonder at how many informal, unsolicited proposals were reviewed by CIAA prior to this and what criteria were used for a final decision to sign an MOU with this group! Is there much of a difference in [lack of] process between this and the port fiasco? It makes little diference whether they are Canadian or Chinese, the 'process' seems flawed and as a result may all end in broken promises. If that is the case we might end up without a new airport nearly 10 years after the plan for ORIA redevelopment was first initiated.
There is no way the FCO will approve this as it has not gone out to tender. In looking at various 2007 documents which emanated from the FCO it seems that the TCI Government looked at the competitive bidding process before their crooked Premier started negotiations with no authority with a well known Lord who is now subject to intense investigation on several fronts. We must heed the lessons learnt in the TCI and from other currupt Caribbean Islands.
Firstly there was the Cohen deal, then the Port deal which continues and now the Airport. Let us hope this too is not swept under the carpet.[ No joke intended ].
Ezzard and Alden speak up.
Come on Chris give Ezzard a break you know he has already spoken out against this deal on Rooster last Tuesday, so call out your friend Alden if you wish, but give credit to Ezzard when due, even though you don't like or support him
My dear boy for your edification not everyone has the time nor inclination to listen to Rooster.
OK, so you expand the airport and build a runway capable of handling direct flights from the UK and Europe but where are the passengers going to stay?
You think the cruise market is fickle and the cruise dock is a dubious investment? Try the airlines because they will shut a route down overnight if it isn't paying.
I can see ORA turning into the kind of ghost town that the airport in Guam is (and if you've had to go through there you know exactly what I mean) with all the facilities of a modern international terminal but no passengers.
The thing missing in all this is the hotel building program. Without that you don't have Jack!
No wonder Dart negotiated his sweetheart deal re: stay over tourism tax dollars for any hotels he builds or buys over the next umpteen years – all beginning to fall in place now and make sense – politicians helping their friends at our expense.
Get er done!
This is just another big 'soon come' deal…
The hot air spewed by Mac has made Cayman a major contributor to global warming..
By the way. Where is Rolly?
Rolly? Rolly? Dont be so quiet. I can drive if you buy the drinks…
rolly is probably at the office…where he puts in some long hours…..
Any airport improvement must include a US Customs/Immigration pre-clearance facility, this is key to Cayman's future business and tourist product.
Good idea but how will be fund it?
We need to be careful in escalating fees that could be charged to recoup the cost of construction. Could make travel for all more expensive. Never the less we need a new airport
Is this the same gowerment that crucified the PPM Government for providing us with roads and a Government Administration Building and state of the art educational facilities for our children, and who are negotiating with CHEC for a three hundred million port "deal", and who cannot produce a budget, and who cannot show us an audited surplus and who continue to destroy our economy and investor confidence by crying out to the entire world "we are broke" and demonstrating just how broke we are by jacking our utility bills and work permit fees and the cost of living and doing business in Cayman and just about everything else that they can possibly jack through the stratosphere while causing a daily increase in hardship and crime and unemployment in our beloved country?
who are the "local" partners?
all good…. but we've been listening to these 'soon come' stories for the past 4 years……what has got done?
Nothing, the only people who thought things would happen are those that voted the inept flying circus into power.
Is the Cayman partners the same that developed and built Randyke Gardens ?
Seems so yea.
It would be interesting to know who the Caymanian partners are. And what will happen to the existing Caymannian-owned concessionaires and duty free shops.
The same will happen to those shops as is going to happen to the ones in GT if the Chinese dock is built, they will disappear.
Same one that PPM leasders approved construction of.
In the Cayman that I live on construction is approved by the Planning Department.
Makes me wonder how much would have been charged in 'real estate services' under the other gowerment.