Airports Authority Gives Insight to the Desire for Public Private Partnership (PPP)

Dana Malcolm 

Staff Writer

#TurksandCaicos, August 11, 2023 – ‘The risk is all on the private company,’ that was the message  from the Turks and Caicos Airports Association TCIAA on Wednesday night as they defended the decision to enter in a Public-Private-Partnership to redevelop the Providenciales/Howard Hamilton  International Airport and provided more concrete information on what they hope the contract will look like.

In response to a Magnetic Media question, we learned, “There are no payments to be made to the private partner.” Selvyn Hawkins, Executive Chairman of the TCIAA, told Magnetic Media.  The answer was aimed at reassuring taxpayers that they won’t be stuck with another PPP deal where millions of dollars are handed over to a private company each month to run a local entity, gobbling up a chunk of the Budget.

In this arrangement, though missing a private partner so far, is leaning toward a revenue share deal.

“The private partner will design, finance, build, manage and maintain the airport.  The costs are their own. In return they will have to pay TCIAA a share of the revenue made during the period of the concession.”

The government will retain some of the cash but the finer details of how the split will be decided and how exactly locals will be able to buy-in have not yet been decided.  What seems concrete though is the decision to proceed via PPP.

The Government has not indicated they are considering any other option and are right now holding town meetings on all islands to address airport development on the given island, but also discussing the country’s leading airport gateway.

It is expected that the PPP will be signed in the first or second quarter of 2024.  The Chairman and CEO (Godfrey Smith) of the Airports Authority both communicated, during their presentations at two Wednesday August 9 events that risk was low in the PPP they have envisioned.

“All significant risks of building and then operating and maintaining the airport are transferred to the private partner for the period of the concession.  Thus there is no situation where we will be paying anyone.  The airport’s revenue is self-generated from its operations.”

Despite this some residents have reservations about why the government is pushing a PPP so doggedly.

TCIG says ultimately it’s aiming for a streamlined process with a professional contractor who will get the job done on time and efficiently and then be able to manage with the requisite luxury and profitability to accommodate over two million passengers per year, well into the future.