Investors now have info on requirements for Providenciales Airport PPP

Dana Malcolm 

Staff Writer 

#TurksandCaicos, August 14, 2023 – The Turks and Caicos Government has officially begun to advertise the Howard Hamilton International Airport redevelopment project to potential investors with the release of an information memorandum on August 9th.

It lays out a thirty-year, $360 million plan, which mandates that the redevelopment must be done within the first 5 years of the concession. The $47 million yearly revenue of the airport will be shared between the government and the company over 30 years.

As the private partner takes on most of the risk by building and managing the airport they will control the incoming finances, explains TCIAA executives.

“The Private Partner will collect the aeronautical and non-aeronautical revenues (Gross Revenues).  The TCIAA will receive an annual concession fee % of the Gross Revenues),” the document outlined.

The document is intended to act as a guide so private companies with the money to invest can see a basic layout of the size, scope, and objectives of the project and simultaneously show the government how many investors are truly interested in taking on the mammoth task.  It’s the first time the government is actively seeking investors for the redevelopment, having received several unsolicited proposals prior.

“Today we begin a sprint to what we hope will be a positive transparent outcome for determining whether the Public-Private Partnership is the means to redevelop the airport,” said Godfrey Smith, CEO of the TCIAA during the launch of the information memorandum. “It sets out a roadmap for potential bidders today the TCIG and TCIAA are announcing the intent of an exercise to find a workable partner.”

Selvyn Hawkins, Executive Chairman of the TCIAA Board explained that there were some non-negotiables of the project that the private partner would have to adhere to, including:

• Maintain the role of the TCI as a preferred luxury destination
• Implement required actions regarding transportation goals (building the new terminal)
• Fix current capacity issues
• Introduce intentional expertise

It was launched in the presence of Washington Misick, TCI Premier; Arlington Musgrove, Minister of Immigration and Border Services and other dignitaries.

The Turks and Caicos Airports Authority ( TCIAA) says the document will help decide the final project structure. By August 15, companies would have been able to read through the document and apply for pre-qualification which allows companies that meet certain qualifications to submit queries and requests for clarification. Prequalified companies will be announced in October after which will come an invitation to tender.

The contract is to be wrapped up by March 2024.