Premier Burt says airport equity sale is a loss for Bermudians
Premier David Burt has expressed his disappointment at the news that Aecon, the principal concessioner at the L.F Wade International Airport (Bermuda Skyport), is selling a 49.9 per cent stake in the facilities operations to Canadian firm Connor, Clark & Lunn Infrastructure (CC&L Infrastructure).
The deal will see Aecon retain the management contract for the airport and remain the controlling shareholder of Skyport, owning a 50.1 per cent interest.
In a statement, Burt said the news disappoints the people of Bermuda as they are now forced to “sit idly by while foreign companies sell our airport for their profit”.
He lamented that the government was not informed of the sale, first reported by media outside Bermuda. The premier said the US$128.5 million sale agreement is another example of how bad the airport development contract, agreed to by the One Bermuda Alliance (OBA) government, is for the people of Bermuda.
“Many Bermudians, including the Cabinet, learned about it from the international press. Sadly, due to the bad deal passed by the former Government that was opposed by most of the voters in Bermuda, the elected Government sits on the sidelines. At the same time, foreign companies profit at the expense of Bermuda's taxpayers,” he said.
“This is why Bermudians from all walks of life protested this privatisation and were tragically subjected to pepper spray as the OBA was determined to approve this terrible deal. And today, while Bermuda's taxpayers are still paying Skyport's energy bills, still paying minimum revenue guarantees to Skyport, and the Government had to spend $4 million of extra funds for firefighters to keep Bermuda's airport open with no assistance from Skyport, Aecon is laughing all the way to the bank.”
He continued: “Sadly, the only thing the taxpayers will get from today's sale is a bill on March 31st from Skyport demanding their next minimum revenue guarantee payment."
Burt noted that Aecon invested only $65 million of equity into the no-bid privatisation of Bermuda's airport; still , now it is worth $257 million, while taxpayers were obligated to give Skyport $50 million in revenue guarantees.
Aecon has 24 years remaining on its contract with Bermuda.
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