A leading official of the Latin America and Caribbean Air Transport Association (ALTA) said yesterday "transparency is key" if the government's plans for public-private partnerships (PPPs) in airport development are to succeed.
ALTA Executive Director Eduardo Iglesias told Guardian Business that his experience with PPPs throughout Latin America and the Caribbean have made him cautious about contracts between governments and private sector entities.
"Transparency is key, especially for the government. When you are proposing [PPPs] as a way to bring in investment, you should do it in a transparent way. In the end, it's more efficient," said Iglesias.
PPPs are often seen as cost-effective and efficient solutions to local infrastructure concerns. The partnerships typically involve investments from a private sector entity to develop a public project, such as roads or airports.
Minister of Transport and Aviation Glenys Hanna-Martin announced during last month's Exuma Business Outlook that the critical overhaul of the country's airport network would cost an estimated $185 million.
Although the breakdown of this figure is unclear, Minister of State for Investments Khaalis Rolle has previously asserted that the government was seeking expressions of interest (EOIs) from the private sector in extensive infrastructural PPPs for airports throughout the Family Islands.
Iglesias also warned that inflexible PPP contracts have also led to problems as projects progressed, be they through setbacks or ill-advised concessions.
"I support [PPPs], as long as those contracts are negotiated in a balanced way. What we've seen in the region is a shift from public management to concessions that are not properly negotiated.
"That creates some imbalances in how an airport is administered," said Iglesias.
Iglesias, along with other senior ALTA officials and CEOs from over 20 leading regional airlines, met for the opening of the 11th ALTA Airline Leaders Forum at Atlantis yesterday.
"We are not against public-private partnerships, what we are saying here is that if that's the way that government [goes], make sure that you hire people who are able to negotiate those agreements that leave some leeway to be renegotiated along the way.
"We need some degree of flexibility to be embedded in those agreements, to make sure that they can grow in a very efficient way," he said.

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