Davis says cash-strapped govt committed to PPPs

Sun, Jun 21st 2015, 11:13 PM

With the government strapped for cash, the Christie administration plans to pursue public-private partnerships (PPPs) in commercially viable projects in the aviation sector to free up government resources. This comes as the Ministry of Works' focus shifts to critical infrastructure concerns, according to Deputy Prime Minister Philip Brave Davis.

Speaking with Guardian Business, Davis said that PPPs overseeing the development of airports, potable water and wastewater management are the Christie administration's chief infrastructural priorities moving forward.

"Going forward, because of the issues of the national debt of various small island states, not just The Bahamas, we are engaging in talks to have public-private partnerships in scenarios where the infrastructure project is investment-grade, where
revenue could be earned from it, like the airports, or roads where there might be a toll, for example," he said.

"From that point, that is how we are going down the list, and secondarily, infrastructure in those areas where it is intended to spur economic activities where for example we expect developments to commence," said Davis.

However, Davis said that the brunt of PPPs in the near future would focus specifically on the Christie administration's $180 million Family Island airport redevelopment initiative.

"Our focused attention is going to be placed on those infrastructure projects that require urgent attention for safety and access to communities, for example the Glass Window Bridge in North Eleuthera and Fishing Hole Road in Grand Bahama.

As for her ministry, Minister of Transport and Aviation Glenys Hanna-Martin noted during her contributions to the 2015/2016 budget debate that the government was finalizing the terms of a memorandum of understanding (MOU) with Odyssey Aviation for the full remediation of the runway and construction of a terminal at the damaged Staniel Cay airport.

Davis' comments coincided with a panel on aviation PPPs at the third annual CIBC FirstCaribbean International Bank Infrastructure Conference in Jamaica last week, at which international aviation experts stressed the economic benefits of PPPs in overhaul Caribbean air facilities.

Speaking at the conference in Montego Bay, David Pratt, managing director of major international airport investor LeighFisher, noted the significance of PPPs in redeveloping several major Caribbean airports and the corresponding economic development in the region.

Pratt highlighted the $409.5 million development of the Lynden Pindling International Airport as a boon for the local community and tourism. With completed PPPs for international airports in The Bahamas, Jamaica, Trinidad and Tobago, the Turks and Caicos Islands, Barbados and the Dominican Republic, Pratt said that plans are also on the way for the expansion and upgrading of airports in a number of Caribbean destinations, including the Family Islands.

However, Michelle Ottey, head of advisory services in public private partnerships for the Caribbean International Finance Corporation, stressed the importance of full government support in such endeavors.

"Governments need to commit to these major projects, or else they are doomed to fail. If governments consider the political risk too high and pull back, these types of projects will not get off the ground," she said.

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