GAIA Public Private Partnership Project Site

Frequently Asked Questions

What is a PPP?

  • A PPP is a Public-Private Partnership, a contract between a public entity/government and a private investor
  • The purpose is for a private investor to fund, construct, maintain, operate and then return an ‘asset’ back to the public sector
  • The public partner is represented by the government (or GAIA Inc. in this case), and on the other side the private partner could be a privately-owned business or group of businesses with special expertise

Why have a PPP now for Grantley Adams International Airport (GAIA)? Isn’t it fine as it is?

  • Passenger traffic at the airport is set to increase in the coming decades
  • The terminal building needs expansion in order to cope with current and future demands
  • The level of service and efficiency of the airport can be improved even more in accordance with international industry recommendations
  • Investing in the airport can help the Barbados economy to grow

What will the PPP for the airport look like?

  • The airport will still be owned by GAIA Inc./ Government of Barbados
  • It will be a partnership, not privatisation, nor a sale of the airport
  • This partnership will last for up to 30 yearst
  • The operations of the airport will be transformed in a way that's beneficial to the airport, the economy, and the country
  • Imagine improved services, ways of doing things, and amenities

Who is the International Finance Corporation (IFC)?

  • The IFC is a private sector arm of the World Bank
  • It provides advice and secures financing for private investment projects in emerging markets
  • The IFC is advising GAIA Inc. and the Barbados Government on how they can find a suitable and qualified partner for the airport

Has a new operator been appointed at the airport?

  • No, the airport is still operated by the GAIA Inc
  • A new international airport operator will not be appointed or awarded a tender until 2020
  • Following the award to the winning bidder, the investor will need to conclude financing agreements with lenders before taking over the airport
  • The investor will start operating the airport by early 2021
  • What you see happening now is the in-depth preparation for finding a new partner
  • There is a lot to be considered from a legal, financial, and technical point of view before a partner is selected
  • In a nutshell, no one knows who the new operator is because the bidding process hasn't started yet