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