MEDIA FACT SHEET

Grantley Adams International Airport

Public-Private Partnership

Date: November, 2019

 

GAIA Inc. is seeking an experienced, qualified private investor to operate, expand and improve operations at the Grantley Adams International Airport through a PPP

  • GAIA Inc. will enter into a long-term performance-based public-private partnership with an airport operator
  • A PPP (Public-Private Partnership) is a contractual arrangement between the public and private sector, typically long term, where significant risks are transferred to the private sector
  • PPPs are primarily used for providing infrastructure, such as transportation systems including airports and ports, energy, water and sanitation, building and equipping schools and hospitals

The proposed PPP between GAIA Inc. and an airport operator is slated to begin by early 2021 

  • No agreements have been signed with any airport operators; a number of steps need to take place before this happens, including finalizing the structure of the PPP and requirements for the airport operator,  preparing bid documents, promoting the transaction to investors, negotiating with bidders, evaluating bids, and awarding the contract

The Grantley Adams International Airport is not being sold

  • The ownership of the airport will remain at all times with the Government of Barbados
  • The private operator will only have the right of use to the airport assets and the right to invest and expand the airport, similar to a lease, for the length of the partnership
  • At the end of the PPP, the airport’s assets return to the Government

Earlier this year GAIA Inc. began working with the IFC to help us find the most qualified airport operator

  • The International Finance Corporation (IFC) is the private sector arm of the World Bank Group which offers advisory and investment services
  • The IFC is advising GAIA Inc. in identifying the most qualified airport operator through an open, transparent competitive tender process
  • The final decision on which operator will be awarded the contract will be based on the evaluation of bids received against the criteria set by GAIA Inc./Government. IFC will provide support to them in the bid evaluation process
  • The IFC is not the new airport operator, it is only advising GAIA Inc. on identifying the most qualified operator

GAIA Inc.’s partnership with the private airport operator will last up to 30 years

  • GAIA Inc./Government will retain full ownership of the airport during this time
  • GAIA Inc. will closely monitor performance in line with the contract and financially penalize the operator in case of non-performance
  • At the end of the partnership, operations of the expanded airport will return to GAIA Inc.

A number of steps are being followed in order to attract the most suitable and experienced airport operator

  • September 2019 - The IFC completed a comprehensive appraisal, or due diligence, of the airport and its operations
  • September and October 2019 - A team from the IFC was in Barbados for further engagement with stakeholders and to outline the indicative Master Plan that will be used to guide the contractual obligations related to capital improvements to be made to the airport by the new operator
  • IFC is developing a detailed structure for the partnership and the obligations the private operator will be required to meet under the PPP
  • The government is due to approve this structure in November 2019
  • After this the bid process to find a suitable private partner will begin in earnest
  • The investor selection process and award for the GAIA PPP will be concluded in 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
  • This process is highly structured, is keeping in line with international standards, and has a number of detailed steps because we want the best outcome for Barbados

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