GAIA Public Private Partnership Project Site

Frequently Asked Questions

(Revised November 2021)

What is a PPP?

  • A PPP is a Public-Private Partnership – a contract between a public entity/ government and a private partner
  • In this case, the public partner would be represented by GAIA Inc./the Government of Barbados and, on the other side, a privately-owned business or group of businesses with specialised expertise in airport construction and operation
  • PPPs are typically used to provide financing for infrastructure projects including those for ports, energy, water, sanitation, schools and hospitals
  • During a PPP, the private partner is contracted to expand, operate and maintain the public asset for a specific period of time

What’s the difference between privatisation and a PPP?

  • Privatisation involves the sale of a public entity to a private buyer
  • The airport is not being sold
  • Instead, GAIA Inc. will enter into a PPP agreement with a private operator
  • Under the PPP, the private operator will have a contract that gives it the right to invest, expand and operate the airport for the length of the partnership
  •  At the end of the contract the right to operate the airport will return to GAIA Inc.
  • Ownership of the airport will be retained by GAIA Inc. at all times

Why is GAIA Inc. seeking to enter a PPP?

  • Isn’t it fine as it is?  
  • A private operator is best positioned to drive recovery of passenger traffic due to the pandemic, leveraging route development capabilities and airline relationships
  • After the recovery period, passenger traffic at the airport is set to increase in the coming decades
  • Improvements to the terminal building are needed to offer a better experience for customers and airport staff
  • Service and efficiency at the airport can be improved even more to meet international industry recommendations
  • Investing in the airport can help the Barbados economy to grow

Why are plans for the GAIA PPP going ahead during the COVID-19 pandemic?

  • In light of COVID-19’s impact, a highly experienced private airport operator can help lead the redesign of the airport in keeping with the new realities of the industry
  • The right private partner can make the most of its existing relationships with airlines, improve GAIA Inc.’s route planning, and collaborate with the government to create incentives that attract airlines and travelers back to Barbados

What will the GAIA PPP look like?

  • It will be a partnership between GAIA Inc. and a private operator, not the privatisation/sale of the airport
  •  The airport will still be owned by the Government of Barbados/GAIA Inc.
  • Airport operations will be transformed in a way that’s beneficial to GAIA Inc., the economy, and the country. GAIA Inc. will receive a percentage of revenue from the operator (concession fee)
  • Imagine improved services, processes and amenities

How long will the GAIA PPP be in place?

  • GAIA Inc.’s partnership with the private airport operator will last for approximately 30 years
  • The Government of Barbados/GAIA Inc. will retain full ownership of the airport during the course of the PPP
  • GAIA Inc. will closely monitor performance in line with the contract and financially penalise the operator in the case of non-performance
  • At the end of the partnership, the operations of the expanded airport will return to GAIA Inc.

How will GAIA Inc. select a private partner?

  • To find a suitable and qualified private partner, GAIA Inc. will conduct an open, transparent bid process that has a number of detailed steps, and follows local laws and international standards
  • Throughout the bid process, GAIA Inc. will be assisted by the International Finance Corporation (IFC), the private sector arm of the World Bank experienced in providing advice to the public sector for private investment projects in emerging markets
  • The best private partner will be chosen by the Government of Barbados/GAIA Inc. based on the evaluation of submitted bids against pre-established criteria

What milestones have been achieved so far?

In August 2020 following a prequalification process, GAIA Inc. publicly announced the names of 13 approved bidders:

  1.  Companhia de Participações em Concessões S.A.
  2.  Corporación Aeroportuaria del Este, S.A.S.
  3.  Corporación Americas Airports S.A.
  4.  daa International Limited
  5.  EGIS Projects S.A. in consortium with Bouygues Bâtiment International, Jamaica Producers Group Limited, and Eppley Limited
  6.  Ferrovial Airports International SE
  7.  Groupe ADP
  8.  Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (GACN)
  9.  Grupo Aeroportuario del Pacífico
  10.  Incheon International Airport Corporation
  11.  Schiphol Nederland B.V. 12. Vantage Airport Group Ltd.
  12.  Vantage Airport Group Ltd.
  13.  VINCI Airports in consortium with Williams Industries

What’s the next major milestone?

By the end of March 2022 we expect the launch of the bid process where the concession agreement and bid documents will be issued to the the 13 prequalified investors.