By Lynford Simpson, Staff Reporter
Whiteman
THE SENATE on Friday passed the Airports (Economic Regulation) Bill, 2001, paving the way for the full privatisation of the Sangster International Airport (SIA) during the current financial year.
This comes two weeks after the Bill was passed in the Lower House.
Senator Burchell Whiteman, Leader of Government Business in the Senate, who piloted the Bill, said the necessary groundwork was well advanced for the exercise which is estimated to cost in excess of US$200 million ($9.5 billion). He said the privatisation will be effected by the grant of a 30-year concession agreement to develop and manage the airport.
Mr. Whiteman stressed that the Jamaican Government will continue to own the airport property and will have the right to terminate the concession in the event that the private operator fails to meet his contractual obligations. The likely operator is YVRAS Consortium, headed by Vancouver Airport Services of Canada, with whom the Government is currently in negotiations.
The group which was granted selected bidder status by Cabinet, will be required to complete phases one and two of the development in accordance with the concession agreement.
Oswald Harding, Leader of Opposition Business in the Senate, supported the Bill, noting the need for local airports to be brought in line with international standards. But, he wanted more details on the terms and conditions of the contract to the consortium.
He wanted to know the terms under which the contract could be terminated. He also wanted to know what would be done to enhance security at the island's airports. "Perhaps these things are well taken care of. It's just that the information is not before us," Harding commented.
Probing for more details, the Opposition Senator argued that the public would have an interest in knowing who are the persons that make up this consortium. "We want to know who we are dealing with," he stated.
Government Senator, Navel Clarke, supported the Bill but wanted more details on safety issues and the treatment of persons with disability after the take-over.
Independent Senator Dr. Trevor Munroe in his contribution to the debate expressed concerns of a security nature. He pointed out that the Bill makes no provision for the Minister of National Security to give directions to the Civil Aviation Authority (CAA), as distinct from the Airports Authority of Jamaica (AAJ).
"The time has come, given the enormity of the illicit drug trade and the use of Jamaican waters to carry out this activity, including arms trafficking that attention be given to centralising the directives in respect of national security in the relevant minister," he said.
The main objectives of the privatisation are:
To attract private financing for urgently needed development and expansion at the airport as well as the requisite expertise to run the facility for a prescribed period.
To enhance the competitive position of the airport and Jamaica as a tourism destination.
To facilitate the sustained growth of tourism through joint partnership with a concessionaire with solid financial backing in the development of a modern, attractive facility which meets international standards.
To facilitate the exploitation of the full commercial potential of the airport thereby broadening its revenue base and reducing its heavy dependence on passenger and landing charges.
Phase one will result in the construction of four aircraft parking positions and supporting taxi-way; construction of a three level airside building to accommodate 12 gates fitted with apron drive jet loading bridges; and the relocation and upgrading of the control tower facility.
Phase two will see the construction of a new landside terminal building with the capability for future expansion as well as the construction of a connector linking the airside and landside terminal buildings.
The Bill was passed with one amendment.