Information Minister, Burchell Whiteman.
THE NATIONAL Investment Bank of Jamaica (NIBJ) is in the final stages of concluding
arrangements for the privatisation of the Sangster International Airport, Burchell
Whiteman, Information Minister, said yesterday.
Mr. Whiteman, who was addressing journalists at the first post-Cabinet press
briefing at Jamaica House since the October 16 General Election, said the transfer
of the airport's operations from the Airports Authority of Jamaica (AAJ) to
YVRAS Consortium of Vancouver, Canada, should be concluded by December 31.
The privatisation of the airport will be effected by the grant of a 30-year concession agreement to develop and manage the facility. The 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.
Privatisation is limited to the operation of the airport and the development of the physical infrastructure, an undertaking estimated to cost US$200 million.
Mr. Whiteman disclosed that Cabinet had approved the arrangements which had
been made with respect to the collection of airport charges accruing to the
operators of the airport and the Government. He said the recently-passed Airports
(Economic Regulation) Act will be amended to "ensure that there is no impediment
to the collection of the fees."
The Minister explained that the divestment of the management of the airport
is consistent with Government's stated policies of: modernising air and seaports;
attracting foreign capital to finance development activities; facilitating private
enterprise to perform functions which Government is not obligated to provide
and which can be done as well as or better by a private entity; and permitting
Government to use tax revenues for the critical programmes such as education,
health and security.
