A SPECIAL fund is to be set up to finance the expansion of the Sangster International Airport in Montego Bay and the Norman Manley International in Kingston.
Last week the House of Representatives approved regulations aimed at establishing the fund.
The Airports (Economic Regulation) (Expansion Fund) will be supported by an Airport Improvement Fee (AIF) to be paid by all passengers departing Jamaica at the two international airports. This levy of US$5 takes effect on February 15 and will be included as a charge on tickets issued on or after that date.
Persons travelling after February 15 but who purchased tickets before that date will not be required to pay the fee. Children under two years, airline crew on duty and in transit passengers are exempted from the charge.
Transport and Works Minister, Robert Pickersgill, who piloted the Order, explained that the AIF, when collected, would be paid into a Government Airport Expansion Fund Account for each airport. For Sangster, the fund will enable the financing of capital projects, which have been approved by Government and are entrenched in the Concession agreement for the privatisation of that airport. This includes the installation of six jet bridges at the existing terminal, expansion of immigration, customs baggage and ground transportation halls, installation of a modern computerised security system, constructing shopping areas as well as new immigration and checking areas, parking facilities, among other things.
The fees collected for Norman Manley, however, will remain unused until a programme of capital development has been approved for that facility.
Minister Pickersgill informed the House that the Airports Authority was working on a comprehensive development programme for Norman Manley, which should be presented to him before the end of the year. Once the programme is approved, an Airports (Economic Regulation) (Expansion Fund) Order will be promulgated for that airport, outlining the specific use for the AIF collected.
He said that AIF, or Passenger Facility Fees, were well established internationally as a source of capital development for airports, and was charged by many airports in North America and the Caribbean and other parts of the world. The amount of US$5 compares favourably with a charge per passenger of US$4.50 in the United States; US$3.21 to US$9.62 in Canada and US$9.62 and US$9.00 in Cuba and the Dominican Republic respectively.
To ensure certainty of revenue flows, a collection mechanism has been devised and agreement reached with the International Air Transport Association for direct payments to be made from airline funds to the GoJ account. The money must be paid over by the operator within 15 days or interest charges will be incurred.
Minister Pickersgill said the AIF will be for a fixed duration of 12 years and will be managed by a security agent appointed by the Minister. The fund will be subject to audit by the Auditor General. In addition, the Regulations require that the account be audited annually by an independent firm to be appointed by the Concessionaire and approved by the Minister.
