Public Private Partnership
What it means?
A Public Private Partnership, commonly referred to as a P3, is a long-term performance-based agreement to develop public infrastructure, usually between a government entity and the private sector. In P3 agreements, the private sector party typically assumes design, construction and maintenance risks and ensures the effective performance of the infrastructure asset from the design and construction phase to the long-term operational phase. Remuneration is typically linked to performance as set out in the Project Agreement.
The Project Agreement
The Project Agreement is the legal contract between the public sector party and the private sector party. The term of the L.F. Wade International Airport Project Agreement is 30 years from the date that it was signed - 15 March 2017 to 15 March 2047.
Who are the contracting parties?
The Bermuda Airport Authority is the public sector party to the Project Agreement. The Authority is a quango representing the interests of the Government of Bermuda and is the owner of the L.F. Wade International Airport. Bermuda Skyport Corporation Limited (Skyport) is the private sector party to the Project Agreement.
The role of Skyport
Skyport, a wholly owned subsidiary of Aecon, is responsible for delivering the new airport terminal building as well as the operation and maintenance of the existing airport facility. Following the completion of the new airport terminal building, Skyport will be responsible for its ongoing operation and maintenance.
The role of the Bermuda Airport Authority
The Authority oversees Skyport’s performance in the design and construction of the new airport terminal building. The Authority also oversees Skyport’s operation of the existing airport facility during the 40-month construction period. The Authority will retain oversight of Skyport’s operations and maintenance of the airport for the duration of the Project Agreement following the completion of the new airport terminal building.
How the Bermuda Airport Authority provides oversight on behalf of the Government
The Authority is comprised of a team of professionals with technical, financial and airport management expertise, including internal and external resources who are extensively experienced in P3 contract management and the aviation sector. The Authority will carefully manage the Project Agreement to ensure quality assurance and compliance with specifications, design and construction protocols and will hold Skyport accountable for meeting its contractual obligations.