Bahamas Update: G.B.I.A, Another Attempt At Development

• Deputy Prime Minister Chester Cooper, who is in charge of tourism, investments, and aviation, announced that the government reached an agreement with a Bahamian-English consortium to undertake a $200Mn redevelopment of the Grand Bahama International Airport (GBIA).
• GBIA was damaged by Hurricane Dorian in September 2019. Its subpar state has been a hurdle for the economy of Grand Bahama. Following more than a year of negotiations with the US-based Electra Group, the government abandoned plans to sell and develop the Grand Lucayan resort. Cooper argued that to sell Grand Lucayan, GBIA must be fixed first to host US Customs and Border Protection Preclearance, which never returned after Dorian.
• The consortium will therefore “build, finance, operate, maintain and redevelop” the GBIA. Cooper stated that their mandate is to develop a resilient, efficient, commercially successful world-class airport.
• The project is expected to generate 1200 construction jobs. The UK Export Finance unit will provide financing for the project. The consortium is composed of Bahamas-based Aerodrome and British Manchester Airport Group Ltd and BHM Construction International.
• Investment planning is set to start immediately and the first phase of the project is scheduled for completion by Q1 2025. The second phase will last another three years.
• Once completed, the airport will be operated by Manchester Airport Group and profits generated by GBIA will go to an airport infrastructure fund.
• If confirmed, this will be good news for the Bahamas as it will aid in improving employment and tourists arrivals. However, the plan is still subject to environmental approvals as the airport location is exposed to natural elements, and has been damaged repeatedly by all major hurricanes that hit the Bahamas; so feasibility and environmental studies will be of the essence.

(Source: Oppenheimer)