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Ministry of Transportation & Works

 

Divestment of Sangster Airport a Prototype for Norman Manley

MONTEGO BAY (JIS)
Tuesday, June 15, 2004

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Minister of Transport and Works, Robert Pickersgill, addressing the audience during the official opening of the new arrival hall facilities at the Sangster Inernational Airport in Montego Bay.

The privatisation and subsequent expansion of the Sangster International Airport in Montego Bay, St. James has been described as a success, and Government is now using that initiative as a prototype for the eventual privatisation of the Norman Manley International Airport in Kingston.

Minister of Transport and Works, Robert Pickersgill said the process was already in motion, and an operating company, NMIA Airports Limited, was now in place for that purpose. He said that NMIA Airports Limited was an approved airport operator under the Airports (Economic Regulation) Act of 2002.

"This company is a subsidiary of the Airports Authority of Jamaica (AAJ), and has entered into a concession agreement with the AAJ to operate the Norman Manley International Airport. Additionally, NMIA Airports Limited is responsible for obtaining the financing that will be necessary for expanding the airport and paying concession fees, among other activities," he outlined.

Mr. Pickersgill was speaking at the official opening of the new arrival hall facilities at the Sangster International Airport on Friday, June 11.

The facilities represent the completion of phase 1A of an improvement and expansion programme being carried out at the Sangster International Airport by MBJ Airports limited, which has leased the airport. MBJ Airports Limited has been in control of the Sangster International Airport since April of 2003, when the government divested the facility.

The Minister pointed out that under a 20-year capital development programme for the Norman Manley International Airport, some US$127 million would be invested in infrastructure expansion and improvement works at that facility. He said that of this amount, approximately US$92 million would be disbursed over an initial six-year period, which began in the 2003/04 financial year.

"In this regard, in October 2003, I signed the contract for the related master plan and terminal design, valued at US$3.2 million. The final draft of the terminal design should be ready by the middle of July," Mr. Pickersgill said.

He added that construction of the terminal would begin in the second quarter of calendar year 2005.

The Minister pointed out that a contract valued at $161.4 million for additions and alterations to the departure concourse at the Norman Manley International Airport had been signed by him, and that about 20 per cent of the work had been done.

He explained that the upgrading work at the airport was taking place against the background of an expected 2.6 per cent annual growth in passenger throughput right up to the year 2022.

Mr. Pickersgill explained that the US$5 airport improvement fee being charged to departing passengers at both the Norman Manley and Sangster International Airports, was dedicated to the capital development of both airports. He pointed out that as at April 2004, US$2.7 million had been collected for the Norman Manley airport, while US$6.35 million had been collected for the Sangster airport.


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