TORONTO — Aecon Group Inc. has announced it has achieved commercial and financial close on the L.F. Wade International Airport Redevelopment Project in Bermuda.
The project will deliver a larger, accessible terminal that can resist hurricane-force winds and will improve passenger flow, introduce new and renovated facilities and provide additional retail outlets.
Key features of the project in addition to the new terminal include providing six new covered boarding bridges, new apron space for parking, refuelling and loading and unloading aircraft, modifications to taxiways to improve aircraft traffic flow and enhanced energy and water efficiency features.
The March 16 announcement confirmed an agreement between Aecon, the Government of Bermuda and the Canadian Commercial Corporation (CCC), a Crown corporation of the Government of Canada. The project is being delivered under a public-private partnership (P3) business model. Aecon, as the private-sector partner, is responsible for the project’s development, financing and long-term operation and maintenance.
Under the agreement, the CCC will deliver a new airport terminal and associated infrastructure under a fixed price, date-guaranteed design and construction contract. The CCC will fully subcontract the work to Aecon under a construction contract valued at US$274 million.
Construction of the new terminal will begin shortly and is scheduled to be completed in 40 months.
In addition to its construction mandate, Aecon’s Concessions segment led the development and financing of the project, noted the Aecon media statement. On financial close, Bermuda Skyport Corporation Limited, a special-purpose company formed and initially wholly owned by Aecon Concessions, will take over the airport’s operations, maintenance and commercial functions, and manage and coordinate the overall delivery of the redevelopment project over a 30-year concession term.
Financing for the project has been arranged by Aecon, and includes a US$285 million fixed coupon U.S. private placement, amortized over a 25-year term, and approximately US$70 million of shareholder equity to be contributed in the latter part of construction. Advisors to Aecon on the project include UBS Investment Bank as financial advisor, McCarthy Tetrault as legal advisor and Mott MacDonald as the project’s technical and traffic advisor.
The construction activities of the Bermuda Airport Project will be recorded in Aecon’s Infrastructure segment, while the financing, operations, maintenance and concession activities will be recorded in Aecon’s Concessions segment.
"Aecon is committed to hiring as many qualified Bermudians on the project as possible," said Steve Nackan, president, Aecon Concessions, in a statement to the DCN. "But of course, we are excited to bring our Canadian airport development experience and our leading P3 and construction expertise to Bermuda."
"Through Aecon’s select participation in international projects such as the Bermuda Airport Redevelopment Project, we continue our long history of developing and building airports globally and add to our successful roster of experience as concessionaire," said John M. Beck, president and CEO, Aecon Group Inc. "The combination of the government-to-government and P3 procurement models is a unique offering brought to the table by CCC and Aecon to facilitate the delivery of a tailor-made solution for Bermuda."
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