Sunday, September 22, 2019

PM Says Proposed Opposition Model Will Not Result In ‘Free’ Airport

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Prime Minister Allen Chastanet has  has declared that a Public Private Partnership (PPP) model proposed by the opposition Saint Lucia Labour Party (SLP), will not give this country a ‘free’ airport.

“This is absolutely false,” Chastanet asserted in a post on his official Facebook page.

He observed that there are fundamental differences in his administration’s  approach to the redevelopment of Hewanorra International Airport and that of the Opposition.

According to the PM, under the PPP proposed by the Labour Party, Saint Lucia would dedicate $60USD per passenger from the Airport Development tax to a private entity for 30 years.

“We currently receive 400,000 arrivals a year, which would give the PPP developer a yearly income of $24 Million USD and a total of $720 Million USD or $1.9 Billion EC over the 30 year period. Please note that the cost of redeveloping the airport is $175 Million USD,” Chastanet explained.

“By going with my Administration’s approach of taking a loan and dedicating this very same Airport Development tax towards repaying the loan, we will be able to repay the loan in 11 years,” he stated.

He observed that his administration’s  approach would save Saint Lucia over $1 Billion EC dollars on this development alone; over $1 Billion of  which could go into Agriculture, Healthcare, Education, Infrastructure, Security and  many other social programmes instead of going into the hands of a private developer.

 

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11 COMMENTS

  1. Bull Crap ! Under PPP the government would keep the landing fees and most of the departure tax and the rest of franchise in the airport the contractor gets. ITS THE LANDING FEES THAT GOVERMENT MOSTLY RELIES ON and you notice he mention nothing about this only “departure tax”. Talking crap how it will only cost 175 million it going to cost WAY MORE THAN THAT you will hear of the “cost overruns”. How it save us 1 billion YES FOR YOU AND GUY AND KING TO SPLIT trying to poppy show St Lucians .

  2. PPP is waaaay cheaper that’s why other Caribbean country doing it you think they did not do the math’s is just so they going to hand over their airports the heart and life of their countries you must be mad is the money they want their hands on. From the inception that’s what it is all about go read the Miami Heard again nothing but a bunch of crooks.

  3. Guy will comit suicide if he dosent get this contract.But we need the airport.Is the prime minister of SLASPA involved by any chance?

  4. You are assuming that the tourism industry will stay hot all during this time period. What if there are a few downturns in this industry. What would you do then? Where would the money come from? What are the contingency plans for if arrivals decrease. As I have said before…we are not stupid it’s simple math. Have we taken the issue of maintenance into account. We cannot even maintain the present allotment of buildings own by government presently. The airport will be an elephant compared to what’s there right now. If you were being fair to the people you would have explain all these things, but you only discuss the rosy side of things to make you and party look good. I hope people see through these half truths. Remember St.Judes the Albatross in the room….we are still struggling to get it completed and also maintain qualified staffing for the new hospital.

  5. Your father a very shrewd and successful businessman don’t want you anywhere near his operations. Yet I should trust your business sense running the country? This loan is fraught with MASSIVE risk for ALL of the OECS as several banks are involved. Tie your waste people as St. Lucia is one of the larger economies in the OECS. If this fails, it takes everything down with it.

  6. Private Partnerships should be avoided as much as possible. Remember the Private business has to be making a nice profit to be willing to take the risk. No business goes into a partnership knowing it might loose a lot of money. We did something similar in Toronto when we sold one of our Toll Highways to a Foreign country to build and maintain. The highway is now over priced and nobody is happy. They keep raising the fees overcharging people. Had we kept it with the government we would have been retaining all the future profits and would have made sure it was always affordable.

    I think it totally makes sense to keep all the income in St.Lucia’s pocket and allow them to run the airport as they see fit then to basically some foreign company to do the job.

    I also wouldn’t look at other Caribbean countries actions and say that St.Lucia should do. You have no idea why those countries choose to go the route they did. For all you know they are too afraid and too soft to the steps required to make huge changes.

  7. He fails to mention that the PPP provided the GOVT a monthly payment worth a couple millions dollars. He also forgot to include the high maintenance costs of such an airport that we would avoid in the PPP agreement. The PPP is the ways most countries are going for their airports right now. Just say you have to make sure Guy(FreshStart) and your wife (Lawyer fees) give a piece of the pie. Also stop trying to undervalued the loans for this project, you are already looking for more than the 175 US million dollars already secured for the airport.

    • Most Caribbean Countries and others all over the world are turning to PPP because its a drag on government coffers and taxes payers to run an airport. It’s costing more than or close to a million dollars PER DAY to run both airports in St Lucia and you don’t think Allen Chastanet knows this. I don’t even bother to respond to Dumbo’s because no matter even if its clear as daylight to them their school of thought and Jaconian mind set only views everything or anything thru a yellow political spectrum. That airport will not 175 million wait you will see just now.

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