Jamaica News: Approximately $1.36 billion is budgeted for capital works at the Norman Manley International Airport (NMIA) in Kingston by the Airports Authority of Jamaica (AAJ), during the current fiscal year.
According to the 2019/20 Jamaica Public Bodies Estimates of Revenue and Expenditure, this forms part of the AAJ’s execution of a 20-year capital development programme at the facility, which is slated for completion by the 2020/21 fiscal year.
The document further indicates that this, coupled with the execution of a shoreline protection project at a cost of $670 million, will account for approximately 70 per cent of the budgeted $2.89-billion capital expenditure this year.
Meanwhile, consequent on relinquishing operational responsibilities for NMIA, the AAJ will, this year, focus its strategic priorities on establishing new organisation and governance structures for improved airport system oversight and effective service delivery.
The new organisational structure will focus on AAJ’s effective execution of its functions as airport and concession managers, and aviation and aerodrome developers.
The AAJ’s relinquishment of NMIA operational responsibilities results from privatisation of the facility’s operations to new concessionaire PAC Kingston Airport Limited, a wholly owned subsidiary of Mexican entity Grupo Aeroportuario del Pacifico (GAP), under a public-private partnership (PPP) arrangement.
This sees the 30-year management arrangement by AAJ subsidiary Norman Manley International Airport Limited being terminated and replaced with a 25-year agreement with PAC, in keeping with the new concession’s provisions.
The PPP is expected to deliver $110 million in private investments towards NMIA’s expansion and upgrading, and returns to the AAJ via annual concession fees.
The AAJ projects the accrual of approximately $4.4 billion this year, as against an estimated $3.67 billion for 2018/19.
The entity’s staff complement will, however, be reduced from 369 to 151 employees this year.
Source: JIS News