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Business, Financials
November 24, 2009

$1 billion to be spent on towers at airports

Some $1 billion will be spent this fiscal year to replace the control towers at Kingston and Montego Bay international airports, the Business Observer confirmed.

Construction will begin at Sangster International Airport in Montego Bay followed by Norman Manley International Airport (NMIA) in Kingston.

An undisclosed “Canadian contractor has been identified to design and build” the towers, said the Jamaica Civil Aviation Authority (JCAA) who regulates the airways and has budgeted for the build-out.

Despite fiscal tightening by Government, the JCAA says it will continue with the tower construction.

“The project is still on the books for the financial year,” JCAA head of public relations Nicole Robinson told the Business Observer. “This is in keeping with the Airports’ Master Plans for the development of their terminal buildings. Construction of the tower at the Sangster International Airport is slated to begin before the one at the Norman Manley International Airport.”

The JCAA would not disclose the technical deficiencies at the existing towers but stated that “we now have to replace the existing towers”.

“The contracts are not for upgrading the towers but to replace them with stand-alone towers,” the JCAA told the Business Observer.

JCAA’s capital expenditure this fiscal year is $1.41 billion and 73 per cent or $1 billion is related to replacement of the control towers, according to Jamaica Public Bodies which is published by the finance ministry.

The JCAA air navigation fees are projected to increase from $1.3 billion to $2.2 billion this financial year based on finance ministry budgeted data. “…we are currently looking into adjusting our billing process to improve efficiency and sustainability,” stated Robinson.

The completion of the refurbished departure terminals at NMIA was the largest component of the Phase 1A programme for the airport’s modernisation. Phase 1 of the three-phase project was initially estimated to cost US$63 million, but was later upped to US$120 million. This, according to Prime Minister Bruce Golding, was due to changes in the scope of work, including bringing forward some elements originally scheduled for Phase 2, as well as increased construction cost. The remaining two phases are projected to cost an additional US$41 million.

Sangster International Airport is controlled by Spain’s Abertis Group. The company spent some US$185 million in investments and infrastructure at the airport which was originally slated for US$102 million.

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