INTELCAN Techno Systems based in Canada has been endorsed to build twin towers for the Jamaica Civil Aviation Authority (JCAA) at both major international airports costing CDN$20 million ($1.65 billion).

The contract endorsement was announced last week by the National Contracts Committee and involves the design, construction and equipping of the control towers at the Norman Manley and Sangster International Airports.

The JCAA, who regulates the airways, told the Business Observer last year that the upgrade was 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, JCAA added. The JCAA would not disclose the technical deficiencies at the existing towers but stated that “we now have to replace the existing towers”.

JCAA’s capital expenditure this fiscal year is $1.65 billion up 120 per cent from the previous year with 1.37 billion related to air navigation services, according to the Jamaica Public Bodies which is published by the finance ministry.

The JCAA revenues are expected to gross $3 billion this fiscal year versus $2 billion in the prior year. The reason for the revenue hike is due to the newly introduced passenger service charge which is expected to garner $1.6 billion this fiscal year. Last year, the JCAA told the Business Observer that the rise in its revenues was due to the adjustment of its billing process to improve efficiency and sustainability. The JCAA is becoming a cash cow for government as it is expected to earn a $1.5-billion net surplus this fiscal year, up from just $503 million in the prior fiscal year, according to the Jamaica Public Bodies.

The JCAA told the Business Observer last November that an undisclosed “Canadian contractor has been identified to design and build” the towers. The contract will continue despite fiscal tightening by Government which is locked in an International Monetary Fund loan agreement.

Intelcan provides air traffic control and aviation infrastructure solutions. Headquartered in Ottawa Canada the firm says it manufactures, supplies, and integrates communications, navigation, Surveillance, and Air Traffic Management solutions on a complete turnkey basis. Intelcan has delivered complete turnkey solutions in over 60 countries. Established in 1973, Intelcan has offices in France, Cyprus, Bulgaria, Cuba, and Romania.

The tower upgrade follows the completion of Phase 1A of the refurbished and upgraded terminals at NMIA. 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.