Airport Reform and Improvement Programme - IDB/GOJ

Under the Airport Reform and Improvement Programme (AIRP), a loan of US$59m was obtained to improve the efficiency, quality and sustainability of the airport transportation services available to the tourism industry and the export sectors of the economy.

The Civil Works component of the runway, taxiway and rehabilitation project valued at US$12.5m was completed in May 1998. It comprised the following:

Full depth excavation and reconstruction of all eight taxiways, approximately 4000 metres (2.5 miles) in length and a paved area of 40 acres (160,000 square miles).
Rehabilitation of the lighting system of the runway and taxiway as well as the approach lighting system.
Construction of a sub-station, security fencing and the shore protection around the perimeter of the airport.
The enhancement of airport signing.
Other projects completed under the ARIP;

The reconstruction of the apron and hydrant refueling system at a cost of J$577m.

The upgrading and rehabilitation of the Civil Aviation Authority and administrative facilities, which included a National Air Traffic Control Centre, and installation of navigational aids, equipment and associated facilities at both the Norman Manley and the Sangster International Airports. This component also included the training of AAJ employees in the areas of operations and maintenance.

The preparation of the airport sector for privatization.

With regards to the privatisation of the Sangster International Airport (SIA), formal offers were received from four bidding groups on April 2, 2001, and the Vancouver Airport Consortium was selected as the preferred bidder. They have since established a special purpose company, Montego Bay Jamaica Airports Ltd. (MBJ Airports) to operate the SIA.

The privatisation agreement for the Sangster International Airport was later signed on January 15, 2003, between the Government of Jamaica and Vancouver Airport Services Ltd. Under the terms of divestment, the Airports Authority of Jamaica will sub-contract all its rights and responsibilities in respect of the management, operation, maintenance and development of the airport to MBJ Airports Ltd. for a period of 30 years.

MBJ Airports will be required to secure financing for and to implement the planned development programme for SIA. All revenues derived from the operation of the airport will flow to the company, which will in turn, pay to the Government an annual concession fee based on traffic and cargo flows through the airport.

The Civil Aviation Authority will regulate the activities of SIA, including the regulation of charges and the monitoring of activities for anti-competitive practices, and will be responsible for issuing licenses to the airport operators. The take over of the Sangster International Airport should be completed by March 2003.