On financial close of the deal, Bermuda Skyport Corporation Limited (Skyport), a special purpose company formed and initially wholly-owned by Aecon Concessions, will take over the airport's operations, maintenance and commercial functions, and manage and co-ordinate the overall delivery of the redevelopment project over a 30-year concession term.
The new $274 million terminal is the key project of the gateway's Airport Redevelopment Project (Bermuda Airport Project).
Commercially, the project is being delivered under a Public-Private Partnership (P3) business model with Aecon, as the private sector partner, responsible for the project's development, financing and long-term operation and maintenance.
Under the agreement, CCC claims it will deliver a world-class new airport terminal and associated infrastructure under a fixed price, date guaranteed design and construction contract.
It will fully sub-contract the work to Aecon, with construction of the new terminal expected to begin shortly and scheduled to be completed in 40 months.
According to Aecon, the new works are being constructed on the airport property well removed from the existing terminal, allowing for uninterrupted operations of the existing terminal.
In addition to its construction mandate, Aecon's Concessions segment led the development and financing of the project.
Financing for the project has been arranged by Aecon, and includes a $285 million fixed coupon US private placement, amortised over a 25-year term, and approximately $70 million of shareholder equity to be contributed in the latter part of construction.
Advisors to Aecon on the project include UBS Investment Bank as financial advisor, McCarthy Tétrault as legal advisor and Mott MacDonald as the project's technical and traffic advisor.
The construction activities of the Bermuda Airport Project will be recorded in Aecon's Infrastructure segment, while the financing, operations, maintenance and concession activities will be recorded in Aecon's Concessions segment.
"Through Aecon's select participation in international projects such as the Bermuda Airport Redevelopment Project, we continue our long history of developing and building airports globally and add to our successful roster of experience as concessionaire," says John M Beck, president and CEO, Aecon Group Inc.
"The combination of the government-to-government and P3 procurement models is a unique offering brought to the table by CCC and Aecon to facilitate the delivery of a tailor made solution for Bermuda."
"We are very pleased to see the project move forward and are confident it will bring substantial value to both Bermuda and Aecon," says Steve Nackan, president of Aecon Concessions.
"Working with the Canadian Commercial Corporation and the Government of Bermuda, Aecon will meet the set objectives – delivering a world-class airport, as well as providing significant economic benefits to Bermuda."
While Martin Zablocki, president and CEO of CCC, notes: "This government-to-government project embodies the value, trust and collaboration of the long-standing bilateral relationship between Canada and Bermuda.
"Knowing the positive economic impact a modernized airport can have on Bermuda, CCC is excited to play a key role in the delivery of a world-class, customised solution to meet the needs of Bermudians – for both today, and generations to come."
The country's Deputy Premier and Minister of Finance, the Honourable ET Richards JP MP, says: "Bermuda is benefitting from a series of strategic initiatives to spur growth and prosperity.
"This transaction is one of them, but a very significant one that brings jobs for Bermudians and the knowledge that they are participating in one of the largest, and most important, infrastructure projects of our generation.
"This development helps our community to continue along a path of economic growth and prosperity.
"The benefits of this significant infrastructure project will be appreciated by Bermudians and visitors for many years to come. We look forward to a long, and mutually beneficial, relationship with our first-class partners."
According to Aecon the Bermuda Airport Project will deliver a larger, state-of-the-art, accessible terminal that can resist hurricane-force winds.
It will also improve passenger flow, introduce new and renovated facilities, and provide additional retail offerings to better meet the needs of airport users, today and in the future.
Key features of the project in addition to the new terminal include providing six new covered boarding bridges, new apron space for parking and refuelling or loading/unloading aircraft; modifications to taxiways to improve aircraft traffic flow; as well as energy and water efficiency features.