Challenges
Under Cayman Islands legislation there is a requirement to demonstrate that a proposed development would be value for money to the airport itself, stakeholders and businesses associated with the airport, and the wider Cayman Islands economy. Enhancements had to be delivered without taking on further CI Government debt.
Solution
We gained full access to airport senior management for an extended period of time and undertook an extensive review of their financial accounts. We evaluated the current financial model, advising on improvements to business structure, financial controls, revenue/cost optimisation of existing publicly owned assets.
We proposed a process that aligns with ‘Value for Money’ (VfM) legislation. To demonstrate value, we authored a PFI VfM paper to inform negotiations between the Cayman Islands Premier, governor of the islands and UK government on the prospective public private partnership concession and wider macro-economic and fiscal benefits that the concession would bring to the islands.
Benefits
We delivered a bankable business case for investment off the back of route development, increased commercialisation and capital development of the assets.
As part of the due diligence, we developed a concept design and business plan, proprietary to Aecon, for optimisation of the airfield and terminal buildings, which:
- Doubled the operational capacity of the airports whilst delivering the enhanced terminal capacity for 20% less
- Allowed the airports to immediately invest in the various safety and regulatory improvements that have been highlighted by bodies such as the CI CAA and ASSI
- Improved customer satisfaction by modernising and improving terminal passenger flows to match the international standing of the Caymans as a leading financial centre and premier tourist destination
- Ensured deliverability of capital development by phasing construction to protect the ongoing operations of the airport, whilst bringing improvements online an estimated three years earlier than traditional procurement routes