Gov't incurs $120 million in failed effort to divest Norman Manley Airport
Transport Minister Dr Omar Davies has revealed that as at December 2015, the government incurred US$1 million (J$120 million) in the failed effort to privatise the Norman Manley International Airport.
Davies, speaking in the House of Representatives this afternoon, said he expects to receive by month end, a report from the team that led the failed bid.
Despite five entities having been shortlisted to take over the airport located on the Palisadoes peninsula, no bids were received at the close of the bidding period.
Mike Henry, the Opposition Spokesman on Works said the potential investors felt the rate of return would not make the investment viable.
Meanwhile, Davies said one of the shortlisted firms who was in contact with him indicated that it did not bid because one of its partners was unable to come up with the required capital injection.
The spending breakdown
US$648 - International financial Corporation which as lead advisor
US$109 - Airport Authorities legal and other services
US$175 - Development Bank of Jamaica for management services