The Virgin Islands Port Authority announced “SkyCity VI Airports Company” as the special purpose company to redevelop the Cyril E. King Airport and the Henry E. Rohlsen Airport as part of the public-private partnership (P3) project that is anticipated to begin next year.
In March, the Virgin Islands Port Authority selected VIports Partners as the potential public-private partner for both the King and Rohlsen airports during a special governing board meeting. VIports Partners comprises of terminal developer- Aecon Group Inc., equity providers- Aecon and Tikehau Star Infra, airport operator- AvPorts LLC, terminal architects- Corgan Associates, Inc., contractors- Aecon, Joint Venture of Consigli Construction and J. Benton Construction, and legal team- Orrick, Herrington & Sutcliffe, LLP and Dudley Rich LLP.
According to Port Authority’s Public Information Officer, Monifa Brathwaite, SkyCity is a conglomerate of the companies that make up VIport Partners.
“They are not subcontractors. The team are the same members of VIports Partners working under the name ‘SkyCity’ as a special purpose company, which is created for a specific reason. In this case the reason is to develop, finance, and operate the airports on behalf of VIPA during the lease term,” said Brathwaite.
In the press release issued by the Port Authority, the partnership was selected to redevelop the airports on St. Croix and St. Thomas under a collaborative design, build, finance, operate and maintain P3 model. SkyCity is a special-purpose company comprising Aecon as the developer and lead constructor, Tikehau Star Infra as a developer, local construction partner J. Benton Construction, and operations and maintenance partner Avports to carry out the task. As such, SkyCity will redevelop and take over long-term operations, maintenance, and commercial functions of the airports.
“We expect financial close for the P3 agreement in the first quarter of calendar year 2025 and construction to begin mid to late 2025,” said Brathwaite. “Both airports will be under construction at the same time and the project will take approximately three to four years to complete.”
Brathwaite said that the completion of the project will include redeveloped terminals that have passenger boarding bridges and stair access, which will accommodate all types of aircraft utilizing the airport facilities.
“While the addition of passenger boarding bridges is included in the plans for both CEKA and HERA, the design for both terminals are still a work in progress. We will share more information when we have completed the ongoing transition process,” Brathwaite said. “The details of the new designs for both airport terminals will be shared with the public once the designs are finalized.”
To gain profit, the Port Authority will receive annual rent payments and a share in airport revenues. According to Brathwaite, short and long-term maintenance at both airports will be paid for by the private partner during the lease term.
“The private partner will serve as VIPA’s agent and operate the Airport,” Brathwaite said.
Currently, the Port Authority is in a transition period before the renovation project can begin and the P3 agreement officially enacted.
“The transition period is anticipated to take nine months from the signing of the Transition Agreement, which took place on April 5, 2024, at a joint press conference held at Government House with Governor Albert Bryan Jr., VIPA, and representatives of VIports Partners. The final P3 agreement will not be signed until the transition period is completed,” said Brathwaite.
When asked how long will the P3 agreement last and if the Port Authority will still have authority to override decisions made by VIports once the P3 agreement is official, Brathwaite said that the terms are still being finalized.
“VIPA will maintain ownership and oversight of both airports and remain the airports’ sponsor with the FAA during the lease period. As owner of the airports, the authority’s board of directors and management will have input and oversight in airport operations,” said Brathwaite.
She also highlighted that the partnership is not a privatization.
“Please note that this is not a privatization, and that term should not be used in reference to this project. The airports are not being privatized. This agreement will be a public-private partnership allowing for private investment and development of the USVI airports,” said Brathwaite.
Further information about the project is available on the VIPA Airports P3 Project website and www.skycityvi.com.
