Changes in LaGuardia Airport P3 to increase cost

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Changes in LaGuardia Airport P3 to increase cost

Substantial changes to the planned redevelopment of New York’s LaGuardia Airport, which is being built through a public-private partnership, will cause the project’s costs to rise by 50 percent.

The scope of the project initially included:
a) Participate with the Authority in the replacement and financing of the existing Central Terminal Building at LaGuardia Airport including Frontage Roads, aprons, utilities, a central heating and refrigeration plant and other support facilities; 
b) operate and maintain the existing CTB during the construction period; 
c) manage the transition of airline and non-airline tenants to occupancy of the replacement CTB; 
d) operate and maintain the CHRP; and (e) operate and maintain the New CTB for a specified term.

Now the scope of work has been expanded to include building a new central hall to connect the new terminal to the rest of the airport and adding security screening and retail space and, potentially, a hotel. These modifications will increase the PPP project original estimated cost from $3.6 billion to up to $5 billion.

In January the Port Authority of New York and New Jersey’s Board of Commissioners voted unanimously to begin the first phase of the overall redevelopment of LaGuardia Airport by selecting LaGuardia Gateway Partners to develop the US$3.6 billion world-class facility to serve approximately 50% of the passenger volume at LaGuardia.

The team beat out competition from two other shortlisted teams: LGAlliance and LGA Central Terminal Consortium.

The wining team is comprised of Vantage Airport Group, Skanska and Meridiam for development and equity investment; Skanska and Walsh Construction as the construction joint venture; HOK and Parsons Brinckerhoff as the design joint venture; and Vantage Airport Group for management of the operations.

The 35-year lease project will be developed on a build, finance, operation and maintenance (DBFOM) basis.

If the Port Authority of New York and New Jersey’s Board of Directors approves the project soon, the new terminal could open by the end of 2021.

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