STATEMENT FROM SHG ON BASIL READ CONTRACT TERMINATION

The St Helena Government (SHG) notes with regret that ongoing negotiations between SHG and Basil Read's business rescue practitioners with regard to Basil Read's continuing role with St Helena Airport have not been successful. SHG has terminated the contract under which Basil Read have been operating St Helena Airport. The termination is effective as of today, Tuesday, 2 October 2018.

St Helena Airport is critical to St Helena, its people and the economic future of the Island.

DFID will continue to provide funding and support to ensure that the Airport remains open and operational. To this end and as part of SHG and DFID's contingency plans, a new company, St Helena Airport Ltd, has been set up to assume responsibility for the operation of the airport and to maintain the St Helena Aerodrome Certificate.

Subject to some conditions, which will be met, the Regulator, Air Safety Support International (ASSI), has agreed that the Aerodrome Certificate can be transferred over to the new company without the Airport having to be recertified.

It is intended that all of the current operational arrangements at St Helena Airport will continue.

SHG will be the principal party in St Helena Airport Ltd. The company will be limited by guarantee, using existing funding support from DFID. In the initial stages of establishing the Company, the Airport Contracts Manager, Deputy Financial Secretary and Airport Director are to serve as its directors. This is an interim arrangement until the Board of the Company is fully established over the coming weeks.

Contingency plans for the remaining construction work under the Airport Project will be implemented. Further discussions are taking place with critical staff, suppliers and sub-contractors.

During this difficult time we would like to thank the affected staff, suppliers and subcontractors for their continued support.

Source: St Helena Government

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