Government bonds could be issued to pay for the long-delayed expansion of the Terrance B. Lettsome International Airport, according to Premier Natalio “Sowande” Wheatley.
In an exclusive interview with the Beacon, Mr. Wheatley said the option is being considered along with public-private partnerships and other funding mechanisms to finally allow take-off for the controversial project.
“Very soon our sovereign rating will be revealed, and when that comes out we will see what the rating is,” he told the Beacon on Jan. 15. “And there is a possibility, of course, that we can issue government bonds. But, of course, that idea is a means of raising the capital to fund the actual airport.”
Asked about the viability of the proposed expansion — which has drawn bids ranging from about $150 million to $400 million in tender processes launched over the past decade — Mr. Wheatley noted that more information will be included in the business case that government expects to receive next month from consultant KPMG (BVI) Limited.
“The business case should be coming out soon with that information,” he said. “But we believe that extending the runway will be viable. We have had up to six [daily direct Miami] flights from American Airlines, so there is definitely demand there coming to the territory.”
The premier added that the Virgin Islands would get a major economic boost from increased connectivity.
“It’s very expensive getting here, because, of course, when ever you have to make connections, it’s expensive,” he said. “A direct flight will be so much more cost-effective.”
Mr. Wheatley said he did not yet have a ballpark figure for the cost of the expansion, but he referred again to the forthcoming KMPG business case.
“The good news is it’s coming out very soon,” he added.
Trellis Bay
The premier also said that the expansion’s potential impact on Trellis Bay remains a major consideration.
“Trellis Bay is very important to us culturally, historically and economically,” he said. “So we don’t want to interrupt what’s taking place in Trellis Bay at all. It’s non-negotiable: We are making sure Trellis Bay remains open.”
Mr. Wheatley added that recent discussions about a long-delayed national tourism plan — which is set to be completed by October — highlighted the need for the airport expansion.
“I think it’s well accepted in the tourism industry that we have to make it easier to get here,” the premier said.
Project history
Mr. Wheatley and his predecessors have argued that a major airport expansion is urgently needed to attract larger aircraft that can foster direct connections to the United States mainland and beyond, in turn increasing tourist traffic and revenue to the territory.
But detractors have questioned whether the expansion will bring the direct flights that VI leaders promise. And even if it does, they have said, a longer runway could adversely affect the existing tourism product by bringing more visitors than the territory can properly accommodate.
Such issues were debated again when government held public meetings on the project last November.
But without a comprehensive business case in the public domain — and without a national plan to guide tourism decisions — both sides continued to rely largely on speculation to make their arguments.
In November, meeting attendees heard that three expansion options were on the table: lengthening the 4,646-foot runway to either 6,300, 6,500 or 7,000 feet. The option of retaining the status quo was also raised.
