Government officials contend that the existing airport needs to be expanded to bring in direct flights from the United States mainland.

More than two years have passed since Deputy Premier Dr. Kedrick Pickering announced at a public forum in East End that the expansion of the Terrance B. Lettsome International Airport was a “done deal.”

Government officials contend that the existing airport needs to be expanded to bring in direct flights from the United States mainland.
Details disclosed in subsequent months described the project as a $38 million 2,500-foot runway extension to be built on elevated piles. Government was to fund and operate the massive capital project, which promised to be the largest in Virgin Islands history.

But in a statement made before the House of Assembly Tuesday morning, Dr. Pickering indicated that high public debt levels have forced a drastic change: As a next step, the airport project likely will be developed, financed and operated by a private firm in a concession awarded by the government.

“The current debt position of the BVI government renders a traditional financing option as not preferable due to the high debt service and outstanding debt levels,” Dr. Pickering said.

Though the cost was initially estimated at $38 million, that figure grew to at least $370 million as the project’s scope widened.

But Dr. Pickering said Tuesday that this scope has since been narrowed again: New bids solely for the runway expansion portion of the project were received in May, and range from $154 million to $194 million.

 

See the July 24, 2014 edition for full coverage.

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