BVI Financial Secretary highlights airport expansion for economic growth

British Virgin Islands Financial Secretary Jeremiah Frett has underscored the critical importance of the long-planned expansion of Terrance B Lettsome International Airport for the territory's economic development. Frett, who also serves on the BVI Airports Authority Board, stressed the urgent need to transition from prolonged consultation to concrete implementation, asserting that the airport directly fuels the BVI's economy. The project aims not only to boost tourism but also to support vital sectors like financial services and enhance travel convenience for residents, highlighting its multifaceted economic and social benefits.

The BVI government has dedicated years to evaluating various expansion proposals for Terrance B Lettsome International Airport. Cabinet has reportedly approved a business case prepared in accordance with UK Green Book standards, with a 7,000-foot runway identified as the preferred option. This extended runway is deemed essential to significantly improve airlift capacity, accommodate larger commercial aircraft, and facilitate direct flights from major international hubs, which are currently unfeasible. Such enhancements are crucial for meeting the future aviation demands of the territory and unlocking new opportunities for connectivity.

Frett articulated that the airport expansion would directly stimulate increased investment and business activity across the British Virgin Islands. He anticipates that improved air access will attract greater foreign direct investment and encourage local entrepreneurs to invest in the hospitality sector, including hotels and boutique accommodations, thereby fostering broader economic growth. The project's scope, however, necessitates navigating several stages, including detailed design, a comprehensive full business case, and final approval from the United Kingdom.

Financing a project of this magnitude presents significant challenges, as it would likely exceed the British Virgin Islands' current borrowing limits, requiring special consideration and approval from the UK. Frett outlined various financing avenues under review, including traditional loans, public-private partnerships (PPPs), or the issuance of bonds leveraging the territory's investment-grade sovereign rating, potentially through a hybrid model. Despite the complexities, Frett conveyed a clear message that the time for further public consultation has passed, advocating for immediate action on this long-discussed infrastructure priority.

The airport upgrade stands as one of the most significant infrastructure initiatives for the BVI government, which continues to engage in negotiations with UK officials regarding borrowing ratios and capital investment. Frett's insistence on moving forward reflects a widespread sentiment that the expansion is not merely an aspiration but a fundamental requirement for the British Virgin Islands to realize its full economic potential and secure its future as a competitive Caribbean destination.