Cayman Islands to Redo Business Case for Private Jet Terminal Project

The Cabinet of the Cayman Islands has formally approved a plan to redo the Outline Business Case (OBC) for the proposed redevelopment of the General Aviation Terminal (GAT) at Owen Roberts International Airport (ORIA). The project, which caters to private jets, carries an estimated cost of CI$42 million and represents a key, yet controversial, component of the airport's long-term expansion plans.

This decision by the current National Coalition for Caymanians (NCFC) administration, which took office in May 2025, marks a significant re-evaluation of a major capital project advanced by its predecessor. The original OBC, conducted in 2022, was criticized for selecting the most expensive development option with limited public justification, fueling perceptions that the project would benefit a small number of high-net-worth individuals at a substantial public cost. The new business case is expected to explore more cost-effective alternatives for upgrading the facility.

Project Background and Political Context

The plan to revamp the GAT was initially pushed by the United People's Movement (UPM) administration, which in 2023 announced its intention to proceed with the CI$42 million project. The stated goal was to enhance the Cayman Islands' appeal to high-net-worth visitors and international business travelers, aligning with a broader strategy to bolster its status as a luxury tourism and financial hub.

However, the original 2022 OBC drew public scrutiny. It revealed that the government had chosen the highest-cost option among several proposals for the GAT's redevelopment. Critics argued that the business justification was weak, especially for a facility used by a very small percentage of the local population and transient visitors who spend minimal time in the terminal itself.

Since taking power, the NCFC government has been selectively advancing elements of the comprehensive airport master plan. While it has moved forward with other projects, including a CI$28 million runway expansion at ORIA, it has remained largely silent on the GAT redevelopment until now. This new directive to redo the OBC suggests a more cautious approach, potentially seeking an alternative that balances modernization with fiscal prudence. The decision comes after the Central Planning Authority approved a CI$1.2 million expansion of the apron for private jets in April 2025, an initial step in the broader GAT enhancement.

Strategic Importance and Industry Trends

The GAT project is a central element of the Cayman Islands Airports Authority (CIAA) 20-year master plan, designed to guide sustainable development and accommodate future aviation demand across the territory's three airports. According to a statement from Infrastructure Minister Jay Ebanks in January 2026, upgrading the GAT is a key strategic objective. "These investments support larger aircraft operations, improve aircraft movements on the ground, strengthen resilience and enhance Cayman's role as an international business and financial centre," he stated.

This aligns with a wider trend in Caribbean aviation, where jurisdictions are upgrading general aviation facilities to attract lucrative private jet traffic and high-net-worth tourism. The existing GAT at ORIA is considered by the government to be beyond its effective lifespan, potentially deterring growth in this sector. The Cayman Islands Airports Authority (CIAA) is responsible for overseeing these developments, which are regulated under the authority of the Civil Aviation Authority of the Cayman Islands (CAACI).

The challenge for the NCFC administration is to find a solution that meets these strategic goals without alienating a public concerned about the allocation of significant funds. Construction costs have likely increased since the initial CI$42 million estimate was formulated based on 2022 costings, adding further pressure to find a more economical path forward.

What Comes Next

With the approval to draft a new OBC, the CIAA will now begin the formal process of re-appraising the project. This will involve evaluating a range of options, from a full-scale new build to a more modest refurbishment and upgrade of the existing terminal. The new business case will need to provide a more robust justification for any proposed expenditure, outlining the expected economic returns and benefits to the Cayman Islands.

The timeline for the completion and review of the new OBC has not been publicly disclosed. It is possible the NCFC administration is looking for a revised plan that can deliver necessary upgrades at a lower price point, making it more politically and financially palatable.

Why This Matters

This re-evaluation of the Owen Roberts International Airport's private jet terminal highlights a critical tension in modern airport development. It pits the strategic ambition to attract high-value tourism and business against public demand for fiscal accountability. The decision by the Cayman Islands government signals a shift towards a more measured approach to large-scale infrastructure projects, reflecting the political risks of investing heavily in facilities that serve an exclusive clientele. The outcome will be a key indicator of the administration's infrastructure priorities and its ability to balance long-term economic strategy with public sentiment.

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