Wheatley said the UK has indicated support for the airport expansion in principle but remains cautious over contingent liability...
The Virgin Islands government is moving ahead with an initial phase of the long-awaited expansion of the Terrance B. Lettsome International Airport, despite the United Kingdom yet to approve the full project expected to cost more than $400 million.
Premier and Minister of Finance Hon. Dr Natalio Wheatley disclosed that the Ministry of Communications and Works will soon issue a Request for Proposal (RFP) for works to extend the western end of the runway by approximately 700 feet. The extension is intended to improve operations and allow aircraft, including those used by American Airlines, to take off more safely.
“The Minister of Communications and Works [Kye Rymer] who is responsible for the airports is very soon going to be requesting a Request for Proposal to do a phase of the project. A phase of the project that would allow American Airlines to take off safely by adding, I think, about 700 more feet to the west. And that's going to be coming out soon,” he said at a public meeting last evening on Virgin Gorda.
The Premier did not disclose how this phase of the expansion will be financed.
The move comes as the broader airport expansion project remains under review by the UK government. In 2025, Cabinet approved plans to extend the airport runway to 7,000 feet by 2027, with the aim of accommodating larger aircraft and enabling direct international flights from North America and Europe.
However, Wheatley explained that because the project exceeds $400 million, it requires UK approval under financial protocols governing the Territory. He said the Virgin Islands is subject to borrowing and debt restrictions based on recurrent revenue rather than Gross Domestic Product (GDP), creating tighter limits on major infrastructure projects.
“Our GDP is about $1.6 to $1.7 billion, while recurrent revenue is just over $400 million, so that is a big difference,” Wheatley explained.
According to the Premier, the government has spent millions of dollars over the past 16 years pursuing studies and planning for an airport extension. A business case was prepared by KPMG, but UK authorities requested additional information and further studies before making a decision.
Wheatley said the UK has indicated support for the airport expansion in principle but remains cautious over contingent liability, the risk that Britain could ultimately become financially responsible if the project fails to generate expected returns or encounters major setbacks.
He pointed to the experience of St Helena Airport as a possible factor behind the UK’s caution. The airport, funded by the UK government at a cost exceeding £280 million, faced major operational challenges after opening, including wind conditions that initially restricted commercial flights, leading to criticism over costs and value for money.
“And if you remember St Helena, there was a whole fiasco as it pertained to their airport and the UK was left holding the bag,” Wheatley said. “I think that is perhaps influencing the great caution they have in approving our extension.”
Despite the delay in securing approval for the wider project, the government appears prepared to advance smaller phases of the airport upgrade while discussions with the UK continue.
Premier and Minister of Finance Hon. Dr Natalio Wheatley disclosed that the Ministry of Communications and Works will soon issue a Request for Proposal (RFP) for works to extend the western end of the runway by approximately 700 feet. The extension is intended to improve operations and allow aircraft, including those used by American Airlines, to take off more safely.
“The Minister of Communications and Works [Kye Rymer] who is responsible for the airports is very soon going to be requesting a Request for Proposal to do a phase of the project. A phase of the project that would allow American Airlines to take off safely by adding, I think, about 700 more feet to the west. And that's going to be coming out soon,” he said at a public meeting last evening on Virgin Gorda.
The Premier did not disclose how this phase of the expansion will be financed.
The move comes as the broader airport expansion project remains under review by the UK government. In 2025, Cabinet approved plans to extend the airport runway to 7,000 feet by 2027, with the aim of accommodating larger aircraft and enabling direct international flights from North America and Europe.
However, Wheatley explained that because the project exceeds $400 million, it requires UK approval under financial protocols governing the Territory. He said the Virgin Islands is subject to borrowing and debt restrictions based on recurrent revenue rather than Gross Domestic Product (GDP), creating tighter limits on major infrastructure projects.
“Our GDP is about $1.6 to $1.7 billion, while recurrent revenue is just over $400 million, so that is a big difference,” Wheatley explained.
According to the Premier, the government has spent millions of dollars over the past 16 years pursuing studies and planning for an airport extension. A business case was prepared by KPMG, but UK authorities requested additional information and further studies before making a decision.
Wheatley said the UK has indicated support for the airport expansion in principle but remains cautious over contingent liability, the risk that Britain could ultimately become financially responsible if the project fails to generate expected returns or encounters major setbacks.
He pointed to the experience of St Helena Airport as a possible factor behind the UK’s caution. The airport, funded by the UK government at a cost exceeding £280 million, faced major operational challenges after opening, including wind conditions that initially restricted commercial flights, leading to criticism over costs and value for money.
“And if you remember St Helena, there was a whole fiasco as it pertained to their airport and the UK was left holding the bag,” Wheatley said. “I think that is perhaps influencing the great caution they have in approving our extension.”
Despite the delay in securing approval for the wider project, the government appears prepared to advance smaller phases of the airport upgrade while discussions with the UK continue.
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