The two completed parts of the ongoing business case for the Terrance B. Lettsome International Airport expansion will remain private for now, according to Premier Natalio “Sowande” Wheatley.
“The draft business case is not a public document at this stage,” he said last Thursday in response to a question from opposition member Marlon Penn in the House of Assembly. “It will only be made public once it has been laid on the table of this honourable House or published in the official Gazette.”
When Mr. Penn (R-D8) asked when that would happen, Mr. Wheatley said, “I can’t give a specific timeline.”
He added that he has been speaking with Communications and Works Minister Kye Rymer “about getting that Cabinet paper into Cabinet this month.”
He also said that he wants the draft business case to move forward swiftly.
“I’ve been emphasising to every agency who’s playing a part and playing a role that time is moving quickly and this is a priority project for the government, and we want to see it move forward quickly,” he said.
Mr. Wheatley also assured Mr. Penn that stakeholders will be kept adequately informed about the project.
“I agree completely with [Mr. Penn] that we have to ensure that once we have gotten to the next stage that we inform all the stakeholders and have a conversation with the stakeholders — especially about the options moving forward: the length of the runway; how much it’s going to cost; what is the disruption that is going to take place to the stakeholders in the area; what is the plan, you know,” he said. “And I can appreciate the fact that persons need to know answers to these questions and would be very unsettled until they had the answers.”
Past controversy
Controversy has surrounded the project since it was proposed nearly 15 years ago by then-premier Dr. Orlando Smith’s administration.
Dr. Smith and his successors — including Mr. Wheatley — 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 — in addition to causing environmental and social issues.
But without a comprehensive business case in the public domain — and without a national plan to guide tourism decisions — both sides have relied largely on speculation to make their arguments.
KPMG contract
In February 2024, officials announced that consultant KPMG (BVI) Limited had received a $209,089 contract to carry out a five-part business case after it beat out seven other companies in a tender process.
At the time, officials said the business case would be designed in part to meet the government’s obligations under a 2012 agreement the Virgin Islands signed with the United Kingdom to promote fiscal stability and transparency.
That agreement — the Protocols for Effective Financial Management — requires government to complete and publish a business case and “robust” cost-benefit analysis before the procurement stage of any major capital project.
When the KPMG contract was announced in February 2024, the BVI Airports Authority said the business case should be complete in three months. But that didn’t happen as planned.
Last November, officials announced the completion of a “Strategic Outline Case” they described as the first part of the five-part business case. But they did not release it, explaining that the business case would be released when it is fully completed.
Last month, the secrecy continued after officials announced the completion of the second part of the study, called the “Outline Business Case.”
Decision made
Nevertheless, Mr. Rymer (RD5) suggested at the time that the government is likely to follow a business case recommendation to proceed with a public-private partnership that could see construction start in 2027 and finish in 2032.
“The economic rationale for this project has been meticulously evaluated,” Mr. Rymer said at the time. “The Outline Business Case confirms that the preferred option, which includes extending the runway and expanding the apron, offers the most favourable economic return among the shortlisted alternatives.”
Mr. Rymer also said last month that the Outline Business Case was not a final investment decision but a step toward securing Cabinet approval to proceed.
For the next steps, he said, Cabinet will need to green-light the procurement of a development partner and provide a “notional commitment” to “future funding phases.”
Then the government will need to secure the necessary approvals from the UK Foreign, Commonwealth and Development Office under the territory’s fiscal governance framework, according to the minister.
“Upon receiving these approvals, the next milestones will include finalisation of the airport master plan; completion of the Environmental Impact Assessment and other regulatory clearances; issuance of the request for proposals; and submission of the full business case,” he said.
Expansion options
Last Thursday in the House of Assembly, Mr. Penn also asked for an update on the project plans.
“Which of the proposed expansion options presented at the public meetings is the government in favour of and will they come back to the public before a decision is made?” he asked.
In his response, Mr. Wheatley said the outline business case “proposes an option for a 7,000- foot runway, which is based on the statement of requirements outlined in the approved strategic case as well as other critical considerations including safety requirements and communications from airline carriers.”
He did not mention any of the other options in his statement, and Mr. Penn did not follow up on the matter.
Mr. Wheatley also explained that an environmental impact assessment will be completed before the expansion option is chosen.
The Communications and Works Ministry and the BVI Airports Authority, he added, are working together to “develop the terms of reference for the tender.”
When Mr. Penn asked about “options for financing and development,” Mr. Wheatley remained vague.
“Various options for funding and development are currently being carefully explored to ensure the most effective and sustainable approach,” he replied.
Public-private partnerships
Last month, however, Mr. Rymer said the government is considering public-private partnerships to fund the project.
“A mixed public-private financing structure is proposed, with risks appropriately allocated and value for money prioritised,” Mr. Rymer said during a May 8 HOA meeting. “The Outline Business Case suggests a modest increase in passenger fees — comparable to regional peers — to support ongoing ‘availability payments’ under a public-private partnership model.”
Mr. Wheatley previously told the Beacon in a February interview that his government is considering funding the project through government bonds.
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