by Eulana Weekes
St. Kitts and Nevis (WINN): The financing of the Vance W Amory International Airport project in Nevis was one of the significant points of discussion at a Public Consultation held in Gingerland, Nevis on November 14, 2024. More than US 47 million dollars has been estimated for the project, including land acquisition.
As presented on screen at the public consultation by an expert on the project- Mr Dan Casal, the construction of the expanded runway operation and hangar facility has an estimated cost of USD 24,540,475.00. It includes general site cleaning, demolitions and disposals, excavation, embankment, profiling and levelling, hydraulic concrete, asphalt, construction for power, communications etc, an airfield lighting system and a hangar. The embankment process is the highest contributor to the cost, estimated at USD 7,200,000.00. The hangar facility has an estimated cost of USD 2,550,000.00.
The estimated cost of other airport facilities, such as the fire station, fuel farm, main road realignment, passenger terminal expansion, and cargo facility, is USD 12,200,000.00.
With soft costs estimated at USD 720,800.00, the total construction and soft costs phase is US 37,461,275.00.
Meanwhile, to allow for the airport’s expansion, the Nevis Island Administration negotiated with owners that have properties close to the airport to settle land purchase agreements. The estimated cost for land acquisition is USD 10,963,337.00.
Member of the Opposition and Leader of the Nevis Reformation Party, Dr Janice Daniel Hodge, questioned the cost estimates and sought to ascertain how the project would be funded.
Mr Alexis Jeffers, Special Advisor to the Premier of Nevis on Investment, responded. He said the process surrounding the airport is being carried out in stages, adding that the financial aspect, which includes payment to property owners, will come in the next phase to be communicated to the public.
“We’re finalising the details on that, and that will be made public. It is something that is not going to be a secret when it’s all said and done. The Ministry of Finance has that responsibility.”
Jeffers further expressed, “It would be unwise of us to say that it will be financed by the Bank of Nevis when in truth and in fact nothing is there to divulge at this time.”
He added, “The details regarding the finances will be available at the next step when we get there, but you cannot be divulging things before you get to that point in time. A concept has been presented on various projects in Nevis and never got to the next stage, but we are saying we are not that. We have this particular stage we are at. In the next stage now, we’ll be able to divulge the financing side of it and also the payments to the various property owners who will be impacted. They are already aware because we have had offers made and acceptance made from those land owners and property owners. So, the next stage now is to pay those property owners. So we have already engaged them in writing and also received an agreement back from [them]– well, an acceptance back from them.”
The operating cost and projected returns on investment for year one were also declared at the public consultation.
In his presentation, Mr Casal revealed that the total operations and maintenance cost for year one is estimated at USD 4,385,000. This includes airport management salaries, employee salaries, operations management, boards and professional Services, subcontractors, and other costs such as airfield sweeping, parking, and road maintenance.
Additionally, Commercial Revenue sources, including concessions, cargo services, parking, and ground transportation, are estimated to provide revenue of up to USD 303,000.00. Commercial aeronautical revenue is estimated at USD 4,032,339.80, and general aviation revenue is estimated at USD 1,504,960.00.
Mr Casal informed the public that the revenue projections for the airport put it in a capable position for the authorities to repay the loan.
Casal stated, “So the sum of this revenue for the airport tells us that this airport is capable of repaying the loan, depending on the agreement of that loan and the length of that loan, but there was a super average of around $2 million in the first year, and the second year is supposed to grow 30% more, according to international figures, the third year 15%, until the fifth year, in which we’ll just adapt to the regional numbers of development.”
The Premier of Nevis, Mark Brantley, announced to the public that he reached out to the Prime Minister of St. Kitts and Nevis, Dr Terrance Drew, to assist with funding for the Vance W Amory International Airport expansion project. No confirmation had been given about the amount. There was also notice that Israeli billionaire Patrick Drahi would be investing in the project.
Meanwhile, Jeffers regards the airport’s expansion not just as a development of a first-class air facility but as an investment with significant benefits.
“Now, this development is an investment in, of course, the infrastructure itself at the Vance Amory International Airport, but it’s more than that. It’s an investment in the island of Nevis, an investment in our tourism product, an investment in job opportunities and, of course, there are a slew of investments that will spring or will be born out of this particular development. So, that being said, we believe that this particular project is one that is needed by the island of Nevis and, indeed, we are committed as an administration, that is, the CCM-led Nevis Island Administration, to bring this project to fruition so that all of the benefits can be derived.”
