Airport redevelopment project shows positive signs
The long-awaited airport development project, which will see the expansion of the Terrance B. Lettsome International Airport is showing positive signs, as the government has awarded KPMG (BVI) Ltd the contract to undertake works related to the project.
KPMG will be aiming to complete the business case for the airport’s development within the next three months. The government said this is a crucial phase that aligns with the UK’s five-case model, and will ensure a comprehensive and strategic approach to airport development.
The UK is offering technical support on the project, which successive governments have promised but have failed to deliver.
Minister of Communications and Works Kye Rymer, expressed his enthusiasm for the project reaching this pivotal stage. He also underscored the importance of adherence to the government’s Protocols for Effective Financial Management throughout the process, and reinforced his commitment to transparency, accountability, and ensuring the best use of resources for the benefit of the British Virgin Islands.
“I am well pleased to know that we have persisted and have finally arrived at the stage where we can engage the services of a qualified contractor to chart the way forward with the airport development,” Rymer said.
He said due process was followed in contracting KPMG in order to ensure improved accountability in public sector operations.
Chairman of the BVI Airports Authority Board,Theodore Burke, echoed the minister’s sentiments and stated that his team is committed to a seamless and transparent process which aligns with the government’s financial management protocols.
Mr. Burke said, “We are dedicated to ensuring that every step taken in this project reflects our responsibility to the public we serve. The Board will continue to champion this project until it is brought to fruition.”
Meanwhile, Managing Director of the BVIAA Kurt Menal highlighted the wealth of information already available to facilitate the process. He said “Our team at the Authority is armed with a wealth of information gleaned from various studies undertaken previously. This source of knowledge serves as a robust foundation for informed decision-making throughout the development process.”
Successive BVI administrations have come under fire for the lack of development of the territory’s airport facilities. It is believed a modern airport will improve airlift and also enhance the product of the local financial services industry. Those cries reached a peak last year after the Natalio Wheatley administration inked a deal with American Airlines, which now flies directly from Miami to the BVI.
Since then, residents and elected leaders have put increased pressure on the government to improve the airport, saying the continued relationship with American Airlines and future carriers will depend on the territory’s ability to put the necessary infrastructural upgrades in place.
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A contract is awarded for this very same thing! NDP had that Trini ‘sweet talking’ guy here years ago and what happened? Nada; apart from enriching himself. Now what’s the awarded cost of the contract? More money wasting again….
Where is all this wealth of information, paid by the public purse that Mr.Menal refers to? As we saw after the passage of Irma, BVIs does not have much in the way of financial resources. So, if it goes ahead, BVI wll need financing. It won’t be cheap because of BVI’s records of cost overuns and exceeding budgets. A few years back, bids were received in the $ 200 million range. At 7% interest rates over 20 years that works out to a monthly note of about $ 1 million or $12 million per year. Where is tha money coming from? Departure tax? In 2020 there weere about 100,000 overnight visitors to the BVIs. Works out to about $120 each extra, on top of he $20 departure tax, $10 arrival tax. So, $ 150 extra per person. Expedia shows round trip tickets Miami to Beef for $1,200 (and up), so basically a 10-15% added tax to pay for airport expansion. Family of 4 would be out close to $6000 just to get here directly. And, that’s based on the last set of bids. You know it will probably be twice that much. Air fares to Beef will be comparable to what it costs to rent a villa for a week! Meanwhile, it’s not too difficult to get round trip tickets to Miami from STT for $ 400. Factor in ferry tickets, taxis etc, and a family of four can get here for less than $ 2,000. So, back to the question: how does the airport pay for itself? KPMG is supposed to tell us this, but how much spin will they put? And, will the public have access to their report?
Thank you for doing the very simple, but to the local politicians, inscrutable math. It’s clear that there’s an implicit decision that’s already been made to move forward with the project and this is just imposing the proverbial rubber stamp on its approval.
Rather unfortunate wording considering the board has no audited accounts for ten years , getting wealthier by the minute no doubt.
How can any company hope to put together a valid business case for airport expansion without the last 10 years of audited financials ?
Yesterday this site told us ” Wheatley revealed that …For instance, the last audited statement for the BVI Airports Authority dates back to 2014, while the BVI Ports Authority’s most recent report is from 2013.”
When they say shows positive signs, what do they mean. Maybe they have a pack of batteries and they looking at the positive sign on the battery.
BVIs does not have much in the way of financial resources.”
Wow, i didn’t know that!
Why then are the eagle eyes of the UK hovering above and sending down deadly bombs such as the COI?
Why are most of the highest paying jobs and positions of the territory and held by UK expats?
Are we seeing through the same prisms?
Many do not think so.
All parties, not just the BVI goverment, need a laxtaive.
There are to much disinformation and properganda being constantly circulating hidding truths, and sidelining accountability measures for all, not just some..
“The long-awaited airport development project, which will see the expansion of the Terrance B. Lettsome International Airport is showing positive signs, as the government has awarded KPMG (BVI) Ltd the contract to undertake works related to the project.
KPMG will be aiming to complete the business case for the airport’s development within the next three months.”
Notice that there is not even any mention of whether there will be any healthy skepticism brought to bear about its costs (and benefits). As noted above, poster “Insanity” did the math and yet nobody seems to even be discussing that aspect of things. Add the usual 20% (minimum) cost overruns and this will be another White Elephant that adds no value to the tourism industry.
Did KPMG tender for this? Is this another no-bid contract?
I’m sure the “Business Case” will take into account the environmental costs of expanding the airport . . .
Better practice your Chinese language skills. Yup, the folks who bring you crap products and wuhan flu going to get the contract to build this fiasco and will end up taking land when loan defaults and shoddy construction falls apart. They’ve done it all over the Caribbean and this banana republic gubmint too blind to see. Maybe need another party to celebrate giving away everything to the Chinese.