Statement
Statement By Minister For Communications And Works
Honourable Kye M. Rymer
At The Twentieth Sitting Of The First Session
Ofthe Fifth House Of Assembly Of The Virgin Islands
On Airport Runway Expansion Project
FRIDAY 18th OCTOBER 2024
Madam Speaker, I rise to provide an update on the progress of the airport runway expansion project, a critical initiative aimed at enhancing our aviation infrastructure to support the future growth and prosperity of the Virgin Islands.
This project is being developed using the United Kingdom (UK) Government's, HM Treasury 5 Case Model, a structured approach that ensures all critical aspects of large-scale infrastructure projects are thoroughly assessed. Central to this process is the Outline Business Case (OBC), which meticulously evaluates the feasibility and desirability of the project across five key dimensions: strategic, economic, commercial, financial, and managerial cases.
The OBC establishes the need for the project, ensuring alignment with broader government national priorities as defined in the National Sustainable Development Plan. It evaluates the economic benefits through a comprehensive cost-benefit analysis, guaranteeing value for money. Additionally, it assesses the commercial viability, examining financing options and procurement strategies. The financial implications for our government are also scrutinised, detailing funding sources and budget requirements. Finally, the OBC outlines how the project will be managed, addressing governance, risk management, and timelines.
I am pleased to report that we have successfully completed the Strategic Outline Case (SOC), which has been approved by the Cabinet on 18th September 2024. This document outlines the strategic objectives of the airport development, highlighting the necessity of the project while addressing potential risks and challenges. This approval marks a key milestone, paving the way for the detailed analysis and planning that lies ahead.
As we move into the next phase, KPMG, our engaged consultant, will lead stakeholder consultations towards the end of this month, October into the first week of November 2024. These discussions will ensure that the airport’s development, meets the needs of our local community, businesses, and the broader aviation industry. Stakeholder input is invaluable, and we are committed to fostering an inclusive dialogue throughout this process. We encourage the public and all stakeholder to participate fully in the consultations arranged for their particular sector.
Oversight of the project is being provided by a dedicated steering committee, which is vital for ensuring proper governance, transparency, and timely delivery. This committee will continue to monitor progress, manage risks, and ensure alignment with our territory’s broader goals.
In tandem with the OBC development, the BVI Airport Authority is also updating the airport master plan. This comprehensive blueprint will guide the long-term development of our airport infrastructure, encompassing terminal modernisation, runway expansion, and the enhancement of support facilities. It is designed to ensure that our airport can accommodate future growth in air traffic.
Additionally, BVIAA is conducting an air traffic forecast to provide critical data on future travel demand, including passenger, tourism, and cargo projections. This data, along with the updated master plan, will inform the OBC, ensuring that our airport development is based on sound data and growth projections.
Through this structured and strategic approach—combining thorough evaluation, stakeholder engagement, and data-driven forecasting—we aim to create a modernised airport that not only meets the immediate needs of our community but also supports the long-term economic and social aspirations of the Virgin Islands.
Thank you for your attention, and I look forward to keeping this House informed as we advance this vital project.
