TORTOLA, British Virgin Islands, CMC – Premier Dr Natalio Wheatley has asked the United Kingdom to exempt the territory from sanctions to breach its debt ratios as part of plans to expand the Terrance B Lettsome International Airport.
Wheatley recently confirmed that he has written to the UK government seeking clarity and support for the multimillion-dollar project, which aims to boost the territory’s economic development and tourism potential.
“As it pertains to what we hope to be supported on by the United Kingdom government, I’ve written to the United Kingdom government, and one of the matters that I’ve raised with them initially, as it pertains to support for the airport expansion, has to do with ratios,” Wheatley stated.
He explained that the runway extension would cost “several hundreds of millions of dollars,” which would put the territory beyond its permitted borrowing thresholds.
“Based on our ratios, we would fall outside of our ratios as it pertains to debt. So one thing that we are seeking from the United Kingdom is confirmation that those won’t be considered a breach of the ratios,” he explained.
The BVI’s borrowing limits are governed by the Protocols for Effective Financial Management, an agreement between the UK and the territory that sets strict fiscal rules, including debt-to-revenue ratios. The arrangement requires approval from the UK’s Foreign, Commonwealth and Development Office (FCDO) for large public sector loans or guarantees.
Wheatley said discussions are ongoing with the UK about how these protocols affect the Virgin Islands’ capacity to fund major infrastructure.
“We are engaged with the United Kingdom as well, as it pertains to the protocols for effective financial management and how they affect our ability to be able to engage in economic development as we seek to expand our economy,” he added.
The Premier did not disclose a specific timeline for the airport project or the source of financing. However, he recently met with potential investors in ports and infrastructure while in the UK.
The airport expansion has been a long-standing goal of successive governments to accommodate direct international flights and larger aircraft. Still, it has faced repeated delays due to financing constraints and concerns about the impact on public debt.
The Ministry of Finance has not yet announced how the exemption request will be assessed or whether the UK will grant approval.
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