June 2004 is the deadline date for the completion of the extension to Wallblake Airport and for the improved facility to be up and running. Previously it was estimated that the work should be completed by March. The new and more realistic date follows the recent discussions in London held by a three-man Anguillian delegation with British Government officials and the consultants for the project. Three of the delegates Kenn Banks, Marcel Fahie and Fritz Smith reported at a press briefing Tuesday that the talks went well and that the airport project was on course with a total agreed length of 6,000 feet. The process of prequalification of contractors for the civil works and the issuing of tender notices is now being stepped up for early implementation.

The work at the airport is to be carried out by three separate contracts, the main one being the extension of the runway, lighting and road diversion; and the others are the equipping of the Control Tower and improvements to the Terminal Building and fire tender services area. The building works will be contracted out locally. As plans for the extension of the airport continue, compensation and resettlement arrangements for residents in the area are almost finalised with negotiations to be completed with one property owner to the east of the airport. Eight houses are under construction, two more are to begin shortly and a further eight are to be constructed to the west, south and north of the airport. Those at the latter two locations are however to be held back until in January as they will not be in the immediate area of development.

Marcel Fahie, speaking on the funding for the airport project, said it involved counterpart financing requirements to be met by the Anguilla Government and grant and loan financing from donors including banking institutions. The Government is to find the funds for land acquisition and resettlement as an equity input into the project. “The main source from which the Government will generate funds to meet the cost of the land acquisition resettlement is the divestment of some of its shares in the Anguilla Electricity Company (ANGLEC),” Fahie said.

He reported that the process to sell to the public six million of the Government’s shares in ANGLEC was now underway and that the shareholders of the company had recently authorised the initial offering of the shares at a price $2.50 per share. The three-week subscription period will begin on July 28 and will close on August 22. Thereafter the allotment of shares will be made and the funds generated by the sales will be turned over to Government after all the expenses of the offering have been covered.

When that is completed the Government will be in a position to meet the costs compensation for resettlement. It is expected that some additional funds will be raised in 2004 from local revenue to complete the total cost of the land acquisition and compensation. The full cost of the acquisition and compensation is estimated at 5.5 million US dollars, an increase from the original estimate of 3.5 to 4 million although it is likely to be less.

Mr. Fahie went on: “That would leave about 15 million dollars to be raised to fund the rest of the project. The overall estimate, based on the talks we have had in the UK, is for the project to take 20 million US dollars or at the most 20 and a half million to build. That includes about at least ten percent for contingencies and so on. Of the 14 and a half to 15 million additional, the British Government is providing the cost of the consultants estimated at roughly 1.2 million. Beyond that the Government will need to raise in the region of 13-14 million dollars in loans to finance the airport. By the time that we get to the final detailed estimates which the consultants will be now producing over the next six weeks or so, on the low end we may only be required to borrow about 12 and a half million; and at the upper end we are looking at 14 to 15 and a half million. The proposal to finance the loans is to split the loans into long-term borrowing.

According to him the Anguilla Government is hoping that the eight million Euros or nine million US dollars due to Anguilla from the European Commission would be made available in budgetary aid or be directed to a project. This would enable the Government to apply a substantial amount of the money to the airport project as it is released. Mr. Fahie also spoke about four other sources for short and long term borrowing with rates of interest ranging from 7 percent over 15 years to 7.5 percent over the same period. He stated that there were other options being examined by the Ministry of Finance for financing of the airport.

“We have made clear to the officials that the project is going to happen anyhow,” Fahie told reporters. “It is not a question if the grant is available from the European Commission as budgetary aid; but whether or not because the project is so vital to the continued forward movement of the Anguillian economy and society we cannot afford not to do it. So they will work with us in such an event to agree on an alternative financing package.”

L-R: Marcel Fahie, Kenn Banks and Fritz Smith

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