VIports consortium selected for P3 project in US Virgin Islands; a microcosm of US demand and supply

There is a continuing need for airports across the Caribbean to seek private capital. All too often airports there exist primarily to service business and government travel needs, along with those of financially well endowed private citizens, and also to handle what tourist trade there is (which can vary enormously from being the major GDP element to virtually zero). Infrastructure can be basic and old - and governments loath to invest in it.

Along with the situation in the rest of the world, airport privatisation has dwindled during and after the COVID-19 pandemic, with some deals left hanging in the air.

Now, one has been completed, which will see an international/local consortium developing the two main airports in the US Virgin Islands (US VI) on a 40-year contract.

Ironically, this becomes only the third successful deal in the US under the airport privatisation programme, which began in 1996. The first one went back to the public sector after seven years, while the second one was, like this, also in an unincorporated territory, namely Puerto Rico, which is no distance from the Virgin Islands - in fact, right next door.

It seems that the US must look to its remote islands to take the lead in these matters, but also that there is still some life left in the programme, even if it is on life support.

This deal helps the Tourist Board's claim that 'big things' are coming the US VI's way but one must be realistic. Route development will remain within a fairly restricted area for some time yet.