The signing of a US $72 million grant agreement between St. Maarten and the World Bank (see related story) for the reconstruction of Princess Juliana International Airport (PJIA) is no doubt very welcome. It’s also long-awaited, as the recent change in government caused some delay due primarily to concerns among existing bondholders that were recently addressed in a motion unanimously adopted by Parliament. Some suggested the incoming coalition did not want the outgoing cabinet to take credit, but important is that in the end the deal got done.
The money is coming from the Dutch-sponsored Trust Fund and will be borrowed from government by PJIA. It has been complemented with a US $50 million loan from the European Investment Bank (EIB) and $7 million from the airport’s own revenues.
The terminal will be restored to its pre-Hurricane Irma capacity of 2.5 million travellers annually but also “built back better” to make it more resistant to extreme weather events. The sooner this crucial project for the local tourism economy can start obviously the better, but it realistically it won’t be completed until at least the end of 2021.
That means the destination will have to do with the current facility for
another two years, while air arrivals are expected to reach 80 per cent of pre-Irma levels over 2020. The good news is that the work is to be executed in phases, with improvements including expanding available space where possible along the way.
A lot clearly remains to be done, as the tendering process can only now begin. However, there is finally some light at the end of what seemed an almost endless tunnel.
