Government confirms over US$66M in new borrowing for airport upgrade and budget support 

By S.Browne. Updated 7:13 p.m., Thursday, July 2, 2026, Atlantic Standard Time (GMT-4).

The Government has confirmed that it has contracted two new loans since January 2026 totalling approximately US$66.7 million for infrastructure development and budget support.

Responding in Parliament on July 2, 2026, Prime Minister and Minister of Finance, Dr Godwin Friday, said, “Since January 2026, two loans were contracted by this government.”

Dr Friday said the first facility is a Caribbean Development Bank loan worth US$46.7 million to finance the rehabilitation of the Canouan Airport.

He told the House the airport runway is in a deteriorated condition.

“The runway has structural problems, cracking, potholes, depressions, surface raveling and cumulative weather related damage,” Dr Friday said.

He added that the current condition limits aviation operations.

“The runway condition limits the size and type of aircraft that can operate at the facility, which constrains both commercial and private aviation access,” he said.

Dr Friday said the rehabilitation works are intended to expand capacity and improve regional connectivity.

“Upgrading the runway will enable operations by larger, more modern aircraft like the Airbus A320, improving direct air connectivity to major international hubs,” he said.

The project includes runway rehabilitation, drainage and lighting improvements, coastal protection works, and new firefighting and air traffic control facilities.

Dr Friday told Parliament, “The main civil works components are rehabilitation of approximately 130,860 square metres of runway, retrofitting of coastal protection infrastructure, construction of a temporary firefighting facility, and an air traffic control tower.”

He said the loan negotiations had begun under the previous administration and were completed by the current Government.

“This loan, which was under negotiations when we got in office, was finalised by my government,” Dr Friday said.

He confirmed that the Caribbean Development Bank loan carries a 5 percent interest rate, a 21 year maturity period, and a three year grace period, with repayment beginning in January 2028. A grant component of US$125,000 was also included.

Dr Friday also confirmed a second facility, a Disaster Risk Management Development Policy Loan from the OPEC Fund for International Development worth US$20 million.

He said, “This is a budget support loan given on highly concessional terms, anchored on strengthening resilience through regulatory disaster risk management and adaptation actions, and resilient fiscal management and transparency.”

Dr Friday explained that the loan was part of a repurposed arrangement from an earlier financing agreement.

“Ultimately, they agreed only to repurpose US$20 million of that amount,” he said.

Outlining the terms, Dr Friday stated, “The amount is US$20 million, the interest rate is 1.25 percent, the maturity period is 21 years with a five year grace period, and repayment commences on 15 May 2031.”

Dr Friday said the financing supports resilience building and fiscal reform priorities. “This is something we are committed to,” he said.

END