The government of St. Vincent and the Grenadines has secured a significant loan from the Caribbean Development Bank (CDB) to initiate the comprehensive rehabilitation and upgrade of the Canouan Airport.
This strategic project is designed to address “dire” structural issues, including runway cracking, potholes, depressions, and surface raveling that have been exacerbated by cumulative weather damage.
The primary goal of the modernization is to expand the facility’s capacity, enabling it to handle larger and more modern aircraft such as the Airbus A320.
Currently, the runway’s deteriorating condition limits the size and type of aircraft that can safely operate there, which constrains both commercial and private aviation access. Once completed, the upgraded airport will be capable of supporting planes with a passenger capacity of up to 180 persons, significantly improving direct air connectivity to major international hubs and strengthening regional transport resilience.
The rehabilitation effort consists of four main civil works components:
- Runway Rehabilitation: The project involves the rehabilitation of approximately 1,350,860 meters of runway, including necessary improvements to associated drainage and runway lighting.
- Coastal Protection: The existing coastal protection infrastructure will be retrofitted to enhance the airport’s resilience against environmental threats.
- Safety Facilities: A new rescue and firefighting facility will be constructed following the use of a temporary structure and the demolition of the old building.
- Traffic Control: The project includes the construction of a new air traffic control tower to support the airport’s upgraded operational capabilities.
The Canouan Airport Rehabilitation project is primarily funded through a Caribbean Development Bank (CDB) loan. According to the sources, the specific amount of this loan is $46,715,100. The financing agreement includes an interest rate of 5% and a maturity period of 21 years.
Key details regarding the loan repayment and additional funding include:
- A three-year grace period was established, with quarterly repayments scheduled to begin on January 1, 2028.
- The loan agreement was officially signed on March 18, 2026, after the government met the necessary conditions for disbursement.
- In addition to the main loan, the project received a grant of $125,000 from the Caribbean Development Bank as a component of the total financing package.
While negotiations for this project began under the previous ULP administration, the current government finalised the agreement after successfully completing the required conditions for disbursement.