The Government of St. Vincent and the Grenadines has confirmed the contracting of two major loans since January 2026, totaling approximately US$66.7 million, to fund critical infrastructure and provide national budget support.
Speaking in Parliament, the Prime Minister detailed the two facilities: a US46.7 million loan from the Caribbean Development Bank (CDB)and a US20 million budget support loan from the OPEC Fund for International Development (OFID).
The largest portion of the new debt, the US$46.7 million CDB loan, is earmarked for the comprehensive rehabilitation and upgrade of the Canouan Airport. According to the Prime Minister, the airport is currently in “dire need” of repair, citing structural issues such as runway cracking, potholes, and surface raveling that currently limit the size of aircraft able to land at the facility.
The planned upgrades are intended to allow larger, modern aircraft, such as the Airbus A320, to operate at the airport, which officials believe will significantly enhance international connectivity. The scope of works includes:
- Rehabilitating over 1,300 meters of runway.
- Upgrading drainage and runway lighting.
- Retrofitting coastal protection infrastructure.
- Constructing a new air traffic control tower and firefighting facilities.
The CDB loan carries an interest rate of 5% with a maturity period of 21 years and a three-year grace period. The agreement was signed on March 18, 2026.
The second facility is a US$20 million loan from the OFID, signed on April 16, 2026, during the IMF-World Bank spring meetings in Washington. Designated as a Disaster Risk Management Development Policy Loan, this funding serves as budget support anchored in two strategic pillars: strengthening regulatory disaster risk management and ensuring resilient fiscal transparency.
This loan represents a repurposing of a US30 million loan originally contracted in 2023 for a hospital project that was later discontinued by the previous administration in favor of different financing. While the government sought to repurpose the full US30 million, the OFID ultimately agreed to US$20 million for this new policy-based initiative.
The OFID loan is highly concessional, featuring a low interest rate of 1.25%, a 21-year maturity, and a five-year grace period. Repayment is scheduled to begin in May 2031.
The Prime Minister noted that while the previous administration left “very little space” for borrowing, these strategic loans were necessary for national development and resilience. A loan authorization bill was presented to Parliament to formally authorize the US$20 million OFID borrowing.