Currently one of the country’s busiest airports, and gateway to The Eleutheras’ growing destinations of Harbour Island, mainland Eleuthera and Spanish Wells, the North Eleuthera International airport is finally set to get a multi-million-dollar upgrade to its facilities, through a concessional loan arrangement.
On Monday, September 9th, 2024, at 10:00 a.m. on the tarmac of the airport, residents under a tented pavilion, witnessed the formalization of a $55 million Loan Agreement between the Government of the Commonwealth of The Bahamas and Saudi Fund for Development, during a signing ceremony, signaling the first steps for a massive expansion and upgrade to adequately service the destinations, as well as a growing private jet air traffic schedule.
Prime Minister and Minister of Finance the Hon. Philip Davis led a delegation of high-ranking government officials including Deputy Prime Minister and Minister of Tourism, Investments and Aviation the Hon. Chester Cooper; Senator the Hon. Michael Halkitis, Minister of Economic Affairs; the Hon. Clay Sweeting, Minister of Works and Family Island Affairs and MP for Central and South Eleuthera; the Hon. Sylvanus Petty, MP for North Eleuthera; Dr. Kenneth Romer, Deputy Director General of Tourism and Acting Director of Aviation; and Paul Bevans, chairman, Airport Authority.
Also present was His Excellency Sultan Abdulrahman Al-Marshad, Chief Executive Officer, Saudi Fund for Development, and his delegation from Riyadh, Kingdom of Saudi Arabia.
“Today marks an important chapter for this island, and it is a privilege to witness Eleuthera’s tremendous progress firsthand,” said Prime Minister Davis.
Eleuthera, historically known as the ‘Land of Freedom,’ is rich in heritage and tradition, and acknowledged by the government as one of the fastest-growing economies in the country.
“You’ve seen the changes all around — new businesses, thriving tourism, and a brighter future on the horizon. But what truly matters isn’t just the numbers we celebrate, it’s the people. It’s the hardworking families who have called Eleuthera home for generations and the younger ones who now see even greater possibilities for their future,” said the prime minister.
He observed that the steady rise in air arrivals and international interest isn’t just about visitors coming to enjoy the beauty of Eleuthera; but all that the people, economy, culture, and environment have to offer.
“This partnership with the Saudi Fund for Development marks a turning point for Eleuthera and its people. For years, there has been talk about upgrading the North Eleuthera International Airport, but today we are moving from talk to action. This $55 million investment is about unlocking Eleuthera’s potential and ensuring that its people can fully benefit from the island’s rapid growth,” he said.
Officer, Saudi Fund for Development (center).
The Hon. I. Chester Cooper, Deputy Prime Minister and Minister of Tourism, Investments & Aviation, acknowledged the members of parliament for Eleuthera and their push, saying, “I recognize your Member of Parliament Mr. Sylvanus Petty and thank him for his constant advocacy on your behalf, and of course Minister Clay Sweeting who lives here, using influence of his office to help us expedite.”
He expressed the importance of the loan agreement: “Our Administration has built strong international partnerships to support our National Development Goals, with this loan signifying the benefits of these relationships. The further development of transportation services in the Family Islands is not only vital to the continued growth of our nation’s number one industry, but also to the economic growth of the people of Eleuthera. With the signing of this agreement, we will be able to revitalize the North Eleuthera Airport, providing it with the necessary facilities to establish its status as a world class international airport and improve the experiences of passengers travelling both to and from the destination.”
Deputy Prime Minister Cooper also thanked the Saudi Fund for Development for being a dedicated partner in The Bahamas’ journey toward infrastructural and economic development, and said its continued support is deeply appreciated.
“The commitment you have demonstrated toward our development goals as laid out in our Blueprint for Change has been impactful and we know that this partnership will blossom in the many years to come,” he said.
The loan comes at “favourable terms” including a low interest rate of 2.5 percent, and twenty-five (25) years to repay with the first installment due in five years.
In March of 2023, the Government of The Bahamas commenced a process to identify airports in the Family Islands to be developed as part of The Family Islands Renaissance Project. This project is part of the broader vision outlined in the Government’s Blueprint for Change, which places a strong emphasis on the importance of investing in the Family Islands.
The Family Islands Airport Renaissance Project aims to transform not just the North Eleuthera International Airport, but 14 airports across the archipelago.
“We committed to engage Public Private Partnerships to finance, build and manage key airport infrastructure. This loan signifies the benefits and progress of international partnerships in this regard,” Deputy Prime Minister Cooper said.
He noted that the North Eleuthera International Airport serves as the gateway to the island and is a major driver of tourism and commerce, saying, “In recent years, the demand for air travel to Eleuthera has surged, emphasizing the need for upgraded infrastructure.”
As of June 2024, there was a 32 percent increase in foreign air arrivals to Eleuthera compared to the same period in 2019, and a 2 percent increase over record-setting 2023 figures.
“The growth in arrivals is largely attributed to the increased international and domestic connectivity at this North Eleuthera Airport. We have seen robust direct international airlift from major cities in the United States such as Atlanta, Charlotte, Fort Lauderdale, Miami, and Orlando. Myriad of private jet traffic. One of the busiest in The Bahamas. In addition, domestic traffic from Nassau and Marsh Harbour has also increased significantly, driven by the growth in employment and the economy. This increasing demand brings with it the urgent need for expanded facilities and improved services. The existing infrastructure at North Eleuthera is no longer sufficient to accommodate the rising number of passengers and aircraft. The adding of the trailer facility for departures provided some much-needed temporary relief,” he said.
The planned upgrades to North Eleuthera Airport will encompass a complete overhaul of the terminal facilities, as well as airside improvements that include the revamp of the runway, and an expanded apron space. On completion, it will be capable of accommodating 400 passengers in the departure lounge, plus significant retail opportunities.
These upgrades will ensure that the airport is capable of handling larger aircraft, accommodating more passengers and offering a level of service that meets international standards as mandated by the International Civil Aviation Organization (ICAO). The project will also incorporate sustainable and resilient solutions, designed to withstand storm surges and hurricane winds of up to Category 5 strength.
DPM Cooper also announced the opening of Expression of Interest for construction that same day, and added, “We expect to execute contracts during the 4th quarter and complete the construction of the terminal in 18 – 24 months with airside works being done simultaneously… This expedited transformation is possible because of the invaluable support of the Saudi Fund for Development.”
Further describing the expected local impact, Deputy PM Cooper outlined, “The upgraded airport will attract more international flights, increase tourist arrivals, and generate more revenue for the local economy. In addition to the direct economic benefits, the construction of the new facilities will provide much-needed jobs during the building phase, and once operational, the airport will continue to provide expanded employment opportunities for local residents. The increased connectivity will also enable local farmers, artisans, and small business owners to reach broader markets, both within The Bahamas and internationally, further driving economic growth. The airport upgrades will seal Eleuthera’s position as one of The Bahamas’ premier destinations in the global tourism market, ensuring that we remain competitive and attractive to international travelers and investors alike… We are building for the future.”
His Excellency Sultan Abdulrahman Al-Marshad, also spoke of the significant milestone reached with the signing of the agreement. He deemed it a “new chapter” in relations between both countries and underscored the shared commitment in advancing aviation in the country.
The partnership between The Bahamas and the Saudi Fund is a growing one, with earlier ongoing projects. In July 2023, the $10 million facility for the Tourism Development Corporation’s incubation centers in Nassau, Grand Bahama and Exuma was executed. And in June 2024 another loan agreement was entered into on favourable terms for the construction of the Exuma International Airport.
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