Airport expansion & new hospital projects were demanded by David V. Johnson
In an article published by World Property Journal on May 9, 2014, Mr Johnson related how he came to the Virgin Islands and that he only invested after some of his demands were met.
This included that the runway at the Terrence B. Lettsome International Airport be expanded and that a new hospital was built.
Mr Johnson said that in 2000 he built a boat, a 130-foot yacht, to tour the Caribbean and find the best place to build a warm weather resort. The essential criteria was to find somewhere with a ten-month season, a stable government, no corruption, great physical beauty and safe water for sailing and boating.
He said he looked at Cuba and met Fidel Castro in 2002 but he wouldn't guarantee clear title. He then spent two years touring the Bahamas and found that it was beautiful but the shallow waters make the water temperature very warm from April onwards which influences the air temperature.
VI fulfilled his criteria
The Virgin Islands, he said, fulfilled all his essential criteria and that the villa rental market was well established but the process of buying property was painful. He said it took two years to get permission to build a new property, there were poor air links and mobile telecommunications were very expensive.
“When I looked at building my project here I needed the BVI government to do four things: to transfer title within 90 days, to build a new hospital, to break the monopoly on telecoms and to look at extending the existing runway to enable direct flight access from cities like Miami and New York. All of these are now done or about to be done,” Mr Johnson told the magazine.
VI economy was hurt by efforts to please investor
It is no doubt that the new Peebles Hospital was a drain on the VI economy and will still be with the introduction of the controversial National Health Insurance which critics see as a callous scheme to force citizens to help maintain the oversized hospital.
The National Democratic Party (NDP) originally budgeted the construction of the hospital at approximately US$60 million, and expected it to take just under 2 years to construct. It turned out that the hospital cost well over US$120 million to construct, and took over a decade.
It also cost a further US$20 million to furnish to become operational, forcing government to appeal to donors.
According to research, in 2011 the Territory had its largest ever budget deficit, of US$29 million (approximately 2.6% of GDP), and by 2012 public debt had quadrupled from pre-2007 levels to approximately US$113 million (approximately 10.3% of GDP). Nearly 84% of that public debt was attributable to the new Peebles Hospital project.
Airport expansion outlandish & another drain on the economy
Meanwhile, critics of the airport expansion project have labelled it as outlandish and do not think the level of debt such a project would incur is warranted at the moment.
The project could cost well over $300M when one looks at the bids that have been submitted.
It was this news site that broke the story that the NDP Administration was enteritaining a scheme to privatise the Terrance B. Lettsome International airport in an own, build and operate formulator with all foreign companies that submitted bids.
Hon Ronnie W. Skelton, Minister for Health and Social Development, had said that despite this challenge of high cost to have the project done, the airport expansion must be done as Government does not have a choice.
"Yes we all would not like to spend a $100M, but Madam Speaker all my resources are telling me that the numbers are not coming in any lower, but I would like to build one for a lot less, but right there in St. Vincent they are building one for some $250M. Yes, that one is 9,000 ft and if you do the research, you will recognize that we do not have a choice," Hon Skelton had told the House of Assembly on Tuesday, February 11, 2014.
$100M invested by Johnson
Meanwhile, Mr Johnson said Oil Nut Bay has permission to build up to 400 homes on the 400-acre site at North Sound, Virgin Gorda but we will only allow 88 homes. Half of the land will be kept natural.
At the time, Mr Johnson said he spent $100 million on infrastructure at North Sound and that 28 homes of the 88 total homes are sold.
Victor International built YCCS, the Yacht Club Costa Smerelda, in North Sound on Virgin Gorda. It opened in January 2011 and is the only super yacht marina in the VI with berths for 42 boats up to 300 feet. North Sound is where Sir Richard Branson and Larry Page own private islands.
Relentless guy
Asked what personal attributes has made him so successful, Mr Johnson said “I am a relentless sort of a guy. I don't give up. I have a passion for the environment and for educating kids and want to build sustainable and high quality communities. That's been the backbone to all my projects.”
Asked what he is most proud of at Oil Nut Bay, Mr Johnson said “It would have to be my relationship with the people of the BVI and creating the quality of homes and facilities that have never been here before. I am proud that we have completed the infrastructure already because the complexity of logistics can't be over emphasised. We are the new brand for the BVI. They have great hotels but they are all fairly old.
“Solar power was illegal when I arrived and now it is not. It took three years for the government to provide electricity here and three hours for us to connect it. These are all significant improvements.”
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64 Responses to “Airport expansion & new hospital projects were demanded by David V. Johnson”
The BVI has no natural resources to live on therefore requires foreign investment. The two major drivers of our economy are Financial Services and Tourism, both of which are foreign controlled. Tourism will be required to hold more strain as Financial services will see reductions with outsourcing and other market forces. The real question is, would you invest $50 million in a hotel/resort/marina where there's no proper airlift? Give me a break with the black vs white, rich vs poor nonsense. The rich run things globally, get used to it and stop dreaming as if it could be different here. Every one gets an education so they could get a job and get money, so they could own a business and get money, people want and need money to survive. Poor people don't provide jobs. Any reasonable investor would require certain things before putting in their money so I don't know what the surprise is. Further, did VIP fight against Branson, Jareki, Johnson and others? Do the math before playing foolish politics. Let's get ready for about 50 comments of pure ignorance.
It used to be that the rich used such accounts to hide money. As we all know as well as a few guys in jail for ponzi schemes know, we today's technologies there is no hiding money any longer.
BVI you have less than 20 years to keep living off of this income before its going to be absolutely illegal with heavy penalties of those caught. Just ask the swiss when their banks were the safe haven but that system collapsed too.
you absolutely knows nothing about the sector, it not offshore banking it's the financial sector, ie. companies set up to make doing business in another part of the work quicker and easier, it not about hiding money. yall not suppose to politicize everything.
If companies throughout the world wanted to get incorporated no easier place than states especially theState of Delaware that if you check your records incorporates more companies world wide than anyone in the world.
So get your facts straight my friend.
It is not offshore banking. It is company incorporation and most of the clients are from Asia - they don't need to hide money from the US or the OECD. Bule is right, you know nothing about the sector.
Fraser was the one that started the airport expansion. Also, when did Johnson's project start? This is not politics, it's real life.
VIP was bragging how they started the Hospital and they made the Airport an International Airport.
Hmmmmmmm
Let me hear how VIP cronies will try to spin this!
the money to build his yacht and do these things? What is the history of his construction company? Is there
public record of his business activities and any monies fronted him? Is he a self-made multi billionaire or is most
of the money fronted to him by others? What is the full story? We have people involved with the BVI who have
millions but the mentality of a cheeseburger. Rich people are not necessarily intelligent or have good taste.
And in the meantime, Tortola gets the crowds of cruise ships, trash, no infrastructure, taxis while his compound is so elitist no one can go there without an invitation. We don't need a big airport. All his customers have small private jets. AND we will never have direct flights. It is unrealistic and not economically feasible. Money dazzles again. Shame on the Naivety of our supposedly sophisticated government. Suckers...
looking tgird world and unknown but busy
promoting tourism.
How many Virgin Islanders work at Oil Nut Bay, aside from Mr. Lettsome? How many are involved in management or any position other than restaurant servers or menial labur, aside from Mr. Lettsome? How many black people (from ANYWHERE) work at Oil Nut Bay? It is a joke, not a very funny one, but a joke none-the-less.
How much income does Oil Nut Bay generate for the BVI, versus how much Mr. Johnson's demands have and will continue to cost our government and the taxpayers for many years to come?
We can reasonably ask the same employment questions in reference to Necker, Eustacia, Scrub, Guana and Norman Island too. What exactly makes these "investors" any different from Ken Bates? Bates intended to make Wickham's Cay and Anegada virtually inaccessible to Virgin Islanders unless they were working there. How many of "us" are welcome at the restaurant at Oil Nut Bay? How about on the beach? Would we be asked to leave if we somehow managed to make it onto the beach without the assistance of a motorized watercraft which are no longer permitted in the bay?
We can all turn a blind eye to the fact that successive governments have allowed all this to take place under our collective noses and continue to do nothing, or we can make a few demands of our own if certain politicians would like to be elected or re-elected.
Outside investment is a requirement, but giving away the cow to get some milk is a lose, lose proposition.
Government: We don't give a $#!t! Go to hell!
Rich outsiders demand.
Government: We do you want us to take it, sir? Hand, @$$ or mouth?
I wish Noel Lloyd didn't die.
flat denied entry into the BVI in the first place. Truly amazing. And disgusting.
We are surrounded by them? We don't know what goes on on these islands. We have politicians rubbing shoulders with these guys who have one intention but to be segregated. Any politician who grants favours to white expats resulting in an unfavourable position for our people must be voted out and we the people must become vocal.
So we are putting you on notice, No. 1 -- Minister of Natural Resources and labour, you got to go...you must go. You do not understand the history of our islands.
We continue to be in the mindset that we want jobs, we want jobs. We don't want to be no modern day slaves, we want to be the ones owning the jobs. This should be the mentality of a mature Government, preparing our people to maintain a great stake in the country be the major employers and not the employees. All this sheeitt will come to a head one day -- how long, not long. These practices of pandering to people like Johnson and the like must stop.
We must not repeat the history of these islands.
These two projects that are being referred to in this article are highly beneficial for territory , rich and broke
The people of the Virgin Islands deserved a well run and modern hospital and an airport that can facilitate one of the major pillars of our economy which is tourism. We knew this before Johnson arrived so I'm not sure why he's taking the spotlight. I say go fly a kite. We are not stupid people and we certainly don't need Johnson telling us what to do. I'm sure he has his opinions and thoughts, but don't purport to be the shining star on these initiatives. I'm not buying it. I'm proud of my hospital and look forward to the runaway extension so that people can have another option.
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This man is a monster, look at what he did to Biras Creek. When he took that hotel it was smooth transaction, now nine years later the resort is a none existing property. And to think the BVI`s Government allows him to do this!!! How heartless can someone be to keep a meeting today with 75 staffs and closed the hotel that said day and that shameless man walked out of the meeting leaving all the heartbroken staffs crying. BVI don`t need this kind of people, we need people who says that they cares for the BVI and it`s people and they really meant it.
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