St Helena Airport: A Costly Endeavour

who paid for st helena airport

The St Helena Airport, which opened in 2016, was funded by the UK Department for International Development (DfID) (now replaced by the Foreign, Commonwealth & Development Office). The project cost £300 million, with the UK government spending £285.5 million on designing and building the airport. The St Helena Leisure Corporation (Shelco) was also involved in the planning of the airport, intending to construct luxury resorts and a hotel in conjunction with the airport.

Characteristics Values
Cost GBP 285.5 million (~USD 380 million)
Paid by UK Department for International Development (DfID)
Construction company Basil Read (a South African construction company)
Construction contract signed on 3rd November 2011
Construction began in 2011
Airport opened in 2016
Delayed opening due to Safety concerns over unpredictable wind near the runway

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The UK government's decision to fund the airport

In 2002, the islanders of St Helena were given a choice: invest in a new ship to replace the RMS St Helena, or build an airport to connect the island to the world. The prospect of air travel excited the islanders, who voted overwhelmingly to build an airport, largely due to the potential for a tourism industry.

In March 2005, the British government announced plans to construct an airport in St Helena, to be funded by the Department for International Development (DfID). The project was expected to cost £300 million and be completed by 2010. However, there were delays in the project, including the British government's insistence on personally reviewing the paperwork, which went up to Prime Minister Gordon Brown.

The DfID restarted the procurement process in October 2006 to identify a suitable Design, Build and Operate (DBO) contractor. Four bidders were pre-approved for the DBO contract, and the Italian company Impregilo was appointed in 2008. However, the project was suspended in November 2008 due to financial pressures from the global financial crisis.

The St Helena Leisure Corporation (Shelco) planned to construct luxury resorts and a hotel in conjunction with the airport, but their proposal was turned down by the local government and the DfID. In 2011, the contract to Design, Build and Operate St Helena Airport was awarded to Basil Read, a South African construction company. The airport was certified for operations by Air Safety Support International (ASSI) on 10 May 2016, with a final cost of £285.5 million (~USD 380 million).

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The Department for International Development's (DfID) role

The Department for International Development (DfID) played a crucial role in the development and construction of St Helena Airport. In March 2005, the British government announced plans to construct an airport in St Helena, with funding from DfID. The airport was expected to cost £300 million and be completed by 2010.

However, the project faced significant delays and challenges. By late September 2006, all companies tendering for the building and running of the airport had withdrawn from the bidding process due to concerns about DfID's handling of the procurement process. DfID restarted the procurement process in October 2006 and received capability statements from bidders in March 2007. The project faced further delays due to financial crises and logistical challenges, as St Helena is located in the middle of the South Atlantic Ocean, requiring the importation and transportation of essential materials.

Despite these setbacks, DfID remained committed to the project. In 2008, the Italian company Impregilo was appointed as the Design, Build and Operate (DBO) contractor. Construction finally began in 2011, and the airport was certified for operations by Air Safety Support International (ASSI) on May 10, 2016. The total cost of the project was £285.5 million (~USD 380 million), and DfID provided ten years of subsidies, after which the airport was expected to break even.

The role of DfID in the development of St Helena Airport was not without controversy. There were concerns about the safety of the airport, with test flights experiencing issues due to unpredictable wind conditions. Critics argued that DfID ignored repeated warnings about the safety issues, and the project was labelled as "incompetent" and "a scandal" by some. The airport's delay in opening resulted in financial losses for the UK taxpayers, as they had to underwrite the losses of Comair, a British Airways franchise, and cover the risk of low demand for the initial years of the service's operation.

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The St Helena Leisure Corporation's influence

The St Helena Leisure Corporation (Shelco) was a major force pushing for the construction of St Helena Airport. The corporation was set up by Arup's Sir Nigel Thompson and Berwin Leighton Paisner's Robert Jones, who planned to construct luxury resorts and a hotel run by Oberoi Hotels & Resorts in conjunction with the airport.

The St Helena Leisure Corporation's proposal was for real estate to be sold before construction began. However, this proposal was turned down by the local government and the Department for International Development (DfID). The DfID funded the airport, which cost £285.5 million, with approximately £202 million going towards design and construction by South African engineering group Basil Read (Pty) Ltd. The UK government also granted additional funds of up to £10 million in shared-risk contingency and £35.1 million for 10 years of operation by South African airport operator Lanseria Airport.

The construction of the airport faced several challenges and delays, including financial pressures from the 2008 global financial crisis and logistical difficulties due to the island's isolated location. The airport's construction also raised environmental concerns as it threatened the survival of endemic species and the nesting site of the Saint Helena plover, the national bird listed as vulnerable.

Despite these challenges and concerns, the airport was certified for operations by Air Safety Support International (ASSI) on 10 May 2016, providing rapid access to the rest of the world and enabling medical evacuations for seriously ill patients to receive life-saving treatment on the African mainland.

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The South African Air Force's initial survey

The South African Air Force suggested that an airport on St. Helena would extend the United Kingdom's capabilities to carry out airborne missions in the South Atlantic region. These missions could include maritime patrols in accordance with international fishing agreements, counter-piracy missions along important trade routes, and airlift operations into Southern Africa.

The survey also considered the ecological impact of constructing an airport on Prosperous Bay Plain, which was one of the few remaining sites on St. Helena with significant ecological diversity. The site was critical for the survival of numerous endemic species and served as an important nesting site for the Saint Helena plover, the national bird of St. Helena.

Despite the South African Air Force's conclusion that an airport was not practical, the UK government eventually decided to proceed with the project, driven in part by concerns over a continuing tense standoff with Argentina over the Falkland Islands sovereignty dispute. The project faced numerous delays and challenges, including financial pressures and the logistical difficulties of constructing in the middle of the South Atlantic Ocean.

The construction contract was ultimately awarded to Basil Read, a South African construction company, in 2011, and the airport was certified for operations in May 2016. The airport has opened up rapid access to the rest of the world for St. Helena and has facilitated medical evacuation flights for seriously ill patients requiring treatment on the African mainland.

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The airport's construction and logistical challenges

The construction of St Helena Airport was a challenging project that required the mobilisation of a workforce and logistics in the middle of the South Atlantic Ocean. The airport was constructed on Prosperous Bay Plain, one of the few remaining sites on St Helena with significant ecological diversity. This posed a challenge, as the preservation and protection of the location were critical for the survival of numerous endemic species.

The airport's construction also presented logistical challenges due to the island's isolated location and the lack of construction equipment. Everything, including 70,000 tonnes of goods, 5,000 tonnes of explosives, and over 100 items of construction plant, had to be shipped to the island. The only main resources available on the island were personnel, water, rock, housing, and some food supplies. To overcome this challenge, a new harbour was constructed at Rupert's Bay, capable of handling construction equipment and fuel supplies. A 14-kilometre road was also built to connect Rupert's Bay to the airport site.

The contract to design, build, and operate the airport was awarded to Basil Read, a South African construction company, in 2011. However, the project faced delays due to financial pressures from the 2008 financial crisis and strikes by workers over wages and working conditions in 2013. The total cost of the airport was reported to be £285.5 million, with approximately £202 million funded by South African engineering group Basil Read. The UK government also provided additional funds of up to £10 million in shared-risk contingency and £35.1 million for 10 years of operation by a South African airport operator.

The construction of the airport involved significant earthworks and the building of a new runway. The airport was certified for operations by Air Safety Support International (ASSI) on 10 May 2016. Since then, it has facilitated rapid access to the rest of the world and has been instrumental in completing medevac flights to take seriously ill patients to the African mainland for life-saving treatment. However, the airport continues to face challenges, such as Windshear, which prevents larger planes from landing safely on one of the runways.

Frequently asked questions

The UK Department for International Development (DfID) spent £285.5 million (approximately $380 million) on designing and building St Helena Airport.

The airport cost approximately $380 million, or £300 million.

The contract to design, build, and operate the airport was awarded to Basil Read, a South African construction company, in 2011. The St Helena Leisure Corporation (Shelco) was also involved in the planning of the airport, intending to construct luxury resorts and a hotel in conjunction with the airport.

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