An appeal has been launched to raise almost $2.5 million to help pay off outstanding debts surrounding the Spirit of Bermuda (pictured).

The Bermuda Sloop Foundation wants $2.25 million to pay off the outstanding debt from the building of the ship after costs overran.

But it also wants another $3 million in a longer-term project to set up an endowment fund to help pay for future programmes.

The vessel sailed into Bermuda on September 30 last year and so far 270 Bermudians have experienced at least a five-day voyage on board.

The Foundation has plans to raise $2.6 million to pay for the mortgage of the ship and grow an endowment fund to $3 million over the next five years.

The endowment fund will pay for future programmers.

According to the chairman's report, the final cost of the boat was $6 million, an increase of $300,000 from March 2006 and $1.9 million since 2003. The increases were due to the complex electronic, technical and safety mechanical systems.

The final $2.6 million will pay the $1.7 million mortgage, the $260,000 private loan on the renovations and $600,000 for the endowment fund to reach $1 million.

Speaking on behalf of the foundation, executive director Malcolm Kirkland said the price for the boat skyrocketed 40 per cent from when they saw it in 2003 until it arrived in Bermuda.

"Our whole business model didn't contemplate that. We didn't plan on still having to do capital fundraising", he said.

He said the current interest payments were $9,000 a month.

Mr. Kirkland said the opening income was "pretty good" with half the operating expenses being produced by the operating revenue. They have raised about $900,000 from donations.

He said the Foundation would like to be self-sufficient in three years and said they know there is proof in the concept they have been working with.

Mr. Kirkland said they have collaborated with Wedco for a long term facility at number seven and eight Dockyard Terrace, but costly renovations had to take place first.

"This project is definitely Bermudian led. Ninety-six percent of the donors are local with 85 percent of the dollars being Bermudian", he added.

He said the Foundation was very appreciative for all its donors over the years.

"We are pleased the role of the ship has taken. There are kids who graduated from Adult Education when the public system failed them who exchanged onto German and Dutch naval ships and we had the Germans and Dutch on the Spirit", he said smiling. The Spirit has conducted 13 coastal five day voyages including nine schools teams with Sandys Middle School, Spice Valley Middle School, Dellwood Middle School, Bermuda Institute, CedarBridge Academy and Adult Education School. She also has participated in the ASTA Tall Ships Challenge in the US and Canada.

For more information about the foundation or to give donations, contact 737-5667 or e-mail info@ bermudasloop.org.