Banks reject loan requests for Airport Project as broke NDP Gov’t struggles
The National Democratic Party (NDP) Government whose Minister responsible for the project, Deputy Premier and Minister for Natural Resources and Labour Dr The Honourable Kedrick D. Pickering (R7), has already declared the project a “done deal”.
However, the Airport Runway Extension Project has other vexing issues beside who is awarded the contract.
Banks run far from NDP
Reports reaching our newsroom from our senior NDP sources are that thus far all lending institutions approached by the Dr D. Orlando Smith led 5-year old Administration have shunned lending government any money for this project.
Most of the financial institutions do not have confidence in the Government’s financial management ability, and others avoid government all together, as some are also concerned about how the NDP has left the country broke while others are just not comfortable with some of the public negative and divisive statements being made by some Ministers of Government.
The same senior source confirmed that most if not all financial lending institutions are very “nervous” of the Virgin Islands right now. The two senior NDP sources told our newsroom that the Government has eroded our finances so much that the only thing left to keep the VI afloat is “using private relationships (trust between individuals in these institutions and a select few in government) to get things through”.
When asked what about CIBC FirstCaribbean International Bank, which has been generous to the NDP administration and which Opposition Member Honourable Andrew A. Fahie (R1) has publicly questioned the relationship, we were told “they felt they got burned with the Ports Loan so they remain skeptical.”
However, Financial Secretary Neil M. Smith refuted the allegations.
“No, that is not true,” Mr Smith told our newsroom today, August 29, 2016, adding that there have been "no negotiations for finance on airport yet."
Another controversial project
The Airport Runway Extension Project is now mired in controversy. It was this news site that first and accurately broke the news that two companies made the final list on the runway extension project. They were China Communications Construction Company Ltd, who the Administration favours and IDL Group, who merged with Sir Robert McAlpine Holdings and local partner ADC of the Virgin Islands.
According to information received from our sources, China Communications Construction Company Ltd’s bid was approximately $154 Million and IDL Group, the Sir Robert McAlpine Holdings and local partner ADC bid, was reportedly $199 Million.
However, the Chinese company’s deal came with many giveaways, concessions, lots of fee waivers and overseas labour and equipment and claims of the money leaving the territory, giving them the ability to bid so low.
Since then it was unearthed by the local press that the China Communications Construction Company is on a World Bank black list for alleged corruption of one of its subsidiaries.
Furthermore, the local press has reported that the NDP had hidden information about the airport project before the 2015 snap election.
The choice of a contractor for the Airport Runway Extension Project has divided the Dr Smith Caucus, with many long time NDP supporters, contractors and Heavy Equipment Operators from the Seventh and Eighth Districts making representation to keep the money local.
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65 Responses to “Banks reject loan requests for Airport Project as broke NDP Gov’t struggles”
1. We knew what the NDP's priorities (airlift - airport expansion, $7m to BVI Airways - and NHI) were when we voted overwhelmingly for them, last election. They are now executing them, so why all the fuss?
2. If the airport project was EVER to be completed, don't be surprised to see another major project emerge or come back to the table. My guess is the Beef Island hotel / resort development or Prospect.
3. It seems that each party knows best for us as a country and will "bulldoze" unpopular projects through despite public opposition - VIP had Biwater - while we wait for a next election, when we vote them out. Then the incoming party repeats the same thing. The talk show hosts grumble, we look to UK for salvation, we talk about a 3rd party / option but end up doing nothing.
just sayin
just sayin
.
Everybody jump up! Everybody hands up! Everybody link up! Everybody stand up, for NDP! For we country!
Y'all ain jumping anymore though. Hilarious.
if the government is really serious about our tourism product they have several options instead of trying to build an over priced airport, when they are several in the region already.
Options such as having a proper ferry services and schedule. Why all ferries arrive and depart around the same time. Let's arrange a later ferry during the height of our season to accommodate late arrivals. Offer discounts to passengers coming to make it worthwhile.
Another option, have a late night flight directly from St. Thomas say around 10 o'clock giving passengers enough time to collect luggage and check and check in. We could use our newly susides BVI Airways for this.
If the need more solutions look at Bora Bora and Maldives and those other small pacific tourist hot spot. They don't have an international airport but millions visit them annually. Good customer service plays a role also.
You beg for $25m to run day to day expenses (first ever in BVI History) and now want $200m for an airport that is not needed at this time ? FOH
I Pray everyday the country can do better and change and they go by rules and not by who no who BVI WHEN WE FALL WE WOULD FALL HARD.
alone granting a big money loan to a government. there are a couple banks here who are very hostile to normal
banking business and they should be shown the door. let them sell maple syrup back in the home country. the only
depositors they want are either very poor or very rich. we all know which banks....
You have spoken TRUTH. for ALL OF US
We are soo ASHAMED