Forget local; Gov’t must protect the treasury first- Radio host
Speaking on his EGM Show on ZROD 103.7 FM on May 26, 2016, Mr Maduro said he heard that local contractors are upset that Government is reportedly considering giving a Chinese firm the contract to design and expand the airport runway and that several contractors met with the Premier and previously with other Government members with supporting documents to show that the bid by the Chinese firm is not in the best interest of the territory.
According to Virgin Islands News Online’s sources, two companies made the final list on the airport runway extension project. They were China Communications Construction Company Ltd, and IDL Group, who merged with Sir Robert McAlpine Holdings and local partner ADC of the Virgin Islands.
The Chinese company has no local partner and it is expected that the Government of the Virgin Islands will seek its own funding for the project. Government also had given all companies the option of providing funding for the project in the design and build tender.
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.
“What is this? How could the Chinese build this thing for $154m and the local people going to take $199M. Something is wrong. The Government particularly at this time must protect and defend the treasury, the public funds of the people,” Mr Maduro argued.
The talk show host added that if the bid by the company with the local partner was on par with the Chinese firm he could see their point of view.
“I can’t understand what is going on in this country. So because I am local you must pay me what I want? If the Chinese can do it for $154M why is the other firm with local connections charging $199M?”
Local contractors opposed to Chinese firm
Recently, businessman and contractor Mandinka M. Crabbe called on Seventh District Representative, Deputy Premier and Minister for Natural Resources and Labour Dr The Honourable Kedrick D. Pickering to stand up for the people who have elected him consistently since 1999.
Crabbe was also adamant that Dr Pickering cannot come to the community and speak about foreign contractors coming into the territory. “We don’t want to hear nothing about the Chinese...they are not good for the country...everywhere the Chinese go it’s a problem, look at Antigua, the project there start out at one thing and now the cost tripled,” he had stressed.
Another local contractor, Wesley Penn, said: “We don't want the Chinese...we don't need the Chinese. When the Chinese come they come to take over.”
16 Responses to “Forget local; Gov’t must protect the treasury first- Radio host”
The chinese will need to rent expensive housing. How is it then that their bid is 30% higher than the chinese? The thing to do is to adjust their bid to a more competitive value. The bid should be based on the cost of the project, not some random number out of thin air.
This is a genreal problem I've seen in the VI, businesses do not know how to price their goods.
When you use an outside contractor, their salaries, cost of supplies, etc all LEAVE the country.
Local contractors' salaries would stay and circulate in the BVI. More local supplies and local suppliers would benefit and the money would stay in our economy. Local contractors would use existing workers to execute their projects, while the Chinese would bring in cheap labour (8 people staying in one 2 bedroom apartment).
We have to look beyond just the upfront figure of each bid and look at the secondary and tertiary benefits.
There is national pride to be considered as well. That is invaluable.
If we use the Chinese company then we dictate the level of employees they can bring in. For example only senior engineers and technicians, who can train and leave their expertise with the local counterparts. We can also mandate that no more than 20% of the total labour force be from China.
We will only get what we negotiate for. But often times our government does not negotiate. They just take whatever the "big countries" or "big companies" dish out to us!
I personally do not believe awarding the contract locally and paying $45 million more is wise. Where will that extra money come from?