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More details emerge of giveaways to Chinese Company in airport contract

- Residents cry foul; Describe the NDP as two-faced, hypocrites & opportunists
China Communications Construction Company (CCCC) Ltd (right) has reportedly requested a number of tax exemptions in their low bid for the contract to design and expand the runway at the TB Lettsome International Airport on Beef Island. Photo: VINO/Internet Source
From left: Premier Dr The Hon D. Orlando Smith, Deputy Premier Dr The Hon Kedrick D. Pickering (R7) and Health Minister Ronnie W. Skelton had protested the Biwater contract prior to the 2011 general elections. Photo: VINO/File
From left: Premier Dr The Hon D. Orlando Smith, Deputy Premier Dr The Hon Kedrick D. Pickering (R7) and Health Minister Ronnie W. Skelton had protested the Biwater contract prior to the 2011 general elections. Photo: VINO/File
From left: Minister for Communications and Works Hon Mark H. Vanterpool (R4), Education Minister Hon Myron V. Walwyn and Cromwell Smith had protested the Biwater contract but are now silent on the controversial airport expansion. Photo: VINO/File
From left: Minister for Communications and Works Hon Mark H. Vanterpool (R4), Education Minister Hon Myron V. Walwyn and Cromwell Smith had protested the Biwater contract but are now silent on the controversial airport expansion. Photo: VINO/File
ROAD TOWN, Tortola, VI- The National Democratic Party (NDP) Government headed by Dr The Honourable D. Orlando Smith came to power in 2011 on the rhetoric that the Virgin Islands Party (VIP) of then Premier Hon Ralph T. O’Neal OBE had chosen a foreign company, Biwater, for a water purchase agreement over a local company, Ocean Conversion (BVI) Limited.

They sold that to the people of the territory and it helped them to win the 2011 general elections.

Now a few years later, many residents and voters are now crying foul and describing the NDP as nothing but “hypocrites and opportunists”, as they are now pushing aside a local company ADC who has merged with overseas interests (same setup of Ocean Conversion) to bid on the airport expansion project.

It was this news site that first and accurately broke the story on May 17, 2016 that two companies made the final list on the runway extension project. They were China Communications Construction Company (CCCC) Ltd, and IDL Group, which merged with Sir Robert McAlpine Holdings and local partner ADC of the Virgin Islands.

The Chinese company, owned by the government of the Communist regime that practice a form of state control capitalism, had no local partner at the time they bid, however, according to our senior NDP sources in a question last night they have now linked-up with a local company. 

According to the Financial Secretary, Mr Neil M. Smith, the Government of the Virgin Islands will seek its own funding for the project via loans. 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.

Why Chinese bid is so low!

Our newsroom has unearthed why the Chinese company's bid is so low, with some $45 Million difference. In information obtained from the bid document, China Communications Construction Company will be seeking the right to set up a full labour camp on site for their workers, reducing the number of residents working on the project, thereby setting their own rates which would likely be lower than minimum wage.

In addition, they have requested exemption from the payment of work permit fees, payroll taxes, Social Security, National Health Insurance (NHI) and even meeting the requirements of minimum wage of the Virgin Islands.

The Chinese company was also able to bid so low because they did not keep to the Government rates on equipment. In a question to the Public Works Department on rates for certain construction equipment, our newsroom was advised of standard VI rates. The Chinese company is proposing to pay a 20 yd trucks $340 a day vs $700 standard PWD rates. For Excavators, the Chinese will pay $480 a day vs $800 standard rate in the VI, according to the PWD rates. Bulldozers will be paid $328 a day by CCCC vs $1,000 standard government rate.

Additionally, the Chinese proposed to pay Cranes $1200 a day vs local standard rate of $2,500 and Barges $2,000 a day vs $5,000 standard rate.

Hypocrites & self-interest; Where are the marches? 

With this information, it is clear that this particular bidder did not consider local market rates within their bid so allowing them to bid so low. While there is confusion over the airport runway expansion project, with the Government willing to give it to the foreign company over the local company, the question becomes where are those who were marching and in the same NDP rallying against the VIP over Biwater?

Where are the voices in 2010 and 2011 like Hons Myron V. Walwyn, Ronnie W. Skelton, Kedrick D. Pickering, D. Orlando Smith, Mark H. Vanterpool, along with Russel Harrigan, Bolo Crabbe and Cromwell Smith to name a few who marched and campaigned for Ocean Conversion in 2011 on the premise that it was a local company?.

A resident from East End, who gave her first name as ‘Annette’, told our newsroom in an invited comment that “it clearly shows everyone the real deal is that group had their own self-interest and they are not about what is right but what is in their own personal and political interest….How come they are not protesting the Chinese company? Is it because NDP is in, she asked?.”

Effect on the economy

Many vendors who cannot obtain payment from the NDP Administration and others who are being taken to court for owing government taxes and social security have also cried foul on this.

They have issues with an overseas bidder that will not be paying work permits, payroll tax, and social security or NHI for an extended period of time whilst our government is borrowing over $150 Million to fund this airport extension project.

They asked where the monies would come from to keep the everyday bills paid.

Our newsroom has done a quick analysis on the amount of monies that could be received by Government as work permit fees, Social Security and NHI contributions and payroll taxes on a project of this size and that number is almost $10Million. This money can keep some of the essential services going within the VI and help pay some of the lingering bills to our local contractors and vendors, as it is well established that the NDP left the country broke.

Annette asked “Is it really fair to ask our local residents to bankroll the government but when there is an opportunity for them to recoup or participate within the economic development, and we allow them to be totally shut out?”

The status of the Airport project remains unclear, with mixed signals coming out of the Dr Smith led Administration. The Cabinet Paper on the selection of the Chinese company taken forward by Deputy Premier and Minister for Natural Resources and Labour, Dr The Honourable Kedrick D. Pickering (R7) was deferred a few weeks ago and it’s not on this week’s agenda, according to a Senior NDP source close to the matter.

Leading up to the 2015 general election, Dr Pickering told the public the airport project is a “done deal” while Dr Smith described it as a “top priority" for his NDP administration in its new term.

49 Responses to “More details emerge of giveaways to Chinese Company in airport contract”

  • trouble (27/06/2016, 11:11) Like (6) Dislike (1) Reply
    well sah look ting to well the king
  • Bunny (27/06/2016, 11:15) Like (28) Dislike (2) Reply
    big time hypocrites they are I will never vote NDP again as long as I am alive
  • rattie (27/06/2016, 11:24) Like (21) Dislike (0) Reply
    comwell is just an opportunist I have no respect for him
  • Well Sah (27/06/2016, 11:55) Like (10) Dislike (2) Reply
    It has just began... Let them keep getting in Bed with these Chinese.
  • east man (27/06/2016, 12:00) Like (5) Dislike (6) Reply
    So wait Kedrick is the one who say the job should go to the Chinese??? That means he fighting against his own BF. Does the Crabbes know Kedrick trying to undermine their company????
    I might not like the Crabbes but i know for sure if they get the job i gone get a eat. a truck for $340.00 that cant even pay for fuel and the driver.
    • Guest (27/06/2016, 12:26) Like (13) Dislike (0) Reply
      Can't pay for the fuel and driver? What the hell your diesel truck running on premium gas?
    • wize up (28/06/2016, 09:11) Like (0) Dislike (0) Reply
      @ east man: now the crabbe family will join the VIP
  • beacon (27/06/2016, 12:03) Like (16) Dislike (2) Reply
    school child say the white house leak the black list thing...he wants his british company to eat
  • kelo (27/06/2016, 12:12) Like (4) Dislike (6) Reply
    PWD rates are still too low
  • Xxx (27/06/2016, 12:17) Like (7) Dislike (0) Reply
    there is more in the mota the NDP did this same thing with the hospital projet so why is anyone surpirsed....
    • Worked with the contractor (27/06/2016, 14:01) Like (4) Dislike (8) Reply
      NDP did not bring the Spanish workers for the hospital and pay them the same wages they would have gotten in Santo that was VIP. NDP had to get James Todman to finish the hospital.
      • Hmm (27/06/2016, 16:14) Like (8) Dislike (0) Reply
        Get your facts striaght, that was NDP who signed the contract with the Spanish firm. They lost the elections but the contract was already signed, so VIP had to honor the contract.
      • facts (27/06/2016, 23:29) Like (5) Dislike (1) Reply
        NDP hired Santo Domingo company Carimex, and VIP hired James Todman Construction
  • look to Antigua (27/06/2016, 12:26) Like (14) Dislike (0) Reply
    One only needs to look at the airport expansion project in Antigua for a play by play of will happen here. Chinese did exact same thing. No local workers, no compliance. But its going to save the taxpayers money right?
  • Ms P (27/06/2016, 12:53) Like (8) Dislike (0) Reply
    Vino you all good mehson how them ndp talk so much they only trying to undermind kerdrick hoping that funny man become premier but not over my dead body
  • onwe eye (27/06/2016, 13:14) Like (4) Dislike (0) Reply
    good question where are the protestors where is Edmund and all he noise we heard over biwater...I guess no one cares about local anymore. Infract Myron done say we cannot protect them anyway
  • Really (27/06/2016, 13:39) Like (7) Dislike (1) Reply
    I don't know why they want to bring in a company that will bring in their own ppl rather than give the BVI Islander the same ones they say can't get jobs to the china. They do it everywhere you go. They bring people to work and their own food they don't contribute to the country. nothing wrong with bringing in a few experts but not everybody and our ppl here suffering.
    • Eyes Wide Open (28/06/2016, 07:56) Like (1) Dislike (1) Reply
      While on his last trip to Jamaica, Obama warned about the Chines, (or any other country), going into a countries doing projects and carrying their own workers.
      I do agree that when government will be paying for anything, the charges automatically go up. The government should have negotiated lower prices on equipment and other costs with the local company also. Exempt the SS, Nhi and other related costs in order to get a better price. At least a greater portion of the millions would stay in the economy; while the Chinese would go with every d*** thing; just like the Dominicans at the Hospital project.
  • Truckers (27/06/2016, 14:16) Like (3) Dislike (2) Reply

    This is pure bullsh*t on the government of the day let them come ask for votes if they hire the Chinese

  • warning (27/06/2016, 14:36) Like (1) Dislike (5) Reply
    Prophet Brian Carn warned of the Chinese in the BVI. check what they did in the Bahamas.
    • @warning (27/06/2016, 20:09) Like (3) Dislike (4) Reply
      Chinese project was done in time on budget and its beautiful... Bahamas People just like the BVI.. Because they are locals they should be given things and not work for it....
      • wize up (28/06/2016, 06:23) Like (1) Dislike (0) Reply
        @ warning: just my 2 cent; if you look at the current political leadership of this territory you will see that all of them are fininicaly stable therefore out of touch with most of us(those guys bread done butter)
  • 6 or half dozen (27/06/2016, 14:40) Like (8) Dislike (0) Reply
    Biwater deal is far better than this one
    • @ 6 oe half dozen (27/06/2016, 17:24) Like (9) Dislike (1) Reply
      100 % much better fraser and jw are good negoators unlike the cuban
  • Unbelievable (27/06/2016, 15:32) Like (6) Dislike (6) Reply
    Listen...nothing is wrong with the Chinese building the airport they just got thru building Antigua's airport and other structures in other Caribbean islands. Some people in the BVI are too darn greedy! The country cannot afford the Crabbe's estimate...get it together person stop looking at self and look for Country!
    • .... (27/06/2016, 16:38) Like (2) Dislike (3) Reply
      And what of the crappy guyanese airport that the chinese built, or worse yet the bahamar fiasco?
  • YAWN (27/06/2016, 16:23) Like (7) Dislike (8) Reply
    All of this slander only coming out because the Crabs in a Bucket want to get them piece of the pie...
    • wize up (27/06/2016, 17:16) Like (3) Dislike (3) Reply
      @ yawn: you right!!! Had the crabs gotten the project none of the tax payers would heard anything once them cant get everything in dem basket it is problem so bad minded....the politician that are backing the Chinese are all local so what all the fuss about: all yu think the cruise project had ting to talk hold on for the airport project remember last airport project man went jail
  • wize up (27/06/2016, 16:43) Like (4) Dislike (3) Reply
    Our political leaders have business interest directly or the same business indirectly with the Chinese so at the end of the a local company will be building the airport ...
  • Buff-Baff (27/06/2016, 17:26) Like (8) Dislike (4) Reply
    People keep complaining that the government wasted taxpayers' money on the cruise pier and the hospital. Now that the government finds a way to cut cost, there are issues. $45M is a lot of money to save on a project. What the Chinese are offering for trucking and excavating per day is what should be the market price. When it comes to government, contractors tend to raise their prices way above what they would charge anyone else. It is about time that tax payers get value for money. I just saw in the news that a social security office building was constructed in Nevis for EC$17M; when I saw the size of that building I an convinced, base on past projects in the BVI, that such a structure built here in the BVI would be in excess of US$17M.
  • Charlie Chan (27/06/2016, 18:24) Like (1) Dislike (1) Reply
    Ah So! A McAlpine in the sushi...Ewwww!
  • ronnie (27/06/2016, 18:25) Like (5) Dislike (1) Reply
    What is the chiniese minister position on this?
  • crisis (27/06/2016, 18:32) Like (5) Dislike (1) Reply
    https://www.youtube.com/watch?v=KztdHmJz-8k
  • NDP heckler (27/06/2016, 19:27) Like (10) Dislike (1) Reply
    Ayo see the real reason why all the loose fowls and animals are being collected now? They will be food for those chinese when that time comes.
  • Try Something New (27/06/2016, 20:02) Like (3) Dislike (1) Reply
    Our Local and their greed have failed us and let us down..from NHI, High School Wall, Pier Port Project, East End, Long Look, GreenLand Can't done cant get fix after 15 yrs sewage problem, I can go on and on where our own have failed us...Now its their lost,,The government cannot be blame for trying something new........Do good and goodness will follow you..
  • alpine skier (27/06/2016, 20:06) Like (0) Dislike (1) Reply
    Your article refers to a 'McAlpine' person who is a successful British businessman with many interests worldwide.
    Never heard of him, or this company involved in the Caribbean that is his - but there was a McAlpine who was a
    mayor and then Lt. governor in the US state of Alaska who was heavily involved with the big oil interests. I don't
    think he really worked for British Petroleum, but your description sure sounds like the same persons. Interesting.

  • DST6 (27/06/2016, 20:43) Like (8) Dislike (0) Reply
    VINO I LOVE reading the news on your site. I totally gave up on the other one. However, I think both you and the bloggers are missing some critically points in your detail of the negotiated rates. How is it that the Chinese were able to get these rates for sourcing material, transportation and supplies? It is because this government has allowed, legalized and sanctioned local contractors OVER CHARGING LOCALS in the building trade. Maybe the local contractors have been paying officials kickbacks to allow them to do this nonsense. This is truly where this government has failed its people, helped to drive the cost of living in the BVI ridiculously high thru lack of price control which has subsequently resulted in an increase in crime from the lowest petty level to the worst kind of crimes. You know why? Everyone either just trying to eat or trying to keep up with the Jones, the few who can pay the high prices, and the Jones keep trying to keep the little man and woman distance away from where they are so they can make themselves feel good; I am at the top and you are at the bottom mentality....Rather than reaching down and pulling one another up...we develop the crab syndrome.

    So if we all have anything to say, it should be to thank the Chinese for putting the sunshine of these facts. Sunshine is the best sanitized! I am not saying I am for or against giving the contract to the chinese. I am going to stay neutral because I am more angry about the message that those numbers reveal. BVI contractors are price gouging their own and the elected officials legalized it! The Chinese are Smart enough to know rental rates in the BVI is over inflated so why not set up a labor camp agreed to once again by the BVI government. BVI keep having your cake and eating it too, eventually it will be the down fall of a great set of Islands.
  • ndp soldier (27/06/2016, 22:09) Like (7) Dislike (0) Reply
    I'm in a depression for a year now and will be in a Gasket if you all don't get rid of these Misleaders..We cannot wait for 2019 the white people and the Chinese will own everything and we will be living under Noel Lloyd building with Eggy and Yellow and the other homeless people..
  • watching (27/06/2016, 23:26) Like (7) Dislike (0) Reply
    Well said and 100% true
  • farmer brown (28/06/2016, 00:00) Like (5) Dislike (0) Reply
    If we were independent the chinise would have paid for the ndp campaign
  • BVIlander (28/06/2016, 11:09) Like (4) Dislike (0) Reply
    Our people are way too greedy and silly. The rates for trucking and heavy equipment in the country is way too high. All the Silly BVIlanders who here supporting the local contractors with their ridiculous prices, I hope you know as they carry up the cost of construction to make themselves richer, it costing you more to build a house. At least if the Chinese company help us to lower the construction rates our people may be able to afford houses. Labour rates are also ridiculous for what you get, it so bad now most contractors bringing in Filipinos just to get honest work. So we going to back the greedy contractors while we watch most bvilanders homeless or owing the bank some ridiculous amount of money for a poorly built house.
  • we the people (28/06/2016, 23:42) Like (0) Dislike (0) Reply
    The voters have the power not the media, twitter, Facebook or instagram but maybe delegram.
  • baha (29/06/2016, 13:46) Like (0) Dislike (0) Reply
    Check out Bankrupt Baha Mar in Bahamas built and funded by CCC. They are holding Bahamas Government hostage in $3 Billion Dollar Bankruptcy. When Chinese don't get their way they walk and leave everyone holding the bag! Do your home work!


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