Chinese Company In! Local partner Company Out! For Airport project award
The Chinese firm is a state run Statutory Corporation owned and supported by the Communist Regime of the People’s Republic of China and builds airports, bridges, highways and ports worldwide.
It was our newsroom that first and accurately reported on May 17, 2016 that the NDP Administration was faced with a choice between two companies who made the final list and that the Government was leaning towards CCCC.
The other company was IDL Group, who merged with Sir Robert McAlpine Holdings and local partner ADC of the Virgin Islands.
At the time of our first report the Chinese company had no local partner but after local contractors, the Opposition, civil society and the media protested, a local partner was added.
It is our understanding that China Communications Construction Company Ltd’s bid was approximately $154 Million and IDL Group, with Sir Robert McAlpine Holdings and local partner ADC, was reportedly $199 Million. However, it is unclear what the final figure is after negotiations and tax breaks for CCCC.
It is our understanding that Sir Robert McAlpine, with local partner ADC, was willing to reduce their bid to help the government save money and that most of the monies were expected to circulate in the territory.
The vote in Cabinet
The Cabinet vote of December 21, 2016 was contentious, according to the same source, and it was reportedly presided over by Deputy Governor Rosalie Adams. After months of lobbying by NDP supporters, and contractors mostly from the eastern end of Tortola, the Administration has allegedly made a decision to award the runway expansion project to the Chinese owned Company.
The final figure and the deal is not immediately known as of press time and it is expected that the Government of the Virgin Islands will seek its own funding for the project, something that has to go to the House of Assembly.
While the principle of the Westminster system of Cabinet Government is decisions are unanimous (the well of the collective) some Cabinet Members are this morning, (at least two) distancing themselves from the decision, claiming they voted against it.
Our news room has the names of the two Ministers who are now claiming to have voted against the decision; however, our newsroom will investigate further.
It remains unclear of the fallout over this decision, with many already calling the NDP government hypocrites for criticising the Virgin Islands Party (VIP) over Biwater but now doing the same thing with choosing the Chinese Company over locals.
Both the Premier and the Minister for Natural Resources and Labour Dr The Honourable Kedrick D. Pickering (R7), whose portfolio is the airport runway project, have been strong supporters of the project and given it to CCCC.
Meanwhile, Premier Smith could not be reached for comment as of press time.
We will bring you more details on this saga as the information becomes available.
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71 Responses to “Chinese Company In! Local partner Company Out! For Airport project award”
They bring in all their own workers and the local people will not see a single penny of employment from them. The materials used will be sub-standard and the safety on the project will be non-existant!.
Look up the tank project these guys did for CNRL in Fort Mcmurray Canada. The tanks collapsed and killed a number of people. Mark my words this runway fill be coming apart shortly after it is built and the Chinese and OUR money is long gone.
And say they aint selling out? Miss me with tha
The Chinese bid is deceptive because they have either negotiated or are negotiating to avoid paying SS, Income Tax, and NHI. They will be lowballing local equipment and other services and bringing in / purchasing abroad other services that could be provided locally.
If the gov is going to give them, these "investment incentives" these should be public knowledge, so that the total cost of the Chinese bid can be compared to the cost of the "local" bid.
But with scanty financial reporting, no audits, no budgets, and no accountability- NPD only Solution – borrow ourselves into deeper debts.
In the meantime –borrowed money will start flowing again in the hands of the few. The economy would “appear” to look “Robust” again, as the Premier would like us to believe.
They can then “boast” about how good our economy stands for the upcoming election. Give us those fuzzy, cuddling, feelings, and “hijack” the upcoming election once again.
People, please don’t fall for the “okeydoke,” again.
We are getting ourselves – deeper and deeper into Debt without any kind of Accountability.
This move can end up being the most disastrous move being ever made in the history of our country.
Adding to the Biggest Debt ever incurred in our Peoples’ History.
Possibly adding to the worst financial disaster our future generations would have to undertake in digging themselves out - from deep under.
Enough have been said by those who have shared for LOVE of Country.
No more need to be said. “Hindsight will certainly prove Our Lack of Foresight.”
Hope for the Best, Get Ready for the Worst, and Accept What the Most High Sent.
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Ok. Now to the Terrance B. Lettsome International Airport (TBLIA) expansion. No doubt sea and air transportation is needed for residential and visitor movement. But is expanding TBLIA expansion the best and effective transportation investment at this juncture? Would be better to improve and modernize the ferry system? Was it not this week the acting Accountant General indicated that government is borrowing more than it afford to pay back? Given this assessment, can the VI afford to add $154M to its $100M+?
A firm fix price, low, responsive and responsible contract vehicle is not ideal for large capital project. Low bid are appropriate for small construction projects. Larger projects typically are awarded through negotiation. Was there an attemp to negotiate with Sir Robert McAlphine Holdings and ADC? The VI needs to look beyond the initial economic contract impact; secondary economic must also be looked at, i.e., multiplier effect in the economy. It is no secret that every dollar spent in the local spending has a multiplier on the economy. To the maximum extent practical, capital projects should go to local contractors? Why could not local construction firms and personnel join forces and form a partnership, if only temporary?
Morover, a state owned Chinese firm competiting against a local firm(s). An emerging super power competiting against a local company. Interesting. Will the Chinese firm hire local sub contractors, employ local construction personnel, buy local material, rent local equipment..........etc.
Will any airline(s) commit to direct flights into and out of TBLIA? Based on basic airline economics, no airline will start a route or continue on a route if its minimum passenger load factor is not attained and maintained. The only how this will happened is if the city, town, island, country.........etc supplement the flight. There is fixed cost to every take off and landing that must be covered either with frieght or paying passengers. But an airlines needs to do more than to break even. Its key metric is passnger load factor.
Moreover, it was a capital project, Kenneth Bates-Hill one sided deal to develop Wickhams Cay and 3/4 of Anegada, spawn the birth of Positive Action Movement (PAM) that was led by national hero Noel Llyodd. The people won. It was Dolph Faulkner the led the Great March in 1949 for representation. The people won. If the people are not satisfied with this project, they may want to peacefully agitate their disapproval. On the other hand, those that approve can also agitate for it.
The locals will not be getting a chance to work on that project, they will be on the outside looking in.
Can someone assist me please?
Are some government's ministers putting their personal legacy ahead of the public good? Has government listened to the warning of the acting Accountant General? Or are they strategizing how to victimize her? Is the VI debt load increasing? Can the VI afford this project and increase of the debt load? Does not this project increase the debt load approximately 150%? Was/is any serious consideration given to modernizing the ferry system? Was any serious consideration given to modernizing and linking the transportation network: air-ferry-ground transportation? Was this a "done deal" from inception?
Do citizens and visitors want direct flights from major international cities, i.e., NY, London, Miami, Buenos Aires, Dallas.....etc? Do residents and visitors like the convenience of direct flights? Yes. Will they start and be sustained without the consistent passenger load factor? Does the huge capital investment worth the return on investment? How will the $154M+interest be paid for? How long will be the payback? What is the cost per person for this investment? Is the extension just a show piece, national bragging rights.........etc? Is it mostly for national pride? What does the majority of residents think about the expansion and cost? Have they been given a real opportunity to way in? Are they willing to pay the cost? Have they been apprised on the basics of airline economics?