Gov’t could face legal action over port project delays
According to the contract with Government and NCL, NCL has the right to terminate the deal if the construction as outlined in the agreement is not completed by December 2015.
The Government on behalf of the BVI Ports Authority inked what they called, the 15-year deals with Disney Cruise Line (DCL) and Norwegian Cruise Line (NCL) on January 17, 2014, which they claimed offered preferential berthing rights to the two companies and guarantees the territory some 425,000 passengers on a yearly basis.
The extended but incomplete cruise pier was opened on April 29, 2015 and welcomed the 153,000 ton Norwegian Getaway, which made its inaugural visit to the Virgin Islands, bringing some 4,000 passengers to the territory, hundreds of which streamed into the newly built passenger terminal and welcome centre.
The Norwegian Getaway visits the territory each Wednesday, but according to reports, the vessel was not paying its full $15 per passenger tax but rather been paying only $7.
There have been speculations as to why this is the case, with the most popular one being that the cruise line is taking its stance against the project hiccups, including the landside development not yet completed or completed according to the initial agreement.
The BVI Ports Authority (BVIPA) had confirmed via a press release in July that NCL was only paying $7 tax per passenger and that the arrangement was expected to continue until October 1, 2015. It is not clear if this arrangement has since changed.
More delays
It was only on October 8, 2015 that Minister for Communications and Works, Hon Mark H. Vanterpool said that work on the almost two-month delayed landside development of the Cruise Pier Project was progressing nicely; suffice to say the project was hit with yet another snag in its time-line for completion.
It was previously made public that at the end of October 2015 the cruise pier and landside development project would have been complete and ready for a grand opening which would have featured the arrival of at least two large cruise ships.
However, while not giving any reasons for the shift in the opening date to December 22, 2015 Hon Vanterpool stated, “On that day we’ll have the first arrival of the new (Disney Dream) with 4,000 passengers approximately and on that day also on the other side of the dock we’ll be having a new ship coming, MSC company, this is also a 4,000 passenger ship.”
The Works Minister said his government is looking forward to the opening as a ‘nice Christmas gift’.
No significant financial impacts?
Meanwhile, Hon Vanterpool had said the delay in the completion of the dock itself was not going to impact significantly on the arrival of ships but admitted there would be some financial impacts as a result, although he did not specify what they were likely to be.
“I am sure there will be some financial aspects [that will] be affected but it’s not going to be significant from our point of view,” stated Hon Vanterpool.
So far the Government of the Virgin Islands has chalked up in excess of $50m in loans for the project and with the further delay one questions whether there would be the need to seek more money to realise the new targeted completion date.
The controversial Ports Development Project, which escaped a Commission of Inquiry as suggested by Auditor General Ms Sonia M. Webster and strongly requested by the Opposition in the House of Assembly, has been one that has been hit with widespread challenges, including financing, frequent delays to some contractors not laying off and not paying workers in a timely manner.
The biggest challenge for Government, however, is meeting the December 2015 deadline, aware of the already many frequent delays and the knowledge that it could face legal action, and worse- the 15-year berthing agreement signed with NCL and Disney Cruise Line could be scrapped.
In January 2015, Managing Director of the BVI Ports Authority Claude O. Skelton-Cline, speaking about the three-month delay in the cruise pier project ahead of its April 29, 2015 opening had said the last thing the territory wanted was to lose the berthing agreements and so every effort was being made to achieve the timeline.
“We are the envy of the region; no other territory in our region in cruise tourism has a 15-year agreement with two of the largest cruise lines in the entire industry. And so we by no means want to see this [agreement] go away. So, we are working with diligent haste in ensuring this development comes to fruition,” Mr Skelton-Cline stated on a GIS television programme.
It’s also important to note that all disputes in the berthing agreement can only be settled in the USA and the Virgin Islands legal system has no standing on the controversial agreement signed a few years ago.
Efforts by Virgin Islands News Online to get a comment from NCL and DCL on the project delays were not successful.
No legal actions indicated so far
Public Relations Officer for the Ports Development Project, Meslyn M. Allan said, however, that none of the cruise lines have indicated any interest in taking legal action over any "assumed" delays.
"We have weekly meetings with both cruise lines and they are well up to date as to what is taking place and the progress that we are making so far, and of course we are in preparations for the grand opening on December 22nd, [2015].
Asked about whether the arrangement, which was seeing NCL paying $7.00 per passenger tax as against the expected $15.00, Ms Allan said she was not up to date with that information and could not say whether that arrangement is still in place or what is the arrangement going forward.
Meanwhile, a spokesperson for Disney Cruise Line said DCL was looking forward to its first visit in December.
"There has been no adverse situation created [by the project delays] and we are looking forward to our first visit on December 22 and believe the guests will have a great experience," the spokesperson said.
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23 Responses to “Gov’t could face legal action over port project delays”
I am not at all surprised nor do i give them any wrong, if you signed a contract on something of this magnitude needed more than the half @$$ work they putting in, knowing what was up they had no common sense authorizing all this road work that will no doubt prolong the process even more.. We salt tho..
What about the lady that work Ports Boy friend that gotten a 3 million dollar contract for small drainage
What about the land she bought cash after she bought the house jail them
To much friends and family getting hired at Ports
Look at who build house and who buy house
Look at the salary they getting look at the raise some of them get in a short space of time some of them just driving golf kart when ship come when they suppose to be in office.. That man and gang needs a jail trust me