No official start day for construction announced
BASSETERRE, St. Kitts – THE Team Unity Government today (Nov. 22) signed off on an agreement to begin construction on the long-awaited second pier to accommodate cruise vessels.
At a signing ceremony this morning in the conference room of the Ocean Terrace Inn, the Government inked the agreement along with officials from the National Bank, the Canadian Commercial Corporation (CCC) and the Canadian Ambassador to St. Kitts and Nevis, but no date was given as to the commencement of the project.
Since it was made public knowledge that the Government expects the project to be completed in time for the 2019 cruise season, this publication however sought a definitive start date from an official of the contracting firm, CCC, who indicated that they are still in the mobilization process.
“I am fairly optimistic that we can mobilize early in the new year, if not sooner. But, I can’t give you a date until we have the financing in place. That is the requirement and the 18-month process from once we mobilize,” said CCC’s Regional Director Luc Allary.
Minister of Public Infrastructure, Hon. Ian Liburd added that the Government was assured by its major financier “that once this contract is signed, then interim funds would be disbursed. The implementation schedule or the schedule of works that I saw provided for mobilization to be a three-month period maximum”.
The long-awaited project is estimated to cost US$43M, with the Government expected to raise US$48M to conduct additional work on Port Zante – US$34Kfrrom the National Bank, US$7 from Social Security, US$5M from the Sugar Industry Diversification Foundation and US$2M from TDC Group of Companies..
At the ceremony, Minister Liburd stated that discussions on the second cruise pier started in April 2012 under the former administration.
But at that time, the Dr. Denzil Douglas-led Labour Administration had estimated work on the pier to cost approximately US$32M.
Minister Liburd however claimed that the agreement entered into by the Labour Government would have seen the pier being owned by a private company for close to 30 years.
Dr. Douglas had criticized the Minister Liburd and the Team Unity Administration on the increase in cost of carrying out the project, which is more than they had estimated.
But Liburd responded to the criticisms by noting that the increase in cost could be justified.
“…there has been much chatter about the increase in construction cost from US$32 million in 2012 to $43.2 million today. I wish to submit that the increase is justifiable.
“Firstly, five years have elapsed from 2012 to 2017, so no reasonable business mind can expect the cost to remain stagnant. The rationale behind the changing cost is well documented. There were many inefficiencies within the original designs cited in the review by a well-renowned engineering company. CH2 M. Hill citied the fact that dependent on the weather only one ship would have been able to berth at the pier, because of the imbedded rock on the starboard side.” 41:55
The Minister disclosed that there was a rigorous due diligence process of the two construction proposals, noting that Cabinet had approved the approach of CCC “as the prime contractor of the second cruise pier and this decision was made in May of 2017”.
Against that backdrop, it was revealed that the St. Christopher Sea and Air Ports Authority’s (SCASPA) team spent close to five months negotiating the terms and conditions of the contract.
SCAPSA, the Minister revealed, had contracted two regional firms to carry out review – one from Barbados and the other out of Trinidad and Tobago.
Additionally, the Office of the Attorney General had played its part in reviewing the contract before it was signed.
“Without a doubt, following this process, SCASPA must be confident that it now has a construction contract, which is capable of withstanding any and all public scrutiny and a legal guarantee from the Canadian Government that the pier will once again be built fit for purpose,” Minister Liburd said.
Based on the estimates, the Government is adamantly looking at the 2019 cruise season to have the new facility operational.
According to the contractors, they have already taken into consideration the rainy/hurricane season in carrying out the work for the expected 18-month period.
