Monday, September 3rd, 2012 Airport Expansion Project

, I left the Territory on August 18, 2012 and travelled to Europe; accompanying me was the Executive Director of the British Virgin Islands Airports Authority Limited (BVIAA Ltd.) Mr. Denniston Fraser, Member of the Board of Directors, Mr. Clyde Lettsome, Project Manager, Mr. Winston Wilson and my Private Secretary, Mrs. Michelle Bhajan. The purpose of this trip, Madam Speaker, was to explore contemporary and environmentally friendly designs for the runway extension and the Fixed Base Operations (FBO) of the Terrance B. Lettsome International Airport.

The first leg of the trip took us to the Portuguese Island of Madeira where we were given technical briefings on the extension of the Madeira airport by engineers and other airport officials. Madam Speaker, the island of Madeira’s economy is primarily based on tourism; it has a fixed population of 270,000 and with over 3.2 million passengers per year passing through its airport.

Madam Speaker, the significance of this visit was to understand the technology used in the relatively recent runway extension which was completed in September 2000. The Madeira runway, with the extension, has a total length of 2781m (9124 ft.). The 1024m (3359ft) extension which was completed in two phases, due to the unique challenges of the site, was done entirely on reinforced concrete columns of varying heights with the tallest ones being approximately 54 m (177 ft.)

Madam Speaker, the nature and scope of this project is similar to the challenges we face at the Terrence B. Lettsome International Airport though the scale in Madeira is approximately 10 times greater. Again, we have similar geography, but our safety issues are considerably less due to our mostly seaward approach flight path.

The island of Madeira was faced with a number of issues similar to the ones we currently face; problems the likes of finding enough fill to complete the embankment, and negative environmental impact. These problems were resolved by employing a bridge structure as the solution; this is the same type of solution that we are contemplating employing in the extension of the runway at Terence B. Lettsome International Airport.

Madam Speaker, I believe that there will be much benefit derived from continuing collaboration between our technical team and that of the Funchal Madeira Airport Authority. It is anticipated that technical corporation and liaison will be deepened as our project develops.

Madam Speaker, the second leg of the trip took us to the Italian island of Sardinia which is located about 150 miles off the coast of Italy. Here the delegation met with Airport Officials who facilitated a guided tour of the Olbia Costa Smeralda Airport. The runway at Costa Smeralda Airport is approximately 8,000 feet in length and currently accommodates up to the Boeing 767 aircraft.

However, there are plans for an extension in the immediate future in order to increase safety. The main focus of this section of our travels was to observe the operational details as it combines (although separate) commercial and general aviation services in an exceptional manner and significant international best practices.

Madam Speaker, the delegation had a tour of the main terminal at the Olbia Airport which is managed by the management company Geasar. The Olbia Costa Esmeralda Airport has been one of the first Italian Airports to be certified under the ICAO Annex 14 and European Regulation. With retail and commercial spaces, including food and beverage, the Airport is developing itself into a little city; and Madam Speaker you would be intrigued to know that the Airport has a university on site; concentrating in an economic programme for over 900 students.

Madam Speaker, in Olbia, we noted with primary interest the State of the Art General Aviation facility, operated by Eccelsa Aviation, a Fix Based Operation which has won many regional and international awards. Eccelsa Aviation is a young and dynamic organization whose success is based on teamwork, integrity, and commitment to customer satisfaction.

The BVI will do well if we can take a page out of Costa Smeralda’s book especially when it comes to Fix Base Operations. It is a given that in the BVI we must improve air access. But in doing so, Madam Speaker, we must also improve the quality of service that we give our customers at the airport. That quality should extend to commercial travelers (those travelling on the commercial aircrafts), as well as those travelling on private flights.

Not only should we extend our arrival and departure halls for commercial passengers but we must build and ensure that proper facilities are in place for our private customers that require the use of our aerodrome.
As we build this great little nation it is imperative that international best practices are instituted.

Madam Speaker, We need a meteorological office where both commercial and private pilots can file their flight plans and obtain the latest weather and forecast for their destination, we need a facility where private passengers can relax or shop in comfort as they await their departure. Madam Speaker, I believe that having a facility outfitted with modern conference facilities will also prove beneficial as we seek to offer more to the business community.

Madam Speaker, officials from the Costa Smeralda Airport have extended much useful information and now have presented themselves as allies with the BVI for further exchange of information as we develop our local Airport. They have pledged to work with the BVI as we continue our development and we expect to learn from their shortfalls; and ensure that we would have the best possible product to match the needs not only for our airport but the needs for the future of aviation in the BVI; ensuring that we remain the high-end tourist destination that we are. The airport project when completed must be a part of the “WOW” factor that it the BVI brand.

Madam Speaker, we are now in the second phase of the procurement process, the Request for Proposal (RFP) stage which we hope to conclude by the end of September 2012. During this stage, qualified companies will be issued an RFP with detailed Terms of Reference (TOR) and then be required to submit final detailed and commercial proposals for the planning, design, financing, and construction of the project.

There were a total of seventeen submissions to the Expression of Interest (EOI) from around the world. These included EOIs from three governments, namely, the Government of Canada, the Government of the Netherlands and the Government of China.

The prequalified organizations coming out of the Expression of Interest (EOI) stage are,
1. Sir Robert McAlpine (Holdings) Limited (Grand Cayman)

2. China Communication Construction Company Limited (China)

3. IDL Group (Canada) in consortium with ADC Company (BVI)

4. GLF Construction Corporation (USA)

5. The Walsh Group (USA)

Madam Speaker, the companies listed all met the following, including others, requirements for qualification. These are;
1. Conformation of the firms interest to be considered for the RFP stage

2. Technical capacity to design, construct, finance, a civil aviation airport

3. Achieved a minimum total annual turnover over the last three years on design and construction works of at least US$100 million dollars.

4. Successful track record of timely completion of projects

5. Statement that the firm is in good financial order

6. Annual financial statements for at least three years

7. Litigation history

8. Local content and transfer of technology opportunities

Madam Speaker, as Minister responsible for the subject, I met with the prequalified companies on Friday August 31, 2012 at the Central Administration Complex in the first RFP conditioning meeting where I stressed the importance of this project being completed on time, on budget, with the greatest “WOW” factor and the highest degree of integrity. After this meeting, they were given a tour of the Terrence B. Lettsome International Airport by the Chairman of the Board of the British Virgin Islands Airport Authority, Mr. Glenn Harrigan and the Project Manager, Mr. Winston Wilson.

Madam Speaker, it is our hope that by the end of October 2012 we hope to complete all of the negotiations, including presentations to Caucus and Cabinet after which decision can be made to appoint a lead contractor or consortium leader and then move to the construction stage in January 2013.

Thank You

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