FINANCE Minister Colm Imbert said the government is allocating up to an extra $35 million (US$5 million) for unforeseen costs on the new terminal at the ANR Robinson International Airport in Tobago, on top of $17.5 million (US$2.5 million) already agreed.
He addressed a briefing at his ministry in Port of Spain on December 6, after he had addressed the issue at a post-Cabinet briefing the day before at Whitehall, Port of Spain.
At both occasions, he denied allegations by the opposition of huge cost overruns of hundreds of millions of dollars.Opposition Leader Kamla Persad-Bissessar stood her ground on the claims in a statement on December 6.
At his latest briefing, Imbert blamed the actual extra costs on delays – caused respectively by the covid19 pandemic and by the process of land acquisition – and on the need to amend the airport design to strengthen it against climate change, including some retrofitting of structures.
Imbert gave reporters a letter by international programme managers Gleeds TT Ltd saying ongoing revisions of costs and timelines were entirely appropriate for complex schemes.
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The contract Nidco awarded to China Railway Construction Co Ltd to build the airport was about $918 million (US$134 million), according to Cabinet Note 2199, dated November 2024. This note also listed $27 million paid to CEP Ltd for oversight and supervision services and $47 million to Nidco as project-management fees.
Imbert scoffed at the opposition's claims that Nidco's first consultant engineer, CEP, had been fired because of any alleged unwillingness to be a rubber stamp on decisions made by China Railway.
Instead he said CEP's initial contract had come to the end of its contracted period and for a second contract its quoted price had allegedly been too high, at which another firm was engaged – Arun Buch and Associated Ltd – followed by KS&P.He said CEP had approved a non-objection to China Railway's initial design done using incumbent international standards, but these had been upgraded to counter climate change, as advanced by Arun Buch.
Imbert said the upgraded design catered for climate-change effects such as increased wind sheer on the building."The building is more robust than intended."
Reading a letter dated December 6 from Nidco to himself, Imbert noted project delays due to covid19 and land acquisition.
He also quoted Nidco saying Buch had considered the airport design too physically flexible and in need of reinforcement. Buch had cited the extensive curtain wall, height of the building, roof's wave profile, extensive eave overhang and tall masonry walls sitting on suspended floors.
Building A's and Building B's foundations plus Building A's structure had to be retrofitted, for which the employer (Nidco) had agreed to pay China Rail compensation.However ,for Building B's and Building C's structural designs and Building C's foundation, China Railway claimed compensation, but that claim has not yet been decided, the Nidco letter said.
Otherwise, an explanation for the $17.5 million (US$2.5 million) already agreed as cost overruns was given in the Cabinet Note. This recommended all payments for variations categorised as "approved, instructed and anticipated" totalling US$14.4 million ($100.8 million) be paid to China Railway, from the contingency fund of US$11.7 million, leaving a balance of US$2.5 million.Also, the finance ministry (from its budgetary allocations) has provided US$5 million ($35 million) for "any other project risks (variations) that may arise, subject to proper justifications."
The Cabinet note said $1.16 million was approved to reinforce the concrete pavement over the fuel hydrant pipeline."Also there is the possibility of other project risks, which are yet to be determined, and in an attempt to address these risks Gleeds had projected the sum of approximately US$4 million ($28 million) as the most likely income."
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The document listed known claims. These were US$15 million ($105 million) advanced to China Railway, $11.5 million to Acuitus for oversight, US$776,244 ($5.43 million) to its airport technical adviser Zabir, and ACQ and Associates being now owed $1.8 million.
Imbert said the cost to China Rail due to delays in land acquisition on which to build the airport had been $5 million a month. Chiding the Tobago House of Assembly (THA) leadership for supporting an extension of the land-acquisition process for six months (at $5 million monthly), Imbert noted, "That is $30 million you are talking about!"
In the question session, a reporter asked about additional claims to the US$2.5 million Imbert mentioned on Thursday.He replied that only US$2.5 million had been approved for payment, but the other claims have not been settled. Otherwise he said he had heard nothing to indicate CEP was disgruntled and he wondered where such a narrative had arisen.
Imbert said the due date of completion of the airport was March 31, 2025. He said China Railway had so far been paid $593 million and was owed $282 million, making a total of $875 million.
