On Monday, at a cottage meeting in Las Lomas, Opposition Leader Kamla Persad-Bissessar made a number of alarming allegations concerning cost overruns and delays on the construction of the ANR Robinson International Airport in Tobago.
Mrs Persad-Bissessar read from documents indicating that the original sum for the construction of the new airport, an upgrade to the existing airport and associated works was $912.03 million (US$134.12 million). Added to this sum was $74.77 million for the original consultant, CEP Ltd, and the project manager, Nidco, as well as an allocation of $300 million for land acquisition in the Crown Point area. The total project cost, according to the Opposition politician’s calculations, was $1.286 billion (US$189.23 million).
In a report commissioned by the Ministry of Finance, but paid for by the development bank, CAF, the international construction consultants, Mott MacDonald, said the original cost of the airport project would be US$148.954 million ($1.01 billion) and would take 24 months.
“There are also a number of claims to be resolved and cost overruns taking the projected cost to US$192.353 million (US$1.308 billion),” according to the Mott MacDonald report, which was based on an on-site visit to Tobago and Trinidad in December 2023 and video conference calls in January 2024. That is a projected cost overrun of close to $300 million or about 29 per cent.
Principal among the allegations made by Mrs Persad-Bissessar is that the cost of the construction of the new airport in Tobago is $431.16 million over budget. It is now for the former prime minister to explain the difference between her estimate of cost overruns this week and those made by the consultants she cited on Monday.
The second main point made by Mrs Persad-Bissessar is that the project is suffering from delayed delivery of 1,127 days. That is more than three years.
That assessment seems to ignore the fact that the official signing of the Government’s contract with China Railway Construction (Caribbean) Ltd took place on January 28, 2020 and that T&T, and much of the world, would have been locked down from March of that year. Surely, the COVID-19 restrictions would have impacted the construction timeline of the Tobago airport.
Given the Government’s prognosis that the next two years are going to be “challenging” and “difficult” for the population of this country, any allegations of cost overruns have to be thoroughly and completely addressed by the Government.
In a statement last night, Prime Minister Dr Keith Rowley acknowledged “there have been some elements of variation” in the execution of the airport construction project, which he said “is not uncommon in projects of this size and scope.”
Dr Rowley also said the Government “is in a position to justify every cent that it takes to establish the facility,” and that Minister of Finance Colm Imbert will report soon on the financing and operations of the project.
The nation looks forward to the accounting and transparency implicit in the Prime Minister’s statement and hopes the clarifications and justifications come sooner rather than later.
The completion of the airport in Tobago is expected to boost interest by hotel developers in constructing new first-class hotels on the island. The airport, therefore, is crucial to the development of the tourism sector in Tobago and to the diversification of the T&T economy and it ought not to be shrouded in allegations of cost overruns.