Former Prime Minister Mahendra Chaudhry has expressed concerns regarding the awarding of an $8.6 million contract to Pacific Building Solutions (PBS) for the construction of a new terminal at Labasa Airport. Chaudhry claims that this contract is approximately $3 million higher than bids submitted by other qualified contenders.
He noted that bids from other participants were all below $6 million, highlighting that the lowest bid was $5.2 million with a proposed completion time of 54 weeks, compared to PBS’s bid which included a 21-month timeframe.
Chaudhry questioned the rationale behind awarding the contract to PBS given the significant cost difference, especially since the quotations from other bidders were based on the same project plans as those provided by PBS. He mentioned that an unsuccessful bidder had approached Airport Fiji Limited (AFL) for clarification on the award decision but received no written response.
Chaudhry emphasized the need for transparency and accountability in transactions conducted by AFL, a state-owned company, and argued that if private entities can provide a breakdown of their bidding processes, AFL must also do the same, as it is accountable to taxpayers.
The project involves constructing a temporary terminal at Labasa’s Waiqele Airport while the existing terminal is demolished, followed by the construction of a new terminal with separate arrival and departure areas. According to the agreement with PBS, the construction of the temporary terminal was slated to commence in the first week of October 2024, with completion expected in January 2025. However, Chaudhry pointed out that as of mid-October, no construction activities had started at the airport, raising questions about potential delays.
The timeline for the new terminal building is projected to begin in January 2025, aiming for completion by June 2026, which could be further postponed if the temporary structures are not completed on schedule.
Chaudhry recalled that PBS was also involved in the modernization project at Nadi Airport in 2013, which was initially estimated at $105 million but ultimately finished in June 2018 at a total cost of $130 million, reflecting a cost overrun of $25 million and delays of nearly three years.
He urged the Prime Minister’s Office to investigate the matter and ensure that accountability measures are put in place for AFL.