Former Prime Minister Mahendra Chaudhry has expressed concerns regarding the awarding of an $8.6 million contract to Pacific Building Solutions for the construction of a new terminal at Labasa Airport. Chaudhry claims this amount is approximately $3 million higher than proposals submitted by other reputable bidders, which he states were all under $6 million.
He pointed out that the lowest bid was $5.2 million, with a proposed project duration of 54 weeks, compared to the 21 months estimated by Pacific Building Solutions. Chaudhry questioned the basis on which the contract was awarded to Pacific Building Solutions, emphasizing that the other bids adhered to the same specifications.
One of the unsuccessful bidders has reportedly reached out to the Airport Fiji Limited (AFL) for clarification on the selection process but has not received a satisfactory written response. Chaudhry highlighted that as a state-owned entity, AFL’s transactions should be transparent and accountable, suggesting that if private companies can disclose their bidding processes, AFL should be expected to do the same considering its accountability to taxpayers.
The project involves the construction of a temporary terminal at Labasa’s Waiqele Airport while the existing terminal is demolished and a new one is built, featuring separate areas for departures and arrivals. Under the agreement, work on the temporary terminal was scheduled to commence in the first week of October 2024 and finish by January 2025. However, Chaudhry noted that, as of mid-October, no construction activity has been observed at the airport, raising questions about potential delays.
The new terminal building is planned to start construction in January 2025, with completion expected by June 2026—a timeline that could be further affected if the temporary facilities are not finished on schedule.
Chaudhry recalled that Pacific Building Solutions was involved in the modernization project at Nadi Airport in 2013, which initially had a budget of $105 million and was expected to be finished by October 2015. Instead, it concluded in June 2018 for $130 million, representing a cost overrun of $25 million and nearly a three-year delay.
He urged the Prime Minister’s Office to investigate the matter, calling for measures to ensure AFL’s accountability.