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 the bids submitted by other reputable contractors, which he states were all below $6 million.
He pointed out that the lowest bid was $5.2 million, with a proposed project duration of 54 weeks, while PBS submitted a timeline of 21 months. Chaudhry questioned the rationale behind the award to PBS, emphasizing that the other bidders based their proposals on the same plans used by PBS.
Chaudhry noted that one of the unsuccessful bidders sought clarification from the Airports Fiji Limited (AFL) regarding the decision to award the contract to PBS, but reportedly received no written reply.
He highlighted the importance of transparency and accountability for AFL, a state-owned company, suggesting that if private firms can provide bidding details, AFL should be even more obliged to do so as it is accountable to taxpayers. The project includes the construction of a temporary terminal at Labasa’s Waiqele Airport while the current terminal is demolished and a new one built, featuring separate areas for departures and arrivals.
According to the agreement with PBS, construction of the temporary terminal was slated to begin in the first week of October 2024 and be completed by January 2025. However, Chaudhry noted that as of mid-October, no construction activity has been observed at Labasa Airport and questioned the cause of the delay.
The new terminal project is expected to commence in January 2025 and conclude by June 2026, though further delays may ensue if the temporary structures are not finished on schedule. Chaudhry recalled that PBS was also involved in the modernization of Nadi Airport in 2013, a project that faced significant cost overruns and delays.
He called on the Prime Minister’s Office to investigate the matter and ensure that AFL is held accountable.