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 that this amount is approximately $3 million higher than the bids submitted by other reputable contractors, with reports indicating that competing quotes were all under $6 million.
He highlighted that the lowest bid was $5.2 million, offering a project duration of 54 weeks, while Pacific Building Solutions proposed a timeline of 21 months. Chaudhry questioned the rationale behind awarding the contract to PBS when the other bids were based on the same project specifications.
One unsuccessful bidder has contacted the airport’s authority seeking clarification on the decision, but Chaudhry noted that no written response was provided. He emphasized that as a state-owned entity, all transactions by AFL must maintain transparency and accountability, especially since private companies typically disclose their bidding processes.
The project involves the construction of a temporary terminal at Labasa’s Waiqele Airport, allowing for the demolition of the existing structure and the construction of a new terminal with separate arrival and departure areas. According to the agreement with PBS, construction on the temporary terminal was slated to begin in the first week of October 2024 and be completed by January 2025. However, Chaudhry pointed out that as of mid-October, there has been no visible construction activity, raising questions about delays.
The new terminal building’s construction is anticipated to start in January 2025 and be finished by June 2026, a timeline that could be jeopardized if the temporary terminal is not completed as scheduled.
Chaudhry recalled that PBS was also involved in the Nadi Airport modernization project in 2013, which originally was projected to cost $105 million and be completed by October 2015, but was ultimately finished in June 2018 at a cost of $130 million, resulting in a significant delay and cost overrun.
He has urged the Prime Minister’s Office to conduct an investigation and provide explanations, stressing the need for accountability from AFL.