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 cost is approximately $3 million more than quotes submitted by other qualified bidders.
According to Chaudhry, the bids from the other contractors were all below $6 million, with the lowest bidder proposing a project duration of 54 weeks at a cost of $5.2 million, in stark contrast to PBS’s proposal, which was for a duration of 21 months.
He questioned the rationale behind the Airports Fiji Limited (AFL) awarding the contract to PBS at such a significantly higher price, especially since the competing bids were based on the same project specifications.
One of the bidders that did not secure the contract has reached out to AFL, requesting an explanation regarding the selection process, but claim they did not receive any written response.
Chaudhry emphasized that AFL, being a state-owned entity, should ensure transparency and accountability in its operations. He argued that if private companies can provide detailed information on their bidding processes, AFL should do the same as it is accountable to taxpayers.
The project involves building a temporary terminal at Labasa’s Waiqele Airport while the existing facility is demolished and replaced with a new structure featuring distinct departure and arrival areas. Under the agreement, construction of the temporary terminal is set to commence in the first week of October 2024 and conclude in January 2025.
As of now, there are no visible signs of construction activity at Labasa Airport, prompting Chaudhry to question the delay. The timelines for the new terminal building project are also at risk, with work expected to start in January 2025 and be completed by June 2026, further complicated if the temporary structures are not ready on schedule.
It is worth noting that PBS was previously involved in the modernization project at Nadi Airport in 2013, which was originally budgeted at $105 million and scheduled for completion by October 2015. However, it concluded in June 2018, costing $130 million and experiencing a delay of nearly three years.
Chaudhry urged the Prime Minister’s Office to investigate the matter and hold AFL accountable for its decision-making process.