China Railway First Group (CRFG), responsible for constructing the FHL Tower in downtown Suva City, has submitted variation claims totaling $40 million to Fijian Holdings Ltd (FHL). This amount represents nearly 60 percent of the original agreed-upon cost due to disruptions caused by the COVID-19 pandemic, according to FHL’s CEO Jaoji Koroi. He addressed concerns raised by shareholders at the company’s annual general meeting in Lami.
Mr. Koroi clarified that the initial budget for the FHL Tower was set at $62 million. During the peak of the pandemic, many construction firms halted operations worldwide; however, FHL chose to continue its partnership with CRFG. As a result, CRFG presented a variation claim for an additional $40 million. After thorough examination, FHL determined that only $12.5 million would be paid for these claims, leading to an updated total of $74 million approved for CRFG.
Koroi emphasized that the notion that the project’s cost had doubled was incorrect. He also shared optimistic news, stating that FHL has received Letters of Intent from potential tenants for 85 percent of the building, highlighting its significance as the company’s “single largest investment” made over the past six years.
This project’s trajectory demonstrates resilience during challenging times and a strong demand for the tower despite the hurdles faced. By successfully securing interest from potential tenants, FHL is positioned to turn the situation around and ensure the project’s profitability moving forward.
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