Former Prime Minister Mahendra Chaudhry has expressed his 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 contract is approximately $3 million higher than the bids submitted by other reputable contractors.
He stated that he has reliable information indicating that the quotes from other bidders were all under $6 million. The lowest bid was $5.2 million, which also proposed a project duration of 54 weeks, significantly shorter than the 21 months suggested by Pacific Building Solutions.
Chaudhry questioned the criteria used by the Airport Fiji Limited (AFL) to award the contract to Pacific Building Solutions when other bids were based on the same project specifications. He noted that one unsuccessful bidder reached out to AFL to seek clarification on the contract award but received no written response.
He emphasized that since AFL is a state-owned entity, all its dealings should be transparent and accountable, highlighting the expectation that it provides a breakdown of the bidding process, especially since private companies do so.
The project includes the construction of a temporary terminal at Labasa’s Waiqele Airport, while the existing terminal is demolished and a new one is built with designated departure and arrival areas. Chaudhry pointed out that under the agreement, the construction of the temporary terminal was set to begin in the first week of October 2024, with completion slated for January 2025. He raised concerns about the lack of visible construction activity at the airport two weeks into October and questioned the reasons for the delay.
The new terminal building is expected to start construction in January 2025, aiming for completion by June 2026, although this timeline could be jeopardized if the temporary structures are not completed on schedule.
Chaudhry also recalled that Pacific Building Solutions was involved in the modernization project at Nadi Airport in 2013, which had a projected cost of $105 million and was scheduled for completion by October 2015. Ultimately, the project concluded in June 2018 with a total cost of $130 million, reflecting a cost overrun of $25 million and a delay of nearly three years.
He urged the Prime Minister’s Office to investigate this matter thoroughly and ensure AFL is held accountable.