Former Prime Minister Mahendra Chaudhry has expressed his concerns regarding the allocation of an $8.6 million contract to Pacific Building Solutions for the construction of a new terminal at Labasa Airport. Chaudhry claims that this figure is approximately $3 million higher than the bids submitted by other reputable contractors.
According to Chaudhry, reliable sources indicate that all other bidders offered quotes below $6 million. He pointed out that the lowest bid was $5.2 million, which included a project duration of 54 weeks, whereas PBS proposed a timeline of 21 months.
Chaudhry questioned the reasoning behind the contract award to PBS, noting that the other quotations were based on the same plans as those priced by PBS. He mentioned that one unsuccessful bidder had reached out to the Airports Fiji Limited (AFL) for clarification regarding the awarding process but did not receive a written response.
“AFL, being a state-owned enterprise, must ensure that all transactions are conducted with transparency and accountability. If private companies can delineate the bidding process, AFL has an even greater obligation to do so, given its accountability to the taxpayers,” Chaudhry stated.
The project entails constructing a temporary terminal at Labasa’s Waiqele Airport while the current terminal is demolished and a new facility developed with distinct arrival and departure sections. Chaudhry noted that, under the agreement with PBS, work on the temporary terminal was scheduled to commence in the first week of October 2024 and conclude by January 2025.
As of now, two weeks into October, he observed that there has been no visible construction activity at Labasa Airport. “What is causing the delay?” he asked. The construction of the new terminal is projected to begin in January 2025 and is expected to be completed by June 2026, with potential delays if the temporary terminal is not finished on time.
Additionally, Chaudhry recalled that PBS was involved as a joint partner in the Nadi Airport modernization project back in 2013, which was initially projected at $105 million but ultimately concluded in June 2018 at a total cost of $130 million, resulting in a $25 million overrun and a delay of nearly 29 months.
Chaudhry urged the Prime Minister’s Office to investigate the situation and hold AFL accountable for its actions.