Sinanan: We saved US$319m on new Tobago airport

Minister of Works and Transport Rohan Sinanan said the Government is saving US$319 million on the cost of the new airport in Tobago simply by re-tendering the contract.

In the Senate on Tuesday, he replied to a question by Opposition Senator Wade Mark on why requests for proposals had been cancelled for the new ANR Robinson International Airport. He said in November 2018 Nidco issued an RFP to build a new terminal and upgrade the old one, using a design/finance/construct model. Tendering ended in March 2019.

“Only one bidder submitted a proposal. Nidco entered negotiations with the bidder but it was determined that the price offered by the bidder was much too high and that this was in part due to the cost of obtaining finance from the contractor.”

That tender price was US$182 million, or $1.24 billion.

The Ministry of Finance, as client, advised to cancel the RFP due to the high price and single proposal received.

Sinanan said, “The project should be re-tendered to be financed by the Government of TT instead of the contractor.”

In June 2019, Nidco pre-qualified five bidders and re-tendered the project as two separate contracts for the new and old terminals,respectively. Both were to be funded by the State by a loan from the CAF Development Bank.

Only one bidder submitted a proposal, bidding to do the two projects for US$136 million.

“This was US$46 million lower than the previous combined price, resulting in a reduction in price of $319 million, as a result of the wise decision to cancel the 2018 RFP process, and re-tender.”

Sinanan said the new price lined up to within one per cent of the original engineer’s estimate of US$134 million for the project. Mark asked the name of the new, successful bidder.

Sinanan did not have the name at hand and told Mark to file a fresh question.

Sinanan said, “This minister does not get involved in the bidding process.”