Report: Nidco should get help to complete Tobago airport

Finance Minister Colm Imbert has not verified the authenticity of a report being circulated by the Opposition Leader Kamla Persad-Bissessar which appears to be prepared by consulting firm Mott McDonald (MML).

Persad-Bissessar referred to the document when claiming there were major problems, delays and possible corruption at the ongoing ANR Robinson International Airport expansion project in Tobago during a UNC meeting earlier this week.

Speaking at a post-Cabinet media briefing on December 5, three days after the Opposition Leader made her claims at a cottage meeting on December 2, Imbert told reporters he did not know what report they were speaking about, and that if the report was authentic, it was outdated.

The 40-page report was completed after multiple visits and stakeholder meetings, with the last site visit on January 26, 2024. The report was completed before February 15, 2024, based on timelines in the document.

In analysing the document, which was obtained from the Opposition Leader, Newsday noted Mott McDonald (MML) had proposed three alternatives for completing the ANR Robinson International Airport expansion project. These were keeping but adjusting the current structure, replacing/reinforcing the government’s agents, or replacing the design and build contractor.

In its ANRRIA Terminal Building Construction Support final report, MML said the project structure was that the National Infrastructure Development Company Ltd (Nidco) was the employer, with the Finance Ministry as the project financer, China Railway Construction (Caribbean) Company Ltd (CRCC) and Acuitas as the employer’s representative and International Federation of Consulting Engineers (FIDIC) engineer. Acuitas was hired in September 2023, prior to which Nidco occupied the role from May 2022-September 2023.

For the first option, MML said keeping the current structure of the contract meant that Nidco and Acuitas would need to actively engage with CRCC within a maximum of 45 days, address at the time unresolved claims, agree on a viable programme assessed by all parties that would not stop or cause further delays and recommit to the original contract as FIDIC Silver Book for turnkey contracting and 730 days (two years) for project completion.

MML said that option could result in the completion of the project by the first quarter of 2025. However, it said it considered the outcome highly doubtful, taking into account the project’s track record, the complexities and potential obstacles going forward that are inherent to an accelerated airport project.

The second option involved a partial replacement of employer’s roles. MML said Nidco would retain its formal contractual position as the employer of the contractor, but Nidco and Acuitas would step back from their roles as employer’s representative, which MML said had been acting as a project management office.

MML said the agency agreement would be modified to make it clear that the ultimate owner of the airport would be the government represented by the Finance Ministry and an employer’s representative reporting directly to the ministry would be employed, relieving Nidco of all responsibilities in the project outcome.

It said CRCC should be informed of the change and of the need to refer outstanding disputes to a dispute adjudication board (DAB), the re-direction of the contract to a turnkey solution and the need to introduce additional milestones for Finance Ministry confidence.

MML recommended the engagement of a strong project management company reporting directly to the Finance Ministry, such as CEMOSA from Spain, Hill International from US or Gleeds Ltd from the US.

The firm said this option would lead to delays in the project, resulting in completion after the first quarter of 2025.

The third option, which MML said would be a last resort, would be removing CRCC as design and build contractor. It said this should be done when it becomes evident that CRCC is not in a position to complete the project by the second or third quarters of 2025.

It said the Finance Ministry and Nidco would have to exercise its rights to terminate and proceed to take over the site and materials that are deemed useful for project completion, as well as taking over the intellectual property after deciding which designs are fit for purpose. It said if this option is initiated in the first quarter of 2024, the project could be completed by the third or fourth quarters of 2025.

MML said it was essential that legal advice be sought to draw up legal contracts. It emphasised that its advice should not be misconstrued as legal advice.

It said achieving the project in 400 days would require radical changes in the way the project is carried out. It said the project delivery intensity now needed to be even higher than originally foreseen, leading to higher risks, swifter decisions, and the simplification of the path to project objectives.

MML recommended the project management structure be reinforced/changed by appointing an international company with a successful track record of delivering Silver Book contracts and airport projects.

It said while it proposed that Nidco remain as owner, it should be removed “from the firing line” and total responsibility and control over project delivery be given to the international company, which would give an opportunity for the Finance Ministry to negotiate adequate incentives for project completion with that company.

The Gleeds Schedule Report, completed on November 22, 2024 was commissioned by the Finance Minister to seek clarification on the project schedule. Gleeds looked at the schedules of the Airports Authority of TT (AATT) and CRCC which both said activities would be finalised on June 23, 2025.

It said the date was subject to a number of risks that could move the date further, such as procurement and shipping delays, cashflow issues, delays and issues in the commissioning, testing and training period.

Gleeds said while it understood government wanted to have a soft opening of the airport early in 2025, it would prefer to wait until the contractors commissioning, testing and training period, which is currently set as March 31, 2025.

It said this would allow and help to mitigate any potential risks of further time delays surrounding the continued delays of procurement, shipping and arrival of materials to site in Tobago, along with ensuring that equipment is properly installed and working.

It said the schedules did not show when operations would transfer from the existing terminal to the new terminal, nor the date for first flight. It said an operational readiness and airport transition (ORAT) consultant would give further clarity to the authority. Delay in appointing this consultant could also contribute to the risks involved.

Gleeds said as the next steps, current cashflow issues need to be resolved and the risks around commissioning, testing and training activities for both CRCC and AATT need to be monitored and enforced closely.

It said a quantitative schedule risk analysis is to be produced to provide an outlook as to what effect risks could have on the current schedule.

CRCC was initially awarded $912 million for the terminal and associated works in 2019. On January 28, 2020, the government announced that the project would cost US$148,954,311.26, with a two-year completion date.

The project involved delays because of difficulties with land acquisition, with some families accepting payment and others being evicted.