More details emerge of giveaways to Chinese Company in airport contract
They sold that to the people of the territory and it helped them to win the 2011 general elections.
Now a few years later, many residents and voters are now crying foul and describing the NDP as nothing but “hypocrites and opportunists”, as they are now pushing aside a local company ADC who has merged with overseas interests (same setup of Ocean Conversion) to bid on the airport expansion project.
It was this news site that first and accurately broke the story on May 17, 2016 that two companies made the final list on the runway extension project. They were China Communications Construction Company (CCCC) Ltd, and IDL Group, which merged with Sir Robert McAlpine Holdings and local partner ADC of the Virgin Islands.
The Chinese company, owned by the government of the Communist regime that practice a form of state control capitalism, had no local partner at the time they bid, however, according to our senior NDP sources in a question last night they have now linked-up with a local company.
According to the Financial Secretary, Mr Neil M. Smith, the Government of the Virgin Islands will seek its own funding for the project via loans. Government also had given all companies the option of providing funding for the project in the design and build tender.
According to information received from our sources, China Communications Construction Company Ltd’s bid was approximately $154 Million and IDL Group, the Sir Robert McAlpine Holdings and local partner ADC bid, was reportedly $199 Million.
Why Chinese bid is so low!
Our newsroom has unearthed why the Chinese company's bid is so low, with some $45 Million difference. In information obtained from the bid document, China Communications Construction Company will be seeking the right to set up a full labour camp on site for their workers, reducing the number of residents working on the project, thereby setting their own rates which would likely be lower than minimum wage.
In addition, they have requested exemption from the payment of work permit fees, payroll taxes, Social Security, National Health Insurance (NHI) and even meeting the requirements of minimum wage of the Virgin Islands.
The Chinese company was also able to bid so low because they did not keep to the Government rates on equipment. In a question to the Public Works Department on rates for certain construction equipment, our newsroom was advised of standard VI rates. The Chinese company is proposing to pay a 20 yd trucks $340 a day vs $700 standard PWD rates. For Excavators, the Chinese will pay $480 a day vs $800 standard rate in the VI, according to the PWD rates. Bulldozers will be paid $328 a day by CCCC vs $1,000 standard government rate.
Additionally, the Chinese proposed to pay Cranes $1200 a day vs local standard rate of $2,500 and Barges $2,000 a day vs $5,000 standard rate.
Hypocrites & self-interest; Where are the marches?
With this information, it is clear that this particular bidder did not consider local market rates within their bid so allowing them to bid so low. While there is confusion over the airport runway expansion project, with the Government willing to give it to the foreign company over the local company, the question becomes where are those who were marching and in the same NDP rallying against the VIP over Biwater?
Where are the voices in 2010 and 2011 like Hons Myron V. Walwyn, Ronnie W. Skelton, Kedrick D. Pickering, D. Orlando Smith, Mark H. Vanterpool, along with Russel Harrigan, Bolo Crabbe and Cromwell Smith to name a few who marched and campaigned for Ocean Conversion in 2011 on the premise that it was a local company?.
A resident from East End, who gave her first name as ‘Annette’, told our newsroom in an invited comment that “it clearly shows everyone the real deal is that group had their own self-interest and they are not about what is right but what is in their own personal and political interest….How come they are not protesting the Chinese company? Is it because NDP is in, she asked?.”
Effect on the economy
Many vendors who cannot obtain payment from the NDP Administration and others who are being taken to court for owing government taxes and social security have also cried foul on this.
They have issues with an overseas bidder that will not be paying work permits, payroll tax, and social security or NHI for an extended period of time whilst our government is borrowing over $150 Million to fund this airport extension project.
They asked where the monies would come from to keep the everyday bills paid.
Our newsroom has done a quick analysis on the amount of monies that could be received by Government as work permit fees, Social Security and NHI contributions and payroll taxes on a project of this size and that number is almost $10Million. This money can keep some of the essential services going within the VI and help pay some of the lingering bills to our local contractors and vendors, as it is well established that the NDP left the country broke.
Annette asked “Is it really fair to ask our local residents to bankroll the government but when there is an opportunity for them to recoup or participate within the economic development, and we allow them to be totally shut out?”
The status of the Airport project remains unclear, with mixed signals coming out of the Dr Smith led Administration. The Cabinet Paper on the selection of the Chinese company taken forward by Deputy Premier and Minister for Natural Resources and Labour, Dr The Honourable Kedrick D. Pickering (R7) was deferred a few weeks ago and it’s not on this week’s agenda, according to a Senior NDP source close to the matter.
Leading up to the 2015 general election, Dr Pickering told the public the airport project is a “done deal” while Dr Smith described it as a “top priority" for his NDP administration in its new term.
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49 Responses to “More details emerge of giveaways to Chinese Company in airport contract”
I might not like the Crabbes but i know for sure if they get the job i gone get a eat. a truck for $340.00 that cant even pay for fuel and the driver.
I do agree that when government will be paying for anything, the charges automatically go up. The government should have negotiated lower prices on equipment and other costs with the local company also. Exempt the SS, Nhi and other related costs in order to get a better price. At least a greater portion of the millions would stay in the economy; while the Chinese would go with every d*** thing; just like the Dominicans at the Hospital project.
This is pure bullsh*t on the government of the day let them come ask for votes if they hire the Chinese
Never heard of him, or this company involved in the Caribbean that is his - but there was a McAlpine who was a
mayor and then Lt. governor in the US state of Alaska who was heavily involved with the big oil interests. I don't
think he really worked for British Petroleum, but your description sure sounds like the same persons. Interesting.
So if we all have anything to say, it should be to thank the Chinese for putting the sunshine of these facts. Sunshine is the best sanitized! I am not saying I am for or against giving the contract to the chinese. I am going to stay neutral because I am more angry about the message that those numbers reveal. BVI contractors are price gouging their own and the elected officials legalized it! The Chinese are Smart enough to know rental rates in the BVI is over inflated so why not set up a labor camp agreed to once again by the BVI government. BVI keep having your cake and eating it too, eventually it will be the down fall of a great set of Islands.