The St Christopher Air & Sea Ports Authority has confirmed a statement made last Tuesday by former minister of Tourism and National Security Dwyer Astaphan that the second cruise ship could incur cost overruns.
While Mr Astaphan had mentioned that US$7 million (EC$18.9 million) will be needed for more piles, more steel and more concrete to complete the construction of the second cruise ship pier, the SCASPA statement dated April 18 said that the "Contractor (CCC) has made claims for additional works under the General Conditions of Contract."
"These claims are currently under the careful consideration by SCASPA’s consultant Project Managers, ADeB Consultants Ltd of Jamaica. It is not unusual in major infrastructure projects such as, the Second Cruise Pier Project for the Contractor to encounter situations which it believes gives rise to an entitlement to claim for additional works. Similarly, it is standard practice for the consultant Project Managers to review any claims made and to advise the Employer of the validity, if any, of said claims," said SCASPA.
The SCASPA statement continued: "Furthermore, the Project Managers have not yet advised SCASPA that the Contract sum will increase based on the claims made by the Contractor."
Scheduled to cost EC$86.4 million under the then governing St Kitts-Nevis Labour Party administration, the cost of the cruise ship pier ballooned to a whopping EC$129.6 million price tag – EC$43.2 million more.
The St Christopher Air and Sea Ports Authority (SCASPA) secured an EC$91.8 million loan from the St Kitts-Nevis-Anguilla National Bank; EC$18.9 million from the St. Kitts and Nevis Social Security Board; EC$13.5 million from the St. Kitts and Nevis Sugar Industry Diversification Foundation (SIDF) and EC$5.4 million from the St. Kitts-Nevis-Anguilla Trading and Development Company (TDC).
Construction began in June 2018 and is expected to be completed in September 2019.