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Monday, 29 August 2011 02:30
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By Everton Barnes
Antigua St John's - Former CEO at the VC Bird International Airport, Ken Hurst, has broken his silence on the holes that have developed in the runway at the airport a mere two years after it was resurfaced.
A Brazilian firm, Andrade Guttierrez, was contracted to carry out work on the runway that was thought to be critical to ensure that Antigua met the requirements necessary to host the 2007 Cricket World Cup.
The overall cost of the project, in excess of US$45 M, was to include an upgrade of the current terminal building, expansion of the ramp, and expansion and upgrade of the runway.
Hurst told Caribarena.com he was surprised to learn that holes had developed on the runway and forced the closure of the airport three times in as many weeks.
But Hurst, who negotiated the contract for the upgrade and expansion of the airport runway, said he does not believe the government has much legal recourse, because it had not lived up to its end of the bargain.
“As far as I am aware, the work on the runway was never fully completed as the company – Andrade Guttierrez – was not fully paid for the work," he said. "We negotiated a three-year warranty for the work, but I doubt that this can be enforced as substantial monies are still owed by the government."
The former CEO added that the work was carried out while the airport was closed from 10:30 pm to 5:30 am. However, Hurst noted that a local engineer – BT Lewis - was also appointed to oversee the work, which he was mandated to verify.
Hurst described the Brazilian firm as having an excellent international reputation for doing this type of work, including similar work in The Bahamas.
He further detailed that there was much concern in late 2006 that urgent work was needed at the airport to meet the requirements of Cricket World Cup and that essentially, the work was divided into two phases.
Phase 1(A) was pre-World Cup that concentrated on the upgrade to the terminal building. Phase 1(B) was the extension of the runway. He said the company was fully paid for the first part, but not for the second.
According to Hurst, much of the problems with the non-payment of monies to Andrade Guttierrez is wrapped up in the ABI Bank debacle. He said the legislation setting up the Antigua and Barbuda Airport Authority stated that within six months, the central government was to transfer all the assets of the airport to the statutory body.
“This was needed as the ABI Bank was to use this to float bonds to raise funds to finance the project, but as far as I am aware, this has not been done up to this day,” he noted.
He also disclosed that many of the top officials of the company associated with the project in Antigua were eventually fired because they continued to work on the project long after the government failed to make the necessary payments.
Asked what advice he would offer the government to deal with the issue, Hurst is recommending that the government should sue the company, but with a caveat that due to the non-payment of funds, the government may not have legal legs on which to stand.
See related stories:
More Holes Develop On Airport Runway
Airport Runway Develops Holes
28 Comments In This Article
Why is it..???
QUEEN
InteresteD
..
tenman
Interesting omission
InteresteD
@ John French II
Morris
us bond
Uses (includes along with the bond PFC Account (1,481,48 balance as of October 1, 2009.) and Airport funds (4,541,570 balance as of October 1, 2009 currently on deposit with ABI Bank Antigua Limited) totaling $56,713,302 USD
Repayment of advances to ABI Bank Limited 4,800,000 8.5%
Funding of Antigua Debt Service Reserve Account 1,408,758 2.5%
Funding of U.S. Debt Service Reserve Account 541,242 1.0%
Funding of Cost Overrun Account 2,403,573 4.2%
Transaction Costs 1,669,475 2.9%
Payment to holders of short-term commercial paper notes 19,100,000 33.7%
Funding of the Construction Account 26,790,254 47.2%
Total uses of funds $56,713,302 100.%
..
tenman
@ Morris - Charity, Repentence and Forgiveness
For Others:
In saying that the devil is in the details, I simply mean that small things in plans, drawings & Specs that are often overlooked can cause serious problems later on. Some surprises are pleasant, those planned by the devil are generally not, so it pays to avoid pitfalls which are preventable by remembering that the devil's in the details. In the world in general, one gains a reputation for being careful and thoughtful as well as difficult to fool. He Paid A Heavy Price. Have Mercy Pon Him. Respect.
John French II
holy smoke..
Chef proposes that we fill these holes at the airport with the same B holes that are responsible for this holly mess.
Chef says if that fails bring lots of holly men and pray. that's the best option UPP has on hand for this .
Microwave Chef
@ John French II
Morris
Don't Shoot The Messenger Again - He Already Fell on His Sword
Nothing happens by chance, there is always a Puppeteer who is awash with campaign funds. In my comments on this matter, I have laid out the possible structural and geotechnical reasons for the holes in the Upgraded Work. The New Work exhibits no such failures. The CEO reminds that he negotiated the Contract and also of the Site Engineer, Not a Clerk of the Work. He further discloses. The Brazilian Company Fired Many of its Top Officials. As one who worked abroad and understood the consequences of failure, he misread his Native Culture and committed harikari. He deserves much more credit. The Concept of Patriotism Versus Enemy. Have Mercy Pon Us.
John French II
Where was ALP
Lionman
Lack of National Pride
Lionman
Why Hurst implicate himself again?
It now could be that the chickens have come home to roost. The inferior materials may have been used to construct the runway surface. It may just be that material from the old surface was milled into the new to save cost. This could possibly be the reason for the porous nature of the current runway surface.
St. Kitts commenced extending and resurfacing its runway long after we did and completed long before we did while adding parking area for approximately 6 wide bodied aircraft and there has not been any like reports about their runway surface. Their success was that they had competent persons managing the process. Need I say more?
Objectivity
Mind Games
The idea of floating bonds to repay the short-term financing is disengenuous, they knew it was untenable and never really intended to do it.
While they were talking about floating bonds they were negotiating with Corporacion America who offered the government all the money it needed to fix the airport and pay off the Brazilian company, but it would have to relinquish the management of the airport.
I am sure that such an arrangement may have the unwanted consequence of reducing corruption so that was that ...
Professor
more in the mortar
So now who is to be blamed??? More in the mortar!!
interesting
SIMILAR SITUATION OCCURED IN TRINIDAD
Anderson
morri
P.J Walter
RE: Former Airport CEO Speaks
I am truly baffled at the amount of money that has been lost, stolen, disappeared, or unaccounted for because of mismanagement, greed, trickery, misappropriatio n, and dishonesty under the guise of fancy projects (no need to revisit them), while our leaders just expect the citizens to look the other way as if ANU has forests filled with money trees.
I can only shake my head in disbelief to know that the amount requested from the IMF is just a mere drop in the bucket compared to the amount our leaders have squandered.
Morris
useless
Antiguan Blogger
Who has to be sued?
The authorities are not telling all the truth!
Once again, the brazilian Company is not liable for this kind of problems, they did what they was contracted to do and it was a perfect work, see the extention they dis, there is no issues at that end, and even though the was never paid for what they did and still are waiting to get paid and complete the works.
Also the brazilian Company paid and well paid everyone and as far as I know they don't owe one single cent to no one.
So, who has to be sued???
Joseph Kornn
Political rewards..
Looks at the board rewards,, Sir Everttee ''command and control of IRD/Customs..
Sir Clarvis Port Chairman,APUA Chairman for life!!!...Senat or..Silvia..
AMB..Lady Joan...ECT..ECT '''''''''''''
John..B
BUZZBOMB
..
tenman
Bologna
JP Farnswroth
Time 2 get new Management Team
Tired
RE: Former Airport CEO Speaks
Fed Up
We get what we paid for.
* How much money do we still owe this company, and what happened to the rest of the $100M?
* How can Mr. Hurst now claim ignorance to "holes" when he left at the end of 09 because of similar safety issues?
* Thanks Mr. Hurst, for excluding yourself from the equation and shifting the spotlight BT Lewis, but who did he report to? I, and probably many others, do not believe that the buck stopped with him, so others knew that we were in trouble.
Can someone please stick a fork in ANU? It appears that we were well cooked.
Morris
whistler
whistle, whistle, whistle
joejoe
Speaking of filling holes...
Anyway, so I'm to understand that gov't would mortgage the airport, a facility of such vital national interest to the country, to allow a private bank to raise capital from selling bonds (to who knows who), so that the money could be loaned back to the government to pay for the airport renovations in turn? Either I'm missing something, or this convoluted financing scheme is borderline corrupt and just digging a hole to fill a hole. And I'm not talking about potholes.
Buzzbomb
advice offer
carvaa
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