Of the $100 million loan the government signed Oct. 31, $36 million is earmarked for roadwork.
The allocation may fall far short.
The cornerstone of leaders’ plan to repair the territory’s crumbling transportation network is a 38-mile reconstruction project that was tendered last year and drew a single bid for about $37 million. But Communications and Works Minister Kye Rymer recently acknowledged that the bid doesn’t include the price of asphalt and other materials, which often make up more than half the cost of such projects.
“The remainder to get the roads done in terms of providing the asphalt and so forth would come from the government issuing additional contracts,” Mr. Rymer told the House of Assembly on Oct. 18 in response to a question from opposition member Marlon Penn. “So [the 38-mile tender] is basically labour as I mentioned: the assessment, the designs, the engineering and the demolition. And it is the construction of the walls, slipper drains, and so forth.”
In response, Mr. Penn expressed “shock” and asked the minister how the territory will afford the project.
Mr. Rymer did not dispute the $100 million estimate, which an engineering expert told the Beacon is plausible for a project of that size.
“The perception was that we’re getting 30-something miles of road for $30-something million,” Mr. Penn said. “But essentially, this is going to cost the taxpayers of this country, for this project in particular, close to almost $100 million.”
Instead, Mr. Rymer said he believes his ministry “must invest what ever is necessary” to get “good” roads.
“The government is providing the asphalt, the material,” he said. “The company’s laying the asphalt; they are doing the paving, and I think we are getting value for money.”
$100 million?
Mr. Penn told the Beacon that he arrived at his projection after considering the estimated cost to rebuild nearly a mile of roadway between Paraquita Bay and Hodges Creek. “That project alone is over $3 million,” Mr. Penn said Nov. 4.
For the project, government awarded a $2,386,015.99 contract to Northam Construction in October 2023 to resurface about 0.7 mile of road in the area, and Mr. Penn estimated it could cost at least that much per mile of road for the 38-mile project.
If Northam’s award were multiplied by 38, the total cost would exceed $90 million.
Expert analysis Dr. Jeffery Roesler, a civil engineering professor at University of Illinois Urbana-Champaign, said Mr. Penn’s round number sounded “plausible” for 38 miles of such roadwork.
“I am not involved on a regular basis in estimating project costs nor familiar with BVI prices, so I can’t say with any accuracy whether this is a reasonable cost for several reasons,” he said. “I can say that I am not surprised by $100 million for 38 miles, so it is a plausible number.”
He added that various factors could contribute to cost increases, such as asphalt binders (known as bitumen) that are not produced within the territory.
“My guess is the cost of asphalt cement binder is much more expensive in BVI than [United States] given it needs to be shipped there,” Dr. Roesler explained in a Nov. 3 email.
Mr. Penn confirmed that Tortola’s asphalt plant imports most of the materials to batch the asphalt, which Dr. Roesler said would most likely increase costs past what other plants can manage.
“Most of that stuff is shipped in — all the bitumens and all those things,” the opposition member said.
Dr. Roesler also listed several other potential cost factors. “
Are shoulders included in the repair? Will there be any drainage improvements to ditches or culverts or storm sewers? How much earth work will be needed to be done for this project to potentially re-profile the road?” Dr. Roesler stated by way of example.
“An asphalt overlay only to a road would not cost $100 million, so there must be a lot more scope of work included in most of the project.”
The tender documents for the 38-mile project do not mention a requirement for road shoulders, but they state that around 62 percent of the existing roads included would need to be completely excavated and disposed.
Government also stated in October 2023 that the works will include preparing the “road base to receive new asphalt paving;” facilitating works for “all utility manholes;” ensuring that drainage structures and sidewalks “achieve an acceptable and level finished pavement;” and “testing of aggregate and asphalt design mix prior to asphalt paving, amongst other things.”
Background
The original deadline for bid submissions was Nov. 18, 2023, but it was delayed until Jan. 30 and only drew one submission: a $37,354,503.55 offer from the St. Kitts-based Surrey Paving and Aggregate Company (Caribbean) Limited. VI officials, however, have not yet announced whether the company will be hired.
Asked in April if government had the money to proceed with the project, Mr. Rymer declined to offer any update on the tender approval process or how government aims to source the funding.
“I thank the premier for making $1.8 million available so that we can do some immediate work in terms of the 38 miles of road,” Mr. Rymer said at the time, adding, “I think they’re doing the assessment of the tender right now, and I think they’ll be working to secure the funding.”
The following month in the HOA, Mr. Rymer defended his ministry’s oversight of road reconstruction, assuring the public that taxpayers would get good value for their money.
Mr. Penn, however, has been increasingly critical of the minister’s approach, and he asked Mr. Rymer during a May 2 HOA meeting for an update on the 38-mile project.
“Why was such a large project allowed to go forward with only one tenderer and not sent back out to tender, which would have afforded the people of the Virgin Islands to get value for money?” asked Mr. Penn.
Mr. Rymer responded that the tender had not yet been approved, and he explained why the process continued with a single bidder.
“Simply put, the process is being allowed to take this natural course to completion,” Mr. Rymer said. “I have not been advised by the Ministry of Finance of a specific clause … within the Procurement Act and regulations that speaks specifically to the cancellation of a bid if only one bid was received through an open tender process.”
In October, Mr. Rymer did not provide the HOA with an update on the status of the tender, and Financial Secretary Jeremiah Frett declined to comment the week of this story’s print date in early November.
Now, Mr. Penn is again calling for Mr. Rymer to restart the tender process.
“I think the minister needs to rescind that tender and allow that project to go through a proper bidding process: a proper evaluation process that includes all those elements that I spoke about so that the people can have a true picture of what this is really going to cost them and get some real competitive bidding and get this done,” Mr. Penn said Nov. 4.
Tender document
In some respects, the original tender request for the 38-mile project appears to contradict Mr. Rymer’s account last month in the HOA: It suggests, for example, that the selected contractor, not the government, would need to supply the asphalt and other materials.
“The proposed works comprise of providing all plant, labour, equipment and materials and performing all operations in connection with the following: asphalt paving of 38 miles of primary roads in conformity with an internationally acceptable standard inclusive of a finished asphalt mix and placement with a lifespan of at minimum 15 years,” according to the “scope of works” listed at the start of the tender request.
In a pre-tender meeting with prospective contractors last November, the same wording was read aloud, but then it was complicated by the answer to a follow-up question from a potential bidder.
When a contractor asked whether government would be “supplying” the materials for the project, a response came from Duane Fraites, the chief of infrastructural planning, research and development in the Ministry of Communications and Works.
“The government will be responsible for batching of the asphalt, Mr. Fraites said. “So the government would procure and clean all the aggregates and material for the asphalt, the [binders] and what have you, and then the government would be responsible for batching of the asphalt.”
The contractor then would be responsible for testing the mix for design specifications, he explained.
Mr. Fraites’ account was paraphrased in the minutes circulated after the meeting.
“The government of the Virgin Islands will be supplying the asphalt and granular material and the design specifications for the project,” the minutes stated.
Other roadworks
Before asking about the 38-mile road tender at last month’s HOA meeting, Mr. Penn began his line of questioning concerning other road projects in the territory, including “the stretch of road from the community centre to police station” in East End.
Mr. Rymer responded that the area has been continuously impacted by poor drainage that would soon be addressed.
“The most problematic segment along the stretch of road leading to the community centre, as asked, to the police station, of approximately 465 linear feet, has been earmarked for construction of a new concrete road,” Mr. Rymer said. “Restricted tender has been issued for the works referenced and is scheduled to return by the end of next week.”
The work is expected to be completed by the end of November, the minister said, though he admitted further patching would continue to be necessary around the area.
“After the conclusion of these works, we would assess the road for potential overlay and patching in other areas beyond the concrete pavement,” he said.
Shepherd Hill
Continuing across his map of questions, Mr. Penn asked Mr. Rymer to provide an update on the “undermined” roads at both lower and upper Shepherd Hill.
The roadworks for the asphalt at upper Shepherd Hill were tendered, Mr. Rymer responded, and bids were received Oct. 15.
“The bids received will be evaluated and a contract will be awarded upon Cabinet’s approval in due course,” he said.
The pavement at lower Shepherd Hill, however, necessitates the completion of the upper section to facilitate residential access, Mr. Rymer explained.
“The upper Shepherd Hill road is currently closed due to the hazard posed — the only access road for residents in the area is through the lower Shepherd Hill road,” the minister said. “As a result, we are pursuing the completion of the upper Shepherd Hill road so that we can undertake the works necessary for the lower Shepherd Hill road.”
Therefore, Mr. Rymer said, his ministry is currently working with Mr. Penn to schedule a community meeting in that area.
Alternative suggestion
Continuing a streak of outspoken criticism about current roadworks in the territory, Mr. Penn said he’s happy to hear about the tenders, but he would like to see some progress before the end of the year.
“The reality is that [the upper Shepherd Hill road] is a major tender,” he said. “By the time that is done, it’s going to be end of the year. And the issue with the lower hill, I think we could find an alternative [solution].”
Instead of residents waiting for the tender to be approved by the Ministry of Finance, Mr. Penn suggested finding an “alternative” to fixing the lower portion.
“We all know in this House how long these processes take to get those contracts lit,” he said.
The works minister agreed.
“If that’s the wish of the member, we can definitely do that once that has been discussed and approved with the residents,” Mr. Rymer said. “We can move forward with that.”
Parham Town road
Moving on, Mr. Penn questioned Mr. Rymer about a section of the Ridge Road above Greenland in Parham Town.
“Could the [minister] please give this honourable House an update on the undermined road above Mr. Perkins in Greenland that the ministry, district representative and the director of public works visited in 2022 and ascertained imminent danger this road poses to the landowner and the residents that traverse this road on a daily basis?” Mr. Penn asked.
According to the opposition member, he had sent a request to Mr. Rymer and his ministry to get the roads completed.
The minister, however, blamed a lack of funding.
“The designs and bill of quantities for these works have been received by the ministry for the construction of a retaining wall and road pavement in the area mentioned [by Mr. Penn],” Mr. Rymer said. “Once the available or allotted funding is identified to undertake this important project, the ministry will initiate the tender documents to engage a contractor for the construction of the wall and roadworks necessary.”
Suggestion
Once again, Mr. Penn had another suggestion for the minister.
Instead of sitting on the money set aside for Shepherd Hill’s upper roadways, Mr. Penn proposed, government should use it to finance emergency construction work to repair the section of Ridge Road he mentioned.
“As we know, the tender cannot be completed by this year, minister,” Mr. Penn said. “So we’ll essentially lose the money if we don’t utilise the money in this budget cycle, and it would be a shame to not fix those very dangerous areas in the district as well if there’s funding available.”
