Efforts to redevelop the government-owned Prospect Reef Resort are commencing, and a contract with the ICA Group to undertake the project should be finalised “within the coming months,” Premier Dr. Orlando Smith told reporters at a press conference last week.
According to Dr. Smith,the ICA Group is a consortium of Virgin Islands and Middle Eastern partners headed by Dubai businessman Ali Nawaz Shaikh. ICA also was part of a group of firms that proposed in late 2015 to undertake the Terrance B. Lettsome International Airport expansion project.
In November 2015, government officials and private airport consultants from PricewaterhouseCoopers and Baker & McKenzie met with representatives from three firms — IDL Projects Inc., the Sir Robert McAlpine Group, and the ICA Group — to discuss the possibility of the trio partnering to finance, expand and operate the airport.
However, “PwC and [Baker & McKenzie] met with this consortium … and conducted a background investigation on ICA, and found no evidence of ICA’s ability (past or present) to bring financing and an operator to ultimately deliver the project,” states the airport project business case, a document drafted by PwC that analyses various aspects of the proposed expansion. “Their financing sources were obscure at best.”
Government subsequently opted against using a public-private model for the airport expansion, deciding instead to finance the project itself and contract a firm to carry out the work.
Asked by a reporter last week why government is moving forward with the ICA Group for the Prospect development after private consultants questioned the firm’s ability to deliver the airport expansion, Dr. Smith responded that his administration is confident that ICA can undertake the hotel project.
“We have reviewed what they have to offer, and we are content they have the ability to do what we expect,” he said, adding that it was private consultants, not his government, who questioned ICA’s ability to deliver the airport expansion.
Dr. Smith spoke more about the Prospect project on Tuesday in House of Assembly when answering questions from opposition legislator Julian Fraser (R-D3).
Mr. Fraser asked about National Health Insurance, social security, and employee payroll taxes that the resort owed central government as of the end of 2016, and whether Prospect was up to date on those payments.
“The majority of payments were made,” Dr. Smith responded, providing Mr. Fraser with receipts.
HOA officials did not provide those receipts before this issue’s deadline.
{fcomment}