After a protracted tender process drew only two bids that were dramatically over budget, the Recovery and Development Agency is going back to the drawing board with the planned West End ferry terminal.
In January, a consortium of the Virgin Islands firms Metro Construction and Todman Construction bid nearly $64 million on the long-delayed project, and their Canada-based rival Aecon Global Services bid almost $94 million. Since both offers far exceeded the RDA’s proposed budget of about $15 million, the agency has now decided to revisit the project’s scope and launch a new tender process, according to Communications and Works Minister Kye Rymer.
In response to questions from opposition member Stacy Mather last Thursday in the House of Assembly, Mr. Rymer explained why the bids were so much higher than expected.
“Several key factors contributed to the variance between the budget and actual bids,” the minister said. “These include outdated cost estimates, substantial increases in construction material and labour costs, as well as unforeseen site-specific challenges — particularly those inherent in marine and coastal construction and integration of a temporary ferry terminal.”
Mr. Rymer also described an analysis by the project’s design consultant, which he said referenced reports from BCQS International and other firms that helped contextualise the disparity. The reports, he said, found that construction costs in the Caribbean rose an average of 19.22 percent between 2021 and 2022.
“These increases stemmed from global supply-chain disruptions, inflationary pressures, and regional economic conditions,” Mr. Rymer said.
The increase, he added, was estimated to be even higher in the VI.
“Applying these regional trends, the design consultant estimated a construction cost in the Virgin Islands rose by approximately 25 to 35 percent between 2021 and April 2025,” Mr. Rymer said. “This compounded increase was used to justify the variance between the original 2021 estimates and current market pricing, historical estimates, and market adjustments.”
Original cost estimate
He added that the initial 2021 design for the terminal was estimated to cost about $13 million. This estimate, he said, accounted for a 20 percent adjustment for “inflation and any other escalation factors.”
Mr. Rymer went on to share the updated cost estimate.
“The updated cost — reflecting detailed design, temporary jetty inclusion and market conditions — was estimated at roughly $26 million, which … while above initial budgets, … was presented by the design consultant as a realistic and reasonable projection,” he said.
Mr. Rymer also said the RDA has received approval from the Caribbean Development Bank — which provided the Hurricane Irma recovery loan funding the project — to cancel and relaunch the procurement process. He did not provide a timeline, however.
“It is now evident that a resculpting of the project is necessary,” Mr. Rymer said. “This will allow us to realign a project with available resources, ensure affordability, and adapt a more sustainable approach to infrastructure development in the territory.”
Mr. Rymer also disclosed how much money has been spent on the project so far.
“To date, a total of $669,231 has been expended on the West End ferry terminal project,” he explained. “This includes $297,409 for geotechnical investigations; $76,295 for seabed surveys, environmental and social management plans, and pursuit of LEED certification; $295,546 for detailed design services.”
Design scrapped?
In a follow-up question, Mr. Mather (R-at large) asked if the design has been completely scrapped. Mr. Rymer replied that it must be revisited since the RDA is not accepting either of the two bids received in January.
“Obviously, the designs must be redone too as we revise the scope,” he said, adding that the geotechnical investigations and survey work can still be used.
Opposition Leader Myron Walwyn asked a second follow-up question.
“Have you taken a look at what exists at Red Hook?” Mr. Walwyn (R-D6) asked of the St. Thomas port. “We need nothing more at West End than what is at Red Hook, and it doesn’t cost any way even close to the $15 million that you have originally, let alone $94 million. Have you taken a look at that, minister?”
Mr. Rymer replied that he had.
“Right now, I think Red Hook is working to redesign their facility because it is not compliant with the domestic and international travel,” he said. “Hence, we were trying to get ahead of that. It makes no sense that we do what they have where we are trying to get to be [International Ship and Port Facility Security] compliant. So that is something that we have looked at.”
The RDA declined to comment on the minister’s statements in the HOA.
“We remain committed to supporting the government in delivering its priority projects and will continue to work closely with the relevant ministries and stakeholders to advance development initiatives,” the agency told the Beacon.
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