Guam – It is not just the staggering cost of the controversial 3rd floor passenger corridor that newly appointed General Manager of the A.B. Won Pat Guam International Airport Authority is concerned about, but the extended anticipated completion date that will cost thousands every day that he wants to focus on addressing.
When it comes to capital improvement projects, the longer it takes to complete the more money is spent. Such is the point made by Ada this morning on NewsTalk K57’s Morning’s with Patti.
“So the cost is one issue and now we need to try and contain that as much as possible. But the other part that we also have to address is the fact that this project looks like its going to take an additional 9 months to complete” says Ada.
He adds, “It was supposed to be completed in September of 2019, now we are looking at the completion of around July 2020.”
“Where are the delays. Why are we having to stretch out?” Ada asks.
Now attempts to narrow the gap between the contracted completion date and the anticipated completion date remains the focus of GIAA as Ada explains, “Everyday that we delay, that comes up to thousands of dollars that’s going to be incurred.”
According to the new airport general manager, it was 6 years ago that the project was first envisioned as part of 2 others thought up in the airport master plan, which priced the project at $70 million.
GIAA then borrowed roughly $110 million dollars, which was spent on contracting architects and engineers for the project.
A much more detailed plan was eventually devised which the airport put a bid out for. However, with offered bids coming in at over 100 million dollars airport authority went back to the drawing board to scale the 3rd floor passenger corridor project down.
Bids were put out once again, resulting in about $97-$115 million dollars. Ada says, “Granted that the initial estimate was 70 million dollars, that was a really rough estimate and when all the details were put together, then that’s when you can come up with a more precise figure.”
Everyday the project is delayed, GIAA incurs thousands more, on top of the 110 million already budgeted for the project.