Harbour upgrade tender closure extended to September

Updating the Times on Friday morning on progress with the project to upgrade Avatiu harbor, Ports Authority CEO Bim Tou said tender bids will now close at 2.00pm on Monday 13 September 2010.
Bids were originally to close on 31 August. Tou said at 2.30pm on 13 September, the tender documents will be opened and the committee will begin their review. The committee will comprise Beca, Bim Tou and a legal person to be appointed by Tou.
Tou said all six companies which came to Rarotonga recently are showing an interest and will be ranked from 1 to 6.
The committee is expected to make its decision by the end of October or first week of November. If the first ranked company agrees, contracts could be signed by the end on November 2010.
Some 100,000 cubic metres of basalt will be dredged from the harbor when the depth is extended from 5.8m to 8m.
Some of this material may go to reclaiming more area for the Punanga Nui Market. An area of about 2 hectares according to government’s concept plan. About 12,000 cubic metres is earmarked for a site at the airport of about 9,100 square metres. At a meeting of landowners on Wednesday evening they approved in principle for some material to go to the old landfill site in Panama. Discussions regarding the 2.5 hectare site are continuing.
As the basalt material is ideal for construction and roading, MOIP are looking to take some of it provided they can find a suitable storage site.
The total amount being loaned is US$15.5 million. Our government will contribute an additional $2.5 million.
Tou provided the following details regarding the structure of the loan. Of the US$15.5m loan money, Tou said there will be a first loan of US$6.8m from the Asia Development Fund. This is in the nature of a soft loan fixed in US currency and structured over 32 years with a grace period of 8 years. The interest rate will be fixed at 1 per cent for the period of the grace period and thereafter will be fixed at 1.5 per cent.
The balance or second loan said Tou will be a commercial loan at commercial rates known as a OCR loan-Other Currency Resources. It will be linked to the London Inter-bank Offered Rate (LIBOR) and structured over 25 years at 3 per cent with a grace period of 5 years. As the LIBOR rate fluctuates, Tou said we have the flexibility to change the loan to another currency.
Tou said this means ensuring exchange rates are in our favour. Also we may be able to purchase US$ and earn interest.

By Charles Pitt

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