A more controlled system of financing for extensive schemes should be in place

I will take the proposed Alderney airport scheme as an example.

We are told early on that it will cost £24m. Exactly who came up with this quite frankly ludicrous figure? Have there been any plans drawn up, specifications prepared and tenders obtained? I think not.

Alderney as we all know desperately needs a new airport to replace the dreadful third world shack that it already has. I reckon there will be a maximum of maybe 100 to 150 passengers a day so a nice small modern terminal building would be fine and a comfortable two, maybe three million pounds would more than cover that. Extend the runway? Another maximum of say £3m. – we’re not looking at a Gatwick here. Total £6m. Add on a

small fire station, extend the car park and a bit of landscaping and add professional fees should total around £10-12m.

Now if I’m a potential tenderer for this or any other States project where a figure has been bandied about way before any plans, etc. have been presented then I can guarantee that my tender ain’t going to be less than that put out by the States.

If the island is trying to save money and fix the financial shortfalls then surely a more controlled system of financing these large schemes should be in place.

Martin Nickolls

martinanickolls@gmail.com

Editor’s note: Guernsey Ports chief operating officer, Ross Coppolo, responds: Thank you for the opportunity to address to your reader’s concerns, specifically regarding their example of the Alderney runway project.

To answer the question ‘Have there been any plans drawn up and specifications prepared?’ Yes, a great deal of very detailed work has been completed already to get to this stage of the project. That has been done with the assistance of one of the leading firms in aerodrome projects, who has extensive experience of similar developments, both large and small.

All the current pre-tender estimates have been based on detailed design, expert input, and knowledge of the current construction market. We still have to carry out some further detailed design work over the coming weeks to progress the preferred option that has now been chosen by the States, before we can go out to tender. However, for now, the estimates are as informed and as robust as they can be at this stage of the project.

In terms of the scope of the project, it is far more extensive than your correspondent suggests, which could explain why their overall cost estimate is unrealistic. The most significant element is actually not the extension or new terminal, but the full-length reconstruction and widening of the existing runway. All such surfaces inevitably deteriorate over time through wear and tear and constant exposure to the elements, and a runway is particularly prone to this given the continual, frequent loading. Alderney’s asphalt runway is now beyond its useful life, to the point that it has required considerable maintenance and repair in recent years simply to keep it operational. That will continue to be a requirement until we properly address its condition.

Your correspondent is correct that it is less than ideal to publicise anticipated costs prior to tendering. In this particular instance, the States was asked to weigh up different options.

It was therefore essential to give some idea of the order of magnitude costs for each scheme, but that includes all elements – not just construction, but design, project management, new security equipment, regulatory approvals, contingencies, and so on.

What we have not done – and will not do – is publish a breakdown, so prospective tenderers have not been given any real advantage. If they choose to engage in the competitive tender process, they will know they could be up against others. Irrespective of how much cost information we have provided, if they want this contract they will know they need to submit a competitive bid.

To that end, throughout the project we have had early engagement with a number of construction firms who will be able to carry out a project of this specialist nature. That will hopefully ensure that, when we shortly go out to tender, we attract a good level of interest and deliver the best value for all the Bailiwick’s taxpayers.