Madam Speaker, I am informed that the construction of the New Air Traffic Control Tower project at the Sir Seewoosagur Ramgoolam International Airport was initiated in 2012. In 2013, a policy decision was taken to entrust the responsibility to Airports of Mauritius Co. Ltd (AML) to implement the project on behalf of the Department of Civil Aviation. However, it was only four years later, that is, in December 2017, that an open international bidding exercise was carried out by AML, through the Central Procurement Board. With regard to part (a) of the question, at the closing date of 06 March 2018, three bids were received as follows – (i) Hyvec-Stefanutti Stocks JV; (ii) Tianli Construction Company Ltd, and (iii) JV PADCO-ENDEM. On 14 May 2018, the contract was awarded to JV PADCO-ENDEM, which was the lowest evaluated and substantially responsive bidder for the corrected sum of Rs621,058,680.97 inclusive of VAT and excluding discounts of Rs18,114,862.99. However, the COVID-19 pandemic confinement caused a stoppage of works as from 19 March to 02 June 2020. Subsequently, JV PADCO-ENDEM went into voluntary administration on 07 July 2020 and abandoned the work site. The initial contract was terminated on 17 December 2020. In June 2021, AML launched a selective bidding exercise for the conduct of an independent valuation for the completion of the remaining construction works. On 26 October 2021, Chuttur & Partners Ltd, the successful bidder for the evaluation, submitted that the remaining works would cost around Rs827 million, exclusive of VAT. In other words, the original cost was around Rs621 million, Madam Speaker. Now they are saying Rs827 million.

Voler!

That is, an increase of Rs206 million. The Board of AML approved on 29 December 2021 that a detailed bid be requested from Hyvec-Stefanutti Stocks JV, which was the next lowest bidder. The invitation to bid was issued on 03 February 2022 on a direct/emergency procurement basis. The closing date

24 initially set for 14 March 2022 for bid submission was extended twice up to 19 April 2022 on which date the bid was received. To give effect to this decision, on 19 July 2022, the Board of AML approved that AML would have recourse to emergency procurement for the completion of the project. It should be pointed out, Madam Speaker, that the estimate was updated to around Rs910 million in July 2022. In other words, an increase of Rs289 million now on the original of Rs621 million. The overall project value initially estimated at Rs790 million was then revised to Rs1,296 billion inclusive of VAT and representing, Madam Speaker, an increase of 64% on the original price, that is, an increase of Rs675 million.

Voler!

In other words, more than twice of the original price that was decided. An hon. Member: Voler!

Following consultation with the Procurement Policy Office and advice from the Attorney General’s Office, AML was informed on 05 August 2022 by the External Communications Division of the Prime Minister’s Office that with regard to emergency procurement, it would have to comply with Section 21 of the Public Procurement Act, Regulation 5C of the Public Procurement Regulations 2008 as well as Directive 60 issued by the Procurement Policy Office. After apparently a thorough assessment and numerous clarifications sought from the bidder, the bid was considered to be non-responsive. The bidding exercise was cancelled in August 2022. To bypass the provisions of the existing legislations, surprisingly, Madam Speaker, on 21 December 2022, that is, roughly four months afterwards, the Public Procurement (Amendment of Schedule) (No. 4) Regulations 2022 were promulgated to exempt AML from the application of the Public Procurement Act. Subsequently, AML resorted to its own internal procurement procedures for the completion of the remaining works. Given that the construction has been kept in abeyance and the existing infrastructure was deteriorating, on 08 December 2023, the then Government agreed to Airport Holdings Ltd contracting in part a bank loan and in part using its own funds to finance the completion of the project.

25 I am also informed, Madam Speaker, that AML launched a bidding exercise for the pre- qualification of contractors on 19 February 2024. Two applications were received, namely from Hyvec-Stefanutti Control Tower JV and JV of China State Construction Engineering Corporation Ltd & Nundun Gopee & Co Ltd. The offer of Hyvec-Stefanutti Control Tower JV was retained for pre-qualification by AML’s Tender Committee. The pre-qualified bidder was accordingly invited on 20 May 2024 to submit its bid by 26 June 2024. The bid amounting to Rs 1,325,506,553.42, excluding VAT, was received from Hyvec-Stefanutti Control Tower JV. In other words, another increase of a bit more than Rs704 million on the original price quoted. Now, it is more than twice the amount. As for part (b) of the question, I am informed that the overall completion of the project is around 35 per cent as of 17 December 2020. Since that date, no further works were effected. Today, we are faced, unfortunately, with a decrepit infrastructure whose completion would entail additional public funds. Furthermore, I am informed, Madam Speaker, that with regard to the evaluation of the offer of Hyvec-Stefanutti Control Tower JV for the completion of the project, on 17 February 2025, AML’s Tender Committee recommended that its offer be deemed non-responsive as the bid price exceeds the cost estimate by 45.81%. An amount of Rs322.2 million, excluding VAT, has already been disbursed by AML. With regard to part (c) of the question, I am informed that once the contract is awarded, the duration of the works would be around 19 months.

Yes, hon. Third Member for Vieux Grand Port and Rose Belle! SAFE CITY PROJECT – CONTRACTORS & SUB-CONTRACTORS