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CWC '07 bill climbs: Government might have to find $1.4b more to pay for Sabina Park refurbishing
Published: Sunday | September 13, 2009
Shaw
The Government could be forced to come up with a further $1.4 billion to pay the contractor which refurbished Sabina Park for the Cricket [COLOR=orange !important][COLOR=orange !important]World [COLOR=orange !important]Cup[/COLOR][/COLOR][/COLOR] in 2007.
Minister of [COLOR=orange !important][COLOR=orange !important]Finance[/COLOR][/COLOR] Audley Shaw on Friday disclosed that the Israeli-owned construction firm Ashtrom Building Systems has claimed the additional money for [COLOR=orange !important][COLOR=orange !important]work[/COLOR][/COLOR] it did on the headquarters of cricket in Jamaica.
"That is what I discovered this week," Shaw claimed at a social function in New Kingston.
matter in arbitration
According to Shaw, the matter is being arbitrated, but Ashtrom has already won the first round of the arbitration.
"And since we have to be engaged in zero-based budgeting, we have to assume the possibility that they could win the entire arbitration process," he stated.
"If they do, not only do we have to pay US$7.5 million for the remainder of that contract, it will attract an interest cost of two per cent per month from May 2007. When you finish totting that up in Jamaican dollars, the total cost of the legacy of Sabina Park will be an additional $1.4 billion that we are going to have to find to pay that bill," Shaw revealed.
He said the Government had been told that the cost of refurbishing Sabina Park for the Cricket World Cup was US$17 million (J$1.5 billion).
However, Shaw said Ashtrom has made additional claims, almost doubling the total cost to US$32 million (J$2.9 billion).
Of this amount, US$24.5 million (J$2.2 billion) has been paid, leaving a balance of US$7.5 million (J$700 million).
Shaw said a monthly interest of two per cent has since doubled the figure to about J$1.4 billion. The finance minister said the unexpected expense while revenue was falling was a major challenge for the Government.
Published: Sunday | September 13, 2009
Shaw
The Government could be forced to come up with a further $1.4 billion to pay the contractor which refurbished Sabina Park for the Cricket [COLOR=orange !important][COLOR=orange !important]World [COLOR=orange !important]Cup[/COLOR][/COLOR][/COLOR] in 2007.
Minister of [COLOR=orange !important][COLOR=orange !important]Finance[/COLOR][/COLOR] Audley Shaw on Friday disclosed that the Israeli-owned construction firm Ashtrom Building Systems has claimed the additional money for [COLOR=orange !important][COLOR=orange !important]work[/COLOR][/COLOR] it did on the headquarters of cricket in Jamaica.
"That is what I discovered this week," Shaw claimed at a social function in New Kingston.
matter in arbitration
According to Shaw, the matter is being arbitrated, but Ashtrom has already won the first round of the arbitration.
"And since we have to be engaged in zero-based budgeting, we have to assume the possibility that they could win the entire arbitration process," he stated.
"If they do, not only do we have to pay US$7.5 million for the remainder of that contract, it will attract an interest cost of two per cent per month from May 2007. When you finish totting that up in Jamaican dollars, the total cost of the legacy of Sabina Park will be an additional $1.4 billion that we are going to have to find to pay that bill," Shaw revealed.
He said the Government had been told that the cost of refurbishing Sabina Park for the Cricket World Cup was US$17 million (J$1.5 billion).
However, Shaw said Ashtrom has made additional claims, almost doubling the total cost to US$32 million (J$2.9 billion).
Of this amount, US$24.5 million (J$2.2 billion) has been paid, leaving a balance of US$7.5 million (J$700 million).
Shaw said a monthly interest of two per cent has since doubled the figure to about J$1.4 billion. The finance minister said the unexpected expense while revenue was falling was a major challenge for the Government.
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