Vanuatu government considering airport compensation

Transcript

The Vanuatu government says it's seeking advice as to whether a Singapore-based company which lost a deal to develop an international airport can claim compensation.

The airport plan, introduced by the recently removed Prime Minister, Moana Carcasses, was met with strong opposition from MPs over the unclear terms of the US$350 million contract.

An ad hoc parliament committee decided the plan's risks outweighed the benefits, and the project was canned last week.

The Prime Minister, Joe Natuman, told Mary Baines the Vanuatu Trade Development Limited is claiming US$31 million in losses, but the government will contest that figure.

JOE NATUMAN: The agreement had a clause that upon one year of signing, within 12 months, its party will complete what they call condition precedents. Both the Singaporean company and the Vanuatu government have failed to meet those condition precedents. The 12 month period lapsed on the 27th of July so parliament's ad hoc committee recommended that we leave things as it is and let is lapse, so that's what we did last week in parliament.

MARY BAINES: And now Vanuatu Trade Development Limited want compensation?

JN: They have suggested that they have, since the agreement has lapsed, they have met their own conditions' precedents. We are questioning those, we think that they have not met those conditions' precedents. But they say if this agreement is terminated or has lapsed, they are claiming certain fees. Maybe around 31 million US dollars.

MB: Are you concerned about the possible legal challenge?

JN: We will be looking at costing and we are asking the taskforce which was responsible for advising government on this particular agreement that they will work with that Singaporean company and they will go through their costs, itemise every cost, decide whether or not to gather those costs. There are some costs, but not the amount they are claiming. We will be contesting those.

MB: It's also been reported that compensation can't be provided to them anyway because they are not a registered company in Vanuatu. Is this correct?

JN: The Vanuatu Investment Board, VIB, is saying that this company was never registered with them.

MB: And that would mean they can't claim losses?

JN: Well, I don't know, it's really up to the courts and the legal system to decide. But that's one aspect. This company has not been registered under the Foreign Investment Board. I don't know. But the people from VIB say the company was not registered to them. Usually foreign governments that come here to do business are registered.

MB: Are you looking at renovating the existing Bauerfield Airport instead of going through with this deal?

JN: Well, our immediate concern now is to try to prepare the Bauerfield up to the level that is ICAO standard, because if it is blacklisted then we will be in a lot of trouble without tourism. So I'm trying to task another committee to specifically deal with Bauerfield. The Singaporean company after they signed the agreement last year was supposed to resurface and refurbish the whole airport, but they haven't done it. Maybe they have done some feasibility studies but nothing yet on the ground. So this agreement has now expired, so we will have to try to look and get another group or another company to fix our current airport. The long-term plan is to look at the new Greenfield in the future, but right now we have to fix the Bauerfield Airport, this is urgent.