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Article published Aug 23, 2006 in the Royal Gazette

Burch: Firm could not meet obligations

By Elizabeth Roberts

A Canadian engineering firm that had been canvassing opinion on a new crossing for Castle Harbour had its contract terminated because it could not meet obligations, Government said yesterday.

Works and Engineering Minister David Burch said of the split with Associated Engineering, which was jointly awarded the contract with OBM International: "They got too much business. The bottom line was that this was a small project for them and they weren't really able to get started.

"The separation has been amicable and we have reached a settlement with them."

Outlining how the project to replace the Causeway which was damaged in Hurricane Fabian will now progress, the Minister said the total budgeted cost for the feasibility study was now $1,506,000 – around $600,000 more than originally anticipated. He explained this was mainly due to an expansion in the scope of geotechnical and environmental studies and in public consultation.

"As the final solution to the Causeway is likely to cost in the tens of millions of dollars this investment will result in a more detailed feasibility study, thereby reducing some of the unknowns during the design stage of the project," he said.

Among the options being examined besides rebuilding or upgrading the existing Causeway are a tunnel or even a new bridge across Coney Island, said Sen. Burch, who stressed there were no preconceived ideas on the preferred option.

He said that after the termination of the contract with the Associated Engineering consultants, it was deemed to be most cost effective to contract directly with sub consulting groups in future and expand the role of expert Ministry staff.

The next phase of the feasibility study will see Aardvark Drilling Inc of Guelph, Ontario, commence drilling and sampling in the waters of Grotto Bay to determine the strength of the underlying rock. This work will start early next month.

The public consultation phase of the project will begin concurrently with this, said the Minister. This will see stakeholders including local businesses and environmental groups contributing their interests and concerns. Local firm OBM will manage this part of the project and open meetings will be held in Hamilton and St. George this autumn. The public will have the opportunity to review the material collected to date as well as participate in a survey designed to engage the public in the planning process.

"All data collected will be analysed and presented at further public meetings scheduled for the new year," added the Minister.

The study is due to be completed in spring 2007. Explaining how the increased cost will be met, Sen. Burch said that Bank of Bermuda HSBC had committed $250,000 and the balance is included in the Ministry's 2006/07 budget.

"The cost of a causeway is likely to be sizeable and the Ministry is currently engaged in exploring alternative financing options," he said, explaining that a "guesstimate" for the whole project at this stage is in the $60 million mark but likely to rise.

Asked whether he anticipated seeking assistance from Britain, he responded: "Well, we are a colony so we will have to ask, but they have not given us much money in the last 450 years so they're unlikely to start now."

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