Sabina Park World Cup Warning

At a meeting on April 5, 2006 convened to receive and discuss the proposal by ASHTROM [Engineering & Construction Ltd.] for the completion of the project and their submission of a valid construction schedule which has been outstanding for a protracted period of time ASHTROM advised:

That based on their current level of mobilisation, staffing, hours of working etc, their schedule is showing a completion date of February 2007.

B. That this schedule was based on the following assumptions/conditions:

i. That there would be no changes in the design.

ii. That the schedule reflects the effect of the cement crisis.

iii. That the schedule was based on their current manpower, existing equipment resources and standard pre-cast factory production capacity and normal working hours and/or days.

iv. That no official cricket matches would be played at Sabina Park during 2006.

C. The rationale put forward for this new timetable was project delays of 3.5 months as a result of the following:

i. Cement delays of 1.5 months.

ii. Melbourne Road issues (land acquisition, removal of power lines, closure of the street, demolition of properties) of 1 month.

iii. Foundation redesign delays of 0.5 months due to the extent of foundations extending onto Melbourne Road.

iv. Building permits delays 0.5 months.

D. ASHTROM presented a proposal to accelerate the project timeline by increasing the labour, material, and equipment resources to complete the project on November 30, 2007 at an additional cost of US$1.75 million.

E. ASHTROM advised that the deliverables promised on the North Stand for the May games would "no longer be possible". These included:

1. The General seating bowl;
2. Officials? Facilities,
3. Players? Facilities
4. Camera Gantry Level

F. ASHTROM also indicated that if there was a need for them to suspend the works in May and June for the cricket matches then this might further affect their proposal.

The Board of Directors of JC2007 met this morning to consider the report and recommendations of the Executive regarding the issues. The meeting was attended by the General Manager of ASHTROM on the invitation of the Board.

1. The Board expressed to ASHTROM its concerns regarding their performance on the project to date and further indicated the very low level of confidence the Board had in the commitment of ASHTROM to completing the project in accordance with their contractual obligations and in a manner that would facilitate the country meeting its obligations under the Host Venue Agreement to host the ICC Cricket World Cup in 2007.

2. The board rejected the request for the extension of the completion date to February 2007 as unacceptable.

3. The board rejected the basis for the delays except for those relating specifically to the cement crisis. In this respect the Board noted that this claim needed to be properly substantiated by ASHTROM with a detailed submission particularly since JC2007 was not in possession of a valid construction schedule.

4. The Board required ASHTROM to submit the long overdue construction schedule by April 18, 2006, clearly establishing the Critical Path of the project and consistent with the contractual completion date. The Board further required ASHTROM to furnish a schedule of interim deliverables to enable a fortnightly assessment of their progress.

5. ASHTROM was advised that any failure on their part to deliver in accordance with the schedule would constitute grounds for the immediate application of liquidated damages.

6. The Board would simultaneously pursue the exploration of alternative options to complete this project to the extent that this became necessary.

7. The Board rejected the claim and request for an increase in the contract sum of US$1.75m as unjustified as with the exception of cement the earlier agreed extension of six months from April to October 31, 2006, incorporated all those issues.

8. Based on a firm commitment from ASHTROM to the Board it was agreed that the matches of the India tour would be played at Sabina Park with the clear commitment that this will not affect the completion of the project as schedule. The new North Stand would not be available for these matches and would be adequately secured to ensure the safety of the all and to facilitate continued work.

9. JC2007, given the conditions, would not be using these events to test the CWC 2007 procedures as was previously contemplated.