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St Helena: Airports

International Development written question – answered on 8th November 2011.

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Photo of Ivan Lewis Ivan Lewis Shadow Secretary of State for International Development

To ask the Secretary of State for International Development what the tendering process was for awarding the design, build and operate contract for the new airport on St Helena.

Photo of Alan Duncan Alan Duncan The Minister of State, Department for International Development

Following a market testing exercise conducted in October 2010, DFID reissued the Invitation to Tender to two bidders, Impregilo SpA and Basil Read (Pty) Limited. Both these companies had submitted tenders prior to the “pause” in negotiations announced by the Labour Government in December 2008. Impregilo declined to resubmit its tender in June 2011, leaving Basil Read (Pty) Ltd as the sole bidder. The tender was assessed and found to be compliant. The DFID/St Helena Government negotiation team entered into negotiations in early August 2011 and concluded negotiations in October 2011 at 20% below the previous offer in real terms, taking into account inflation and the value of the pound.

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