Port Development Project Drags On Despite $10.8M Settlement and Intensified Oversight

Montserrat’s most expensive and high-profile infrastructure initiative, the Little Bay Port Development Project, remains mired in delays, underperformance, and rising costs, nearly three years after breaking ground. Now, facing deepening concerns over contractor delivery and mounting risks, the Government has approved a $10.8 million global settlement to address contractual disputes and buy breathing room for completion planning.

According to the 2024–25 Annual Report from the Ministry of BUILT, the project’s physical progress as of March 31, 2025, was well below target:

• Caisson production (the underwater pier foundation): 68% complete
• Coastal protection works: 50% complete
• Dredging: 30% complete

The underperformance has triggered action from the Ministry, which convened a dedicated Task Force to reassess next steps. The report states that technical oversight was extended to January 2025, a signal that stakeholders including the UK Caribbean Infrastructure Fund (UKCIF), European Union, and the Caribbean Development Bank are tightening scrutiny over the delivery of the $107.3 million project by Meridian Construction Company.

What Is a “Global Settlement”?
In construction and legal terms, a global settlement is a comprehensive agreement intended to resolve multiple disputed claims between parties. In this case, likely covering delays, cost overruns, scope disagreements, and possible penalties. Rather than litigate or drag disputes out further, the $10.8 million settlement represents a financial reset to move the project forward with clear terms, expectations, and risk allocation.

Mounting Delays, Rising Costs
The project has been riddled with delays since at least 2023. Originally slated for completion in early 2024, the Government of Montserrat is now hoping for substantial progress by the end of 2025.

Ongoing issues include:

• Seasonal weather impacts on marine works
• Shortages and shipping delays of caisson materials
• Inadequate local raw materials
• Persistent contractor performance challenges

In January 2025, a full site review confirmed that winter swells had significantly slowed construction, while equipment failures and procurement lags kept key works at a crawl.

MPA Steps In With Support Projects
While the primary port project stalled, the Montserrat Port Authority (MPA) took on critical support and rehabilitation works, backed by $1.65 million in funding from the UK Maritime & Coastguard Agency.

Achievements included:

• Installation of bollards and fenders in both Little Bay and Plymouth
• Passenger landing area upgrades
• New search and rescue (SAR) equipment, oil spill response gear, and ISO-compliant training
• Continued support for site access, logistics, and contractor coordination

Though the MPA operates without direct government subvention, its role has been vital in ensuring some level of progress around port operations and safety compliance.

Community Frustration and Environmental Worries
The drawn-out construction has been disruptive for residents and especially fisherfolk, many of whom have been unable to anchor at Little Bay. Temporary support came in the form of boat trailers to facilitate land-based storage, but the long-term impact on livelihoods remains a concern.

Environmental setbacks have also been raised, including sediment dispersion when protective silt booms were removed during high-sea conditions, an issue flagged by stakeholders as potentially damaging to nearshore marine habitats.

Where Things Stand and What’s Next
The Ministry of BUILT has pledged to “protect public investment” and is working closely with regional and international partners to realign the project’s trajectory. The new task force is expected to report on a path forward.

What remains clear is that Little Bay is not yet ready for the level of commercial, ferry, or cargo activity Montserrat desperately needs to support its tourism and trade growth. Until dredging is completed and the pier is installed, access by larger vessels will remain limited.