Port Project Negotiations Ongoing, Government Reaffirms Commitment to Completion

Updated: 11:11AM AST

The Government of Montserrat remains committed to the long-awaited port development project, with ongoing negotiations to resolve contractor issues and secure a revised construction timeline.

Minister of BUILT Veronica Dorsette-Hector told the Legislative Assembly on Monday that the port remains a strategic priority for the island’s future. “The Government of Montserrat and the United Kingdom Government remain aligned on the importance of this project to Montserrat’s development,” she said during her ministerial update for the first quarter of the 2025/26 financial year.

The project, which aims to deliver a modern, fit-for-purpose facility in Little Bay, has faced significant delays. In early 2024, the contractor halted construction amid concerns over design issues and financial viability. Since then, government officials have been working to renegotiate terms that would protect Montserrat’s long-term interests while ensuring the project remains viable.

Premier and Minister of Finance Reuben T. Meade added “We inherited a project gone wrong. The principal issues are, funding from CDB runs out in March 2026. The contractor (Meridian Construction) had drawdowns greater than the completed works. The contractor is seeking additional financing to complete the project. The contractor is indicating it will take a further twelve months from resuming to completion of this project. Against this backdrop. We have sought to put in place additional project management systems to better manage the project and indeed the funds. HMG has indicated an offer of additional funds, but require a no objection from CDB. CDB is currently reviewing the updated contract and management systems. We are indeed very hopeful that we’re nearing that no objection letter from CDB in order to restart the project.”

In response to questions about financial accountability, Minister Dorsette-Hector clarified: “The Government acknowledges the public concerns surrounding the delays and interruptions experienced in the execution of the Montserrat Port Development Project. It is important to provide clarity on the matter of payments made and accounts settled under the contract. To date, Meridian Construction Ltd has been paid $64 million on the existing $107 million contract. These disbursements cover completed works, equipment, and materials procured and delivered to the site in accordance with the approved interim payment certificates and verified by the engineer. It should be emphasised that these payments are not discretionary, but are made in compliance with the terms of the contract and based on work duly certified. The Government has not agreed to pay an additional $13 million to the contractor following the unexpected suspension of the project. No such payment has been approved. At present, the Government, in collaboration with its stakeholders including the Caribbean Development Bank, is engaged in ongoing negotiations aimed at restarting the project. These discussions have been held with strict adherence to the contract provisions. Any proposal for additional costs must be fully justified, reviewed, and approved in accordance with the contractual terms and conditions. This includes clear documentation, technical validation, and financial accountability.”

The Minister of BUILT confirmed that the project task force has been working actively with the Caribbean Development Bank (CDB) and the contracted firm to agree on a contract variation. “Our focus remains on achieving a timely start and delivering the strategic outcomes intended for a robust maritime future,” she said.

Even as the main construction remains stalled, Minister Dorsette-Hector pointed to continued maritime progress with the launch of the MV Soufriere Spirit (see related story), funded by the UK Maritime and Coastguard Agency. The vessel will support marine mapping, oil spill response, and training as part of the island’s wider port and maritime development agenda.

While no revised start date has been announced, the Minister noted that the negotiations are “progressing in good faith” and reaffirmed the government’s intention to deliver a port that meets Montserrat’s access, tourism, and economic development needs.

“We are pressing forward,” she said. “The project remains a cornerstone of Montserrat’s access strategy and long-term resilience.”

During the same sitting of the assembly, Parliament approved the income and corporation tax waivers for several stakeholders and staff involved in the port development project – employees of Stantec Consulting International, Robert Bourdages, and Franco Gerosa.