PFA Authorizes $767.7 Million for Initial Utility and Road Work as Board Questions Contractor Estimates

The V.I. Public Finance Authority board on Thursday authorized officials to enter contracts totaling up to $767.7 million for the initial phases of major utility and road projects on St. Thomas and St. Croix, following questions from board members about sharply different construction estimates and the decision to favor experience and project approach over the lowest price.

The Oct. 1 approvals cover the St. Thomas West and St. Croix Southwest horizontal infrastructure bundles under Rebuild USVI. Both involve installing electric, water and wastewater utilities, followed by paving. The combined $767,721,702 authorization covers preconstruction services and early work packages. It does not establish the final construction price of either project, which officials said would be developed through design and cost reviews and brought back to the board for approval.

For St. Thomas West, the board authorized a contract with KHVI, a joint venture of Kiewit Infrastructure South and Haugland Virgin Islands. Its initial phases total $414,962,127: up to $114,962,127 for preconstruction services over as many as 12 months, and up to $300 million for early work packages over as many as 18 months.

The St. Croix Southwest authorization went to Kiewit Infrastructure South for initial phases totaling $352,759,575. That includes up to $112,759,575 for preconstruction services over as many as 12 months and up to $240 million for early work packages over as many as 18 months. Those time limits apply to the specified phases and do not establish a completion date for the entire project.