New arrivals lobby costing more, taking longer than initially ex - KUAM.com-KUAM News: On Air. Online. On Demand.

New arrivals lobby costing more, taking longer than initially expected

Posted: Updated:

Cost overruns for the airport's massive international arrivals lobby project are tracking at about six percent. And the target completion date has been pushed back from this September to early next year. That's the update from Guam International Airport Authority management, to the Guam Legislature's Committee on Air Transportation.

The new 3rd-floor lobby was mandated by TSA back in 2003 to separate incoming non-TSA screened passengers from departing passengers. The airport finally awarded a contract in 2016 totaling $111 million, and with change orders, the new cost is at $118 million.

But Executive Manager Tom Ada said there are more proposed changes that will add another $12 million, which would bring the overall project cost to $130 million.

"The reason for a lot of these change orders is that the design and the condition of the structure are really not matching," Ada said. "So when they open up walls and open up, ceilings, they're finding that. There's pipes and other infrastructure that's in there that was not shown on the architectural drawings."

The cost overruns also meant other projects such as a covered parking garage had to be tabled, but Ada says there may be an opportunity for public-private partnerships to complete those.

Ada also gave an update on its longstanding legal battles with DFS over the lucrative master retail concession contract awarded to rival Lotte Duty Free.

Ada says the $15 million deal accounts for 25 percent of the airport's annual revenues and covers about 40 percent of its bond debt service.

"From that perspective, that Lotte concession is very important to the airport and must be protected, that revenue source must be protected, to the extent that we can," he said.

The 10-year $144 million contract with Lotte was voided last year by Superior Court Judge Arthur Barcinas. The court is allowing Lotte to continue while the airport appeals the decision to the Supreme Court.

  • NEWS HEADLINESMore>>

  • Check out more than 30 employers at UOG job fair

    Check out more than 30 employers at UOG job fair

    Job seekers island-wide are invited to attend the University of Guam Job Fair, hosted by UOG’s Career Development Office from 9 a.m. to 2 p.m. on Wednesday, April 24, at the Calvo Field House. The fair will feature 30-plus employers including busineMore >>
    Job seekers island-wide are invited to attend the University of Guam Job Fair, hosted by UOG’s Career Development Office from 9 a.m. to 2 p.m. on Wednesday, April 24, at the Calvo Field House. The fair will feature 30-plus employers including busineMore >>
  • Author, radio show host Dr. David Derose to offer free lifestyle lecture

    Author, radio show host Dr. David Derose to offer free lifestyle lecture

    Do you want to get your life back and learn how to live sharper, leaner, longer and better? Well from April 22-25 at 6 p.m. at the Hilton Guam Resort and Spa, life-changing seminars will be presented by Dr. David Derose. Derose, who is a syndicated radioMore >>
    Do you want to get your life back and learn how to live sharper, leaner, longer and better? Well from April 22-25 at 6 p.m. at the Hilton Guam Resort and Spa, life-changing seminars will be presented by Dr. David Derose. Derose, who is a syndicated radio More >>
  • Woman accuses Korean man of assaulting her in Tumon hotel

    Woman accuses Korean man of assaulting her in Tumon hotel

    A 26-year-old Korean Man was arrested on charges of Family Violence and Harassment. According to court documents it was on Friday just after 6:30pm police responded to an incident at a Tumon hotel. A woman alleges that Kim Tung Young assaulted her. BeforeMore >>
    A 26-year-old Korean Man was arrested on charges of Family Violence and Harassment. According to court documents it was on Friday just after 6:30pm police responded to an incident at a Tumon hotel. A woman alleges that Kim Tung Young assaulted her. BeforeMore >>
Powered by Frankly