Contract regarding the expansion of the runway takes into consideration larger quantities of rock

The project contract between Vagar Airport and J&K Petersen, takes into consideration that larger quantities of rock will have to be excavated in connection with the expansion of the airport.

As the media have reported on the quantities of rock in connection with the lengthening of the runway, Vagar Airport would like to take the opportunity to make the following statement.

By surveying it has been confirmed that the quantities, which have to be removed, in order to expand the security zone running parallel to the runway, comprises app. 1,6 million cubic metres of earth, stone and rock.

The corresponding quantities stated in the tender document was estimated at app. 1, 3 million cubic metres.

Thereby a discrepancy appears between the estimated quantity of rock and the actual amount of rock deemed for removal. This has created headlines in the media, which are misleading.

Contract comprehensive
The project contract between J&K Petersen and Vagar Airport takes into consideration that a discrepancy could arise between the work, which is actually necessary and that described in the tender document.

The contract is construed such, that in the tender document required services are listed and how many services units provisionally are to be delivered. The entrepreneur in his tender supplied a service unit price for the various services.

When the work has been concluded, a tallying of the various units delivered will be made and payment made accordingly. In order to exclude unreasonable demands, limits are imposed regarding how large a discrepancy is permitted between estimated quantities and the actual quantities involved.

Although a discrepancy of 0, 3 million cubic metres of rock is relatively large, it is still within the boundaries defined within the contract.

Within the fiscal framework
The project contract with J&K Petersen, which mainly comprises the area work, has a value of Dkk 131 million.

When the contract was signed in March of this year, the overall estimation cost to extend the runway, including technical installations, equipment, expropriation, other necessary work and services was calculated at Dkk 221 million, with an uncertainty factor of Dkk 6 million.

To ensure that the project will be concluded within the fiscal framework available to Vagar Airport, the Company has allotted money corresponding to the estimated project amount, including the uncertainty factor amount.

It can therefore be confirmed that conditions regarding excess quantities of rock relating to the entrepreneur are regulated in the project contract, which takes into consideration changes relating to provisionally agreed unit services.

Simultaneously, it can be confirmed that Vagar Airport, with a great degree of certainty, is capable of concluding the intended expansion within the available funding framework