Emergency Recovery Project
Q&A: What happened with the school gyms, sports facilities and EOC contracts—and what’s next
The NRPB recently announced the termination of three contracts related to the repair of school gyms, public sports facilities and the expansion of the Emergency Operations Center (EOC) under the Emergency Recovery Project 1 (ERP-1). The decision was made after the contractor failed to mobilize and begin the works, despite multiple efforts from the NRPB to support progress. We understand that this decision has raised valid questions and concerns. The gyms, sport facilities and EOC matter deeply to students, families, and communities across Sint Maarten; and they matter to us too.
Our initial announcement was intended to promptly inform the public and ensure transparency at the time of the decision. Given the level of public interest and the importance of the matter, and to avoid speculation, we felt it was equally important to follow up with more detailed information. The Q&A below provides that added context and outlines what comes next.
CONTRACT SCOPE & STRUCTURE
Why were the contracts grouped into three large contracts instead of smaller packages?
The works were grouped into three contracts—one for school gyms, one for the public sports facilities and another for the EOC expansion—to take advantage of economies of scale and streamline coordination across multiple sites. This is standard practice in large donor-funded projects and was based on technical, logistical, and timeline considerations. Bundling also allowed for more efficient procurement and consistent quality standards across all locations.
Which projects were awarded to the contractor, and what were the contract values?
- School Gyms: USD 3,983,836.72
- Sports Facilities: USD 3,999,995.59
- EOC: USD 5,111,083.31
Which school gyms and community sports facilities were included in these contracts?
School Gyms:
- St. Maarten Academy
- Sundial VSBO School
- Sint Dominic Primary School
- Sister Regina Primary School
- Sister Magda Primary School
- Seventh Day Adventist School
- SXM Academy PSVE Vocational School
- Milton Peters College
- Mac Browlia Maillard Campus
- Dr. Alma Fleming School
- Asha Stevens Hillside Christian School
- Helmich Snijders Hillside Christian School
Sports Facilities:
- Cole Bay District Sport Court
- Cay Bay District Sport Court
- Dutch Quarter District Sport Court
- South Reward District Sport Court
- John Larmonie Community Center
- Jose Lake Sr. Ballpark
- Philipsburg Cultural & Community Center
- Melford Hazel Sports Complex
- Simpson Bay District Sport Court
- Johan Cruyff Sports Facility
- L.B. Scott Sports Auditorium
- Raoul Illidge Sports Facility
- Rupert I. Maynard Community Center
PROCUREMENT & SELECTION PROCESS
Why was this particular contractor selected for the works?
The contractor was selected through an open, competitive bidding process that followed the World Bank’s procurement regulations. All eligible firms—local, regional, or international—had the opportunity to apply.
The selected contractor met the technical and financial requirements outlined in the tenders and submitted proposals that aligned with the available budget and project timelines. At the time of the award, no red flags were identified that would have disqualified the firm.
All evaluations were conducted by a committee in accordance with World Bank guidelines, and the process included standard safeguards such as performance and advance payment guarantees.
Are local companies eligible to bid on NRPB contracts?
Yes. All NRPB contracts are open to both local and international firms that meet the technical and financial qualifications outlined in each tender, unless they have been debarred from winning World Bank funded contracts. The goal is to ensure that public funds are used responsibly, and that works are awarded to firms capable of delivering on time and to standard. Procurement opportunities and outcomes are published at www.nrpbsxm.org/procurement.
Was a risk analysis conducted before awarding this contract to an international company?
Yes. All contracts under the Trust Fund follow the World Bank’s procurement process, which include a detailed review of a bidder’s technical capacity, financial standing, past experience, and risk profile regardless of whether the firm is local or international. The selected firm met all the required criteria at the time of the award, and the NRPB did not identify any reasons to doubt the firm’s capability to deliver. Standard contractual safeguards such as performance and advance payment guarantees were included in the contract.
What contributed to the contractor’s inability to mobilize and begin the works as planned?
The NRPB is limited in what it can share at this time, as the specifics of the contractor’s performance and obligations are governed by legal agreements. What we can say is that the NRPB made repeated efforts to support mobilization and address delays through appropriate channels.
FINANCIAL & LEGAL SAFEGUARDS
Has the contractor filed any legal action against the NRPB or the World Bank?
At this time, the NRPB has not been notified of any legal proceedings filed by the contractor.
Has NRPB initiated the recovery of the 10% advance payment, and how long will that process take?
The three contracts in question totaled approximately USD 8 million. For each, approximately 10% was paid as an advance. These payments are secured through advance payment guarantees (a form of insurance that ensures public funds can be recovered if work is) and are subject to the relevant contract conditions. The financial and legal implications of the contract termination are currently under review, and no further details can be shared at this time.
What are the financial implications of the contract termination, and how is the NRPB ensuring that funds are protected?
The contracts in question included standard financial safeguards such as advance payment guarantees to help protect public funds. Approximately 10% of each contract was disbursed as an advance. The Government, NRPB, and the World Bank are currently reviewing the situation to determine the best path forward. While a final figure cannot yet be confirmed, all efforts are focused on ensuring funds are preserved and repurposed wherever possible.
What consequences are in place when a contractor does not meet their obligations?
In case a contract is terminated because of non-performance, the terms of the tender prescribe that the contractor is ineligible to participate in future NRPB projects for a period of five years. Additionally, the advance payment guarantee serves as a safeguard to support the recovery of disbursed funds. The contract also provides the possibility to recuperate costs through a performance security.
Apart from termination there are also other tools available to manage the underperformance of a contractor. For example, liquidated damages could be imposed for every day that deliverables are late. In this way, additional costs caused by delays could be recuperated.
PROJECT STATUS & NEXT STEPS
When were the school gym and sports facility repairs added to ERP-1, and why are they only starting now?
Over the past eight years, many critical repairs and infrastructure works were prioritized and completed under ERP-1, including:
- Repairs to private and social homes
- Restoration of 19 schools
- Strengthening of the police station
- Procurement of fire trucks and ambulances
The school gyms and sports facilities were added to the project scope through Additional Financing approved in June 2023. These later-stage activities required time for planning, design, and coordination with multiple stakeholders in line with World Bank standards before launching the tender in October 2023.
The Fire and Ambulance (F&A) building expansion and the new Emergency Operations Center (EOC) had been envisioned earlier in the program. However, priority was given to urgent recovery works while designs were being finalized. Additional time was also required to secure the necessary permits, which contributed to the later start of this activity.
Is there still an opportunity to complete these works under ERP-1, or will an alternative mechanism be required?
ERP-1 is closing in December 2025. Given the limited time remaining under ERP-1 and the need to re-procure the works, it is unlikely these specific activities can be completed within the project’s current timeline. However, discussions are ongoing to explore how these works can be taken forward through other mechanisms, within the Trust Fund. This is done in coordination with the Government and World Bank.
Closing Statement
While this outcome was not what we hoped for, nor what was expected, the decision to terminate the contracts was made to protect the project’s integrity. During the initial phases of the project implementation, the contractor took possession over sites that have seen limited to no progress since. This situation has inconvenienced many stakeholders and could not be accepted any longer. The NRPB remains committed to transparency, accountability, and getting the work done, especially for the students and communities who have long awaited these much-needed upgrades.
Our procurement processes are open to the public and can be viewed at www.nrpbsxm.org/procurement. We thank the public for its continued engagement and will share updates as soon as new steps are confirmed.