PHILIPSBURG:--- The National Recovery Program Bureau (NRPB) terminated a third contract under the Emergency Recovery Project 1 (ERP-1), following the contractor’s failure to mobilize for the planned expansion of the Emergency Operations Center (EOC) building.
This decision follows the earlier termination of two other contracts with the same contractor, which covered repairs to several school gyms and public sports facilities. All three contracts were awarded through open, competitive bidding processes under World Bank procurement guidelines. While this is not the outcome that was hoped for, the NRPB followed standard escalation procedures before deciding to terminate the contracts, in full consultation with the Government of Sint Maarten and the World Bank.
As with the other two contracts, this decision was made to protect the integrity of the project and ensure that public resources are used responsibly. Approximately 10% of each contract was paid in advance, in line with international practices. Financial safeguards, such as advance payment guarantees with built-in reimbursement mechanisms, were in place to secure these advance payments. Though the Bureau aimed for a different outcome, its focus remains on delivering the work the public expects and deserves.
The school gyms, sports facilities, and now the EOC building were among the final planned activities under ERP-1. To date, ERP-1 has funded the repairs of many social and private homes, restored 19 schools, strengthened emergency services, including hurricane and recovery shelters and supported the reconstruction of key public infrastructure across Sint Maarten. Discussions are ongoing with the Government and the World Bank to determine the best path forward for completing these works.
To support public understanding and reduce misinformation, the NRPB has also published a Q&A addressing questions around contract scope, contractor selection, financial safeguards, and next steps. It also confirms that this was the final contract awarded to the company in question.
This outcome does not reflect the overall strength of ERP-1, which has delivered critical results for the country. The NRPB remains committed to transparent communication and will provide a follow-up update once more is available from this ongoing process.
Read the full Q&A at https://nrpbsxm.org/erp1-faq.
