PHILIPSBURG--Discussions pertaining to the new Government Administration Building are still ongoing with "potential third parties" for the buy-out of RGM, the original company that holds the building contract, the Executive Council informed the Island Council Thursday.

Commissioner William Marlin in late 2009 had informed the media that a contract was almost finalised with a single local group to take over the contract. The Executive Council, in responding to questions by the DP, said Thursday that discussions with "third parties" have not resulted in a firm agreement that can be disclosed.

"Any agreements made with third parties concerning the financing of the completion of the building would need to be presented to the Island Council for approval, at which time all details about a possible agreement will be disclosed," the Executive Council explained.

It explained further that amounts have been reserved on the 2010 budget for the completion of the building as a fall back option. The amount on the budget is NAf. 11 million.

"These reservations are dependant on the ability of government to secure financing in the form of loans for capital investments which would include financing for more than just the completion of the new government building," the council concluded.

Marlin had earlier explained that the new developers would purchase the accumulated interest of current developer RGM and subsequently own the building outright. RGM's contract with government would then be dissolved.

In the deal, he added, government will recoup some US $4 million to go towards the interior of the building, landscaping and construction of the adjacent building (Block D) that will house the tax and receiver's offices.

Marlin also said the intention with the new developers is to secure an agreement that would allow government to purchase the building after a period of leasing or have the building handed over at no cost. This is the same stipulation that RGM and government initially had for 16 years.