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Amaila Falls road project…Confirmation of new contractors likely this week

Feb 21, 2012 News

 

 

 

The government is likely to confirm two new contractors for the Amaila Falls road project this week, a senior official said yesterday.
This as the new Donald Ramotar government looks to correct the botched project which started when the previous Bharrat Jagdeo-led administration signed a deal with embattled contractor Makeshwar ‘Fip’ Motilall.
Walter Willis, the government’s main engineer, said that Toolsie Persaud Limited, which has been awarded a 49-kilometetre stretch of the road, has already mobilized.
When an additional two contractors would be named this week, it is expected that the project would be stepped up.
Last week, Dr Roger Luncheon, the government’s chief spokesman, said the cost of building the road to the Amaila Falls will cost more than the original contract price of US$15.4 million.
On January 12, the government cancelled the controversial contract that was won by Synergy Holdings under the Jagdeo presidency.
The new Donald Ramotar government terminated the contract from Fip Motilall’s Synergy Holdings and moved to seize all of his equipment. The government further determined that the contractor will pay US$120,000 in liquidated damages.
Luncheon said that even if costs are recovered maximally from Synergy Holdings, the cost will still be more than the original contract.
The road would pave the way for the Amaila Falls Hydroelectric Project which is described as just part of a larger effort to revolutionise Guyana’s power generation infrastructure.
Dr Luncheon said that those who tendered for the Amaila Falls road contract will be revisited. The contractors’ bids for each section are unlikely to be varied, said Dr Luncheon.
The storage dam site would be located near the top of Amaila Falls and would impound the waters of both the Kuribrong and Amaila Rivers.
The Amaila site is located on the Kuribrong River, a tributary of the Potaro River in West Central Guyana. The nearest point of access is the airstrip at Kaieteur Falls on the Potaro River, approximately 15 miles to the south.
An overland trail exists from Kaieteur to Amaila. Access is also provided overland by an all-weather road through Tumatumari on the Potaro River and on to Mahdia and Kangaruma.
River access along the Potaro-Kuribrong Rivers to the foot of Amaila Falls involves several portages around rapids and waterfalls.
The road from Tumatumari was recently extended to Mahdia/Kangaruma that brings the project closer to the site, but approximately 30 miles of additional roads will need to be built to the top of Amaila Falls.
The Government of Guyana had granted the road building contract in March 2010.
The then government had vociferously defended the contract given to Motilall and his company, Synergy Holdings, and refused to terminate the contract despite mounting controversy over Motilall’s suitability and ability to complete the contract.
As of December 2011, Synergy Holdings Inc had completed only 40 per cent of the works, despite repeated urgings and interventions from the Project Engineer and the Consulting Firm to have the project completed.
Synergy Holdings was the original developer of the Amaila Falls Hydro Project.
However, the company realised that it could no longer execute the project and its licence was transferred to Sithe Global.
Less than six months after the licence transfer, Synergy Holdings, under Motilall, secured the US$15.4 million contract from Government to build roads and bridges leading to the project site.
The government announced the award of the contract to Motilall on March 26, 2010. Synergy Holdings was given the first notice to proceed on October 5, 2010 for some sections of the road, while the green light for the other section through virgin rainforest was given on January 11, last year.

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