45% of agri contracts behind schedule

Apr 22, 2011 News

…but 10 more inked for $490 million

An estimated 45% of contracts issued by the Ministry of Agriculture are behind schedule, authorities said yesterday. The Ministry is now taking steps to invoke clauses for damages, and in a number of cases taking back the contracts altogether.
Minister of Agriculture, Robert Persaud, made this revelation during the signing of 10 contracts for drainage and irrigation works for almost $490M. Eleven were scheduled to be inked, however one contractor was absent.
Of the projects signed, two were re-tendered, a worrying factor especially for farmers who have been clamouring for emergency works, especially in the Essequibo Islands. With rice farmers racing to capitalise on the good weather, contractors and regional officials were being urged earlier this week to get their act together.
Persaud noted that the contract documents were available for scrutiny by all, especially for residents living near the project area.
One of the major projects signed was for the supply of geotextile materials – a total of $286M – which will be key for the stabilisation of the embankments of the East Demerara Water Conservancy (EDWC) Northern Relief Channel. S. Jagmohan Hardware won that contract.
The relief channel, according to government, is critical to reduce long term flooding in the East Demerara area. The current outlets, including ones at Land of Canaan, are insufficient to drain the EDWC when the levels reach a critical point.
In the past, excess waters were released through the Mahaica Creek causing flooding in the riverain areas there.
Contracts were also signed yesterday for works on the drainage structure at Caledonia, Wakenaam for $11.9M with M. Sukhai Contracting; excavation of drainage channels at Lower Pomeroon for $20M (Paramlall Goberdhan); construction of drainage structure at Eastern Hogg Island for $15.5M (Atlas Construction) and the expansion of the Grove/Diamond sluice for $45.3M (Pioneer General Construction).
According to Chief Executive Officer of the National Drainage and Irrigation Authority (NDIA), Lionel Wordsworth, the Grove/Diamond area, which boasts one of the largest housing schemes in Guyana, has been prone to flooding because of the capacity of the sluice, among other things.
Also inked were contracts for the construction of the embankment and structure at Palmyra and Bushlot, Wakenaam, for $18.1M, with M. Sukhai Contracting; supply of excavators and bulldozer spare parts for $30.2M (Japarts); and the supply of a mini excavator and long reach excavator for $48.7M by Farm Supplies.
At Canvas City, Linden, a contract was also signed with Dax Contracting Service for the construction of a soak away and drainage system for a total of $13.1M.
According to Minister Persaud, the contracts are part of the work scheduled for this year by the Ministry.
Two of the contracts, which have to do with the supply of excavators, are designed to reduce government’s continued dependence on third parties, he said, explaining that deployment during critical rainy periods was posing a problem.

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