Breaking news!! Amaila Falls Road Project cancelled

Jan 12, 2012 News

– Gov’t to seize all equipment
– Fip to pay US$120, 000 in liquated damages

Makeshwar Fip Motilall

The Government of Guyana has cancelled the US$15.4 Amaila Falls road project which was handed to Makeshwar Fip Motilall in March 2010.

The then Bharrat Jagdeo government had vociferously defended the contract given to Motilall and his company, Synergy Holdings, and refused to terminate the contract despite mounting controversy over his suitability and ability to complete the contract.

Minister of Transport Robesonn Benn announced the termination of the contract. He said the decision is in accordance with Article 9 of the original Contract and is also consistent with the terms of the Agreement for Completion executed on December 21, 2011 between the Ministry of Public Works and Synergy Holdings Inc.

This agreement included, among other things, the provision of a valid Performance Bond to the Government of Guyana from an acceptable institution to the value of 10% of the contract price on or before January 10, 2012 for the period of the execution of the remaining works and for the Defects Liability Period.

As of December, 2011, Synergy Holdings Inc had completed only 40% of the Works despite repeated urgings and interventions from the Project Engineer and the Consulting Firm to have the project completed.

The termination of the contract will result in the government applying liquidated damages at the rate of US$10,000 per day from January 1, 2012 to the date of termination; seizure of contractor’s retention sum; seizing and taking ownership of all pieces of equipment and all other property used by the contractor on the Amaila Falls Access Road Project.

The Ministry of Public Works will be taking steps for the continuation and completion of the remaining works.

(More details in Friday’s issue)