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ECD Four-lane expansion…Dipcon signs new $522M contract
Government has awarded a $522M contract to Dipcon Engineering Services to expand the East Coast Demerara Public Road into a four-lane roadway between Better Hope and Montrose. This section was originally undertaken by Falcon Transportation and Construction Company to the tune of $468M.
Section of stalled East Coast Demerara Road widening project in Better Hope
That contract was terminated but a sum of $207M was already expended on the section.
With this new contract Government is expending about $729M to erect this section.
This amount could increase since the first contractor, Falcon Transportation and Construction Company, whose contract was terminated by the Public Works Ministry, has sent legal documents to the Ministry signaling his intentions to take the matter to Court.
Minister of Transport and Hydraulics, Robeson Benn, confirmed last week, that the issue of Falcon Transportation and Construction Company is still engaging the Office of the Attorney General.
“Whatever is necessary to be done will be done,” he declared.
The Ministry claimed that it terminated the contract because of poor performance and forgery but the contractor rejected this and claimed that it was because he refused to make gifts. The Ministry said that it would have sent the matter to the police, based on advice from the Attorney General in July 2012 but that was not done.
But, even with the extended problems the Ministry claimed that it had with the contractor, a total of $207M was spent on the project. Apparently, the advance payment on the bond was $140M.
According to an Engineer of the Public Works Ministry, when the project was awarded to Falcon Transportation and Construction Company in 2011 it did not include all the works needed for the expansion of the road. Apparently, the idea was to amend the contract as the contractor executed works.
However, the contract valuing $522M awarded to Dipcon includes incomplete works on the contract awarded to Falcon and those that were not included in the contract in the first place.
According to Benn, works are being executed on the site but villagers say differently.
Dipcon Engineering Services is also carrying out works in Lot Two of the road-widening project from Montrose to Golden Grove to a tune of $671M. The construction firm was also awarded a $328M contract to construct Lot Five (Triumph to Mon Repos). The Engineer’s estimate was $231.1 million.
Courtney Benn Contracting Services Limited will be constructing Lot Three of the road widening project from La Bonne Intention to Beterverwagting to a tune of $349M. The Engineer’s Estimate was $264.2 million.
Meanwhile, Lot Four, from Beterverwagting to Triumph, was awarded to Compustruct at a value of $322M. It was advertised at an estimated cost of $241 million. And, Lot Six, which extends from Mon Repos to De Endragt was awarded to Talbot to the tune of $345M. The estimate was $$246.4 million.
The bidding was conducted through the National Competitive Bidding procedure specified in the Procurement Act 2003. The works should be completed within a year.
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