East Bank four-lane road expansion…GT&T alleges BK Int’l owes $$M in restoration

May 23, 2014 News

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– says contractor’s claims are false

By Latoya Giles

The Guyana Telephone & Telegraph Company (GT&T) has debunked allegations by contractor BK International that its utility poles and cables are the cause for the delay of the completion of the East Bank four-lane road expansion project. The company says that the claims are “spurious”.
According to the telephone company, if the public utility’s infrastructure is likely to affect project works it must be factored into project cost and project timelines from the inception and oversight of the contractors by the Ministry needs to stringent.
GT&T maintained that it has an obligation to protect the integrity of the National Communications Infrastructure in the interest of all of its users. The telephone company yesterday issued an official statement on the issue where it chronicled everything that happened between the company, the contractor and the Ministry of Public Works.
GT&T said that it was contacted by BK International on July 29th 2011 concerning the relocation of its network plant and facilities (aerial and buried copper and fibre optic cables, poles and network access cabinets) in the vicinity of the project area.
It was explained that on August 2, 2011, engineering representatives from the Phone Company and BK International Inc. along with the Ministry of Public Works/Works Services Group (MPW/WSG) conducted a joint survey of the project area to identify the locations of GT&T’s facilities.
It was noted that consistent with established protocols for the execution of such works, on September 2nd 2011, an invoice for the cost associated with the required relocation of GT&T’s facilities was released to BK International Inc. and copied to the Ministry of Public Works.   “Although the invoiced sum was not paid, BK International Inc. commenced work and GT&T began to experience damage to its network facilities as early as September 28th, 2011,” the telephone company said.
GT&T said that subsequently the ministry requested partial rather than complete relocation of their facilities in the project area and the invoice for those works was dispatched to the Ministry on January 20th 2012.
“A payment of fifty percent of the partial relocation cost was received from the ministry on February 9th 2012 and the partial relocation of our aerial cables was completed on March 7th 2012…however, a considerable amount of our major assets remained to be relocated out of the project area,” the company explained.
GT&T said that all the while BK International continued, seemingly in a reckless manner, damaging previously identified facilities seven (7) times in various locations between September 28th 2011 and May 13th 2013.
According to GT&T, the damage affected some 1,800 of their residential and business customers and the cumulative restoration cost amounted to G$2.9 million.
“Equally important is the fact that this damage compromised critical communications at the Cheddi Jagan International Airport and nearby sensitive locations including the Guyana Police Force (GPF) and Guyana Defence Force (GDF).  Instructively, although the invoices for this damage were sent to BK International Inc., to date GT&T has received neither acknowledgement nor payment.
Being frustrated by the contractor’s reckless working practices and refusal to acknowledge or pay our submitted invoices associated with the multiplicity of damage, and in a required effort to protect the integrity of our network and service to customers, on May 8th 2012 GT&T sought relief in the High Court.”
It was noted that the court encouraged the parties to settle the matter, and on May 6th 2014 a settlement was reached. GT&T said that as a result of this settlement, it waived claim to G$20.5 million of outstanding facilities relocation costs.
“To date, payment of the amount due as per terms of the settlement remains outstanding,” the phone company stated.
GT&T said that an invoice for the cost of relocating its network infrastructure facilities was submitted to the Ministry on May 4th 2012.  The company said that although the invoice was not paid it became clear that project works had commenced.  GT&T said that more importantly, even though all parties had participated in a survey of the work area and the location of their facilities was marked, it experienced 17 incidents of damage within Lot 3 between April 20th 2013 and January 25th 2014.
“This damage affected in excess of 8,000 residential and business customers and the restoration cost amounted to G$4.3M,” GT&T noted. “Again, invoices were sent to the contractor, BK International Inc., and they neither acknowledged nor paid.” The company said the outstanding payment is currently engaging the attention of its lawyers.
GT&T in its statement said that it remains committed and ready to cooperate with the ministry and all of its contractors in the interests of national development.  However, there needs to be reciprocity.
“If works are to proceed in a timely manner, all parties will need to adhere to established procedures and protocols and timelines established in agreements,” the company said.

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