Delays in EBD expansion project cost extra US $1M in supervisory fees alone

Nov 01, 2016 News

Delays in the People’s Progressive Party/Civic (PPP/C)-initiated East Bank Demerara Four-Lane Extension Project have proved very costly to the nation. While the project has finally been completed, Auditor General Deodat Sharma reported that the delays have attracted an additional cost of over US$1M.
However, the figure quoted by Sharma is only a reflection of what was paid out as at December 2015. The project continued up until the end of September, so the cost may very well be much more.
In his 2015 report, Sharma stated that a contract was awarded in the sum of US$1.193M or approximately G$246.355M for supervision services for the execution of the East Bank Demerara Four-Lane Extension Project.
He said that there were five approved addenda of which four provided for an increase in the contract sum by US$1.737M or approximately $358.690M. Sharma said that that represents a 145 percent increase.
Sharma stated, “As a result of the extensions of the Project, the cost of supervision services increased to US$2.930M or approximately $605.045M.” The Auditor said that overall payments to the tune of US$2.680M were paid as at 31 December 2015.
The Ministry of Public Infrastructure responded to the Auditor General’s findings.
The Ministry said that extension of time and cost was granted. Public Infrastructure said that the revised completion date for the project was set as October 30, 2016. The revised contract sum given by the Ministry was US$3,313,156.
The Ministry said that the services of the Supervision Consultant are required until the completion of the works.
The Audit Office recommended that the Ministry continue to take the necessary action to ensure that the monitoring of contracts are undertaken with due consideration to the implementation and/or enforcement of terms and conditions affecting both parties to the contract.
The East Bank Demerara (EBD) four-lane extension project began in 2011 and was funded by the Inter-American Development Bank (IDB).
The road expansion project had three components lots one, two and three. Lots two and three were completed last year while work on lot one – Providence to Covent Garden, a length of 2.65 kilometres was extended up to September.
Work on Lot One of the project had originally been awarded to Dipcon Engineering Services Ltd in 2011 for some US$8M. It was initially set to be completed in 18 months, but after three extensions, the work had only gone halfway by March last year. The contract was terminated and granted to Gaico Construction and BK International.

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