Gaskin forced to explain $212M allocation for Industrial Estates in 2016

Dec 14, 2016 News

Minister of Business Dominic Gaskin was yesterday forced to explain in the National Assembly, the expenditure of $212 million, during 2016 that was allocated for the Industrial Estates at Lethem, Coldingen and Belvedere.

Business Minister, Dominic Gaskin

This occurred during the consideration of the 2017 estimates of revenue and expenditure within the Committee of Supply.
The issue came up as opposition member of Parliament Joseph Hamilton queried how much of the total sum was budgeted for the Lethem Industrial Estate and further, how much had been spent on the estate thus far.
Minister Gaskin informed the House that $160M was allocated to be spent on the Lethem estate, but only $22M was spent. However, he did say that that amount was a ball park figure, since he could not say exactly how much was specifically spent on the estate.
At that point, opposition Member of Parliament Juan Edghill told the House that based on Gaskin’s response, the figures presented in the estimates as expenditure for 2016 are not reliable, since they do not represent the total amount actually spent.
Gaskin, in responding, said that the figures represent a budget and they represent the latest revision of those figures at the end of a process where Ministries would have submitted final projections.
The Minister said that the $212M which is stated under the revised amount for 2016 is not the amount which is likely to be spent on the line item “Industrial Development”. As such, he was asked why the projected amount was given and not the $22M which was actually spent.
He said that the design works for the estate have already been completed and presently there is a contract at the National Procurement and Tender Administration Board for additional work to be done.
When that contract is awarded, he said, a final figure in terms of expenditure for the year can be given. He said that the contract is expected to be awarded before the end of this week. If so, there is likely to be a mobilisation fee paid to the contractor.
He was also asked to explain how the remainder of the $212M was expended. According to Gaskin, the other two estates which were catered for under the amount were Coldingen and Belvedere, at $20M and $33M respectively.
Regarding the two estates, Gaskin was asked whether any money was spent to facilitate works. The Business Minister told the House that a $29M contract was awarded, of which $14M is expected to be spent before the end of this year.
For 2017, the Ministry has allocated $287M to be spent on the three estates. Out of that amount, the construction of a bridge at Coldingen estate will cost $19,501,000; the construction of a fence, gate and fire hydrant at Belvedere – $23M and the development of the Lethem industrial estate, including a business incubator, $150M. Gaskin said that the total amount to facilitate works for the Lethem estate will cost $800M.
The complete management of these estates is expected to be taken over by the Business Ministry from the National Industrial and Commercial Investments Limited (NICIL) by year end.
The Ministry in its 2016 to 2020 Strategic Plan Final Report, highlighted that industrial estates typically are interesting for businesses, as they provide an attractive location which will allow fast, inexpensive and reliable transportation to the nearest hub, and infrastructure services, such as sewage, reliable electricity and internet.
Gaskin was asked how optimistic he was that the allocated $287M would be spent next year, when the Ministry failed to spend $212M in 2016. According to Gaskin, his Ministry is more informed now and will see to it that work is completed. He said that works had begun on the estate, but stopped when it was realised that the project was headed in an undesirable direction.