US$50M Diamond/Ogle bypass… New Indian contractor selected after previous companies pull out

Jul 22, 2017 News

The much anticipated bypass road, which will link the East Bank to the East Coast of Demerara, has hit a snag, after the two contractors that had previously expressed interest to execute the works, have pulled out.
Funding for the project comes from a US$50M Line of Credit (LOC) from the Exim Bank of India, which was signed in March 2016, between the Governments of Guyana and India.
India’s High Commissioner to Guyana, Venkatachalam Mahalingam, providing an update on the project, said that the two previous contractors – National Highways Authority of India (NHAI) and National Highways and Infrastructure Development Corporation (NHIDCL) – decided to pull out, noting that they were “too big for the project”.
Mahalingam said that when the contractors were being indentified, the Government of India was doing so in the best interest of the people of Guyana, and did not necessarily take into consideration the size of the project.
“We thought that we should give the best to the government of Guyana, that’s how we chose those two companies. Those two companies were not willing to say no in the first instance, and we realised later (that) they were two big for this project – which is small to them, but very important for us. Ultimately, we had to give them up and go for another company,” the High Commissioner explained.
He noted that another Indian company, Rites Limited, will arrive in Guyana by the end of this month, to conduct the preliminary study for the project.
This company, the High Commissioner explained, is a Public-Sector entity that has been executing road and bridge projects worldwide.
It is expected that when the preliminary study is completed, the company will discuss it with the government. A detailed project report will then be prepared for the project to be implemented.
The LOC for this project was signed four months prior to a similar agreement signed between the two nations.
The most recent LOC was signed earlier this week at the Ministry of Finance in Georgetown, for the modernization of primary healthcare facilities here. Some US$17.5M will be made available for the upgrade and construction of additional facilities at three major hospitals in Guyana.
The resources will be used to refurbish the existing facilities and construct new buildings at the Suddie Regional Hospital in Region Two (Pomeroon/Supenaam); West Demerara Regional Hospital in Region Three (Essequibo Islands/West Demerara); and the Bartica Regional Hospital in Region Seven (Cuyuni/Mazaruni).
Additionally, medical equipment will be procured to furnish the new and renovated facilities.

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