GPL defends extension for bid submissions

Aug 23, 2017 News

Guyana Power and Light Inc. (GPL) in an advertisement titled ‘Clarifications’ published in this newspaper’s August 22, 2017 edition, defended the extension given to bidders for Lot B of the company’s Power Utility Upgrade Programme (PUUP).
The advertisement referenced a Kaieteur News article concerning the extension of the bid submission date for Lot B of the PUUP from August 16, 2017 to August 22, 2017. However, this newspaper in no way suggested in the article that the extension was founded on prejudiced grounds.
It was observed by this publication that on the ‘Works, Goods and Services – Tender Opening Details’ document for Tuesday August 15, 2017, posted at the office of the National Procurement and Tender Administration Board (NPTAB), the bids for the project were scheduled to be opened. However, this did not happen.
Upon investigation it was learnt that an extension was given for a number of reasons.
According to GPL in its advertisement, the extension to tender ICB No. GPL-IDB-EU-002-2017 was granted in keeping with the IADB’s (Inter-American Development Bank) policy GN-2349; 2.18 on August 10, 2017.
The power company said that this was to allow all bidders sufficient time to respond to bidding documents changes. The company said that the changes to the bidding documents included but were not limited to “A. changes to the material of the interconnection Distribution Box for Service Connections (IDBSL), from polycarbonate to metal. This box is connected from the Low Voltage Distribution Network and service box to the consumers’ meters which will be on a service pole or the consumer’s building. B. Changes to the size and current rating of the concentric cable with an inclusion of a circuit breaker in the IDBSL.”
Further, GPL said that these technical changes were required to ensure that the company receives the best benefits from the project in the long term. The company said that the period of extension gave consideration for the scale of amendments needed. “This extension, inclusive of the Addendum, required the Inter-American Development Bank’s review and non-objection, which was granted before the bidders were formally notified.”
The company denied that any extension or part of this procurement process was or is being conducted in an inequitable manner. “Further, let’s offer a reminder that the procurement process boasts the highest level of scrutiny and accountability required by the Inter-American Development Bank.”
The bids for Lot B were finally opened yesterday at the NPTAB office in the compound of the Ministry of Finance on Main Street. There were five bids: Surespan Operations Inc. of Canada (US$22.7M); Consortium between China National Machinery Import and Export Corporation (CMC) and China Sinogy Electric Engineering Co. Ltd (GUY$3.4B); Consortium between Cummings Electrical Company Ltd (Guyana) and Aclara Meters LLC of the USA (GUY$2.7B); Hunan Xiangjiang Electric Power Construction Group Co. Ltd (China) in Joint Venture with Fix-it Depot of Guyana (US$15.8M) and Power Construction Corporation of China (GUY$3.2B). The engineer’s estimate for the project was announced as GUY$2.9B.
Suspicion surrounding the procurement process for the PUUP was generated after Lot A of the project was awarded to CMC, a company that does not have the best track record with the power company.
Opinions had been expressed that the project was being fashioned to favour the Chinese company. However, both GPL and the Minister of Public Infrastructure David Patterson have said that the procurement process is fair and transparent, meeting all the requirements of the IDB and NPTAB, with Lot A receiving Cabinet’s no-objection.
Lot B of the PUUP concerns the procurement of works for the rehabilitation of the medium and low voltage distribution network, approximately 260 kilometres. Currently, the power company is designing Lot C of the PUUP. The entire PUUP is being funded through a loan financed by the IDB and a grant from the Caribbean Investment Facility (CIF) of the European Union.

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