$146M feasibility study for new Demerara River bridge… Opposition demands Minutes of Tender Board, Evaluation Reports

Sep 23, 2017 News

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The Opposition is not buying the story by Government of how a Dutch firm was chosen to conduct a feasibility study and design for a new bridge across the Demerara River.
According to the Ministry of the Public Infrastructure, 22 companies that expressed interest to conduct the study did not make it in the race. As a result, Lievense CSO was chosen after the approval of the National Procurement and Tender Administration Board (NPTAB) was sought.
The feasibility study was released to the public this week. It recommended the bridge be built between Houston, East Bank Demerara, and Versailles, West Bank Demerara, with homes removed, lands acquired and new roads to be constructed to reduce congestion.
The Opposition is calling on the Public Procurement Commission, as regulators of state contracts, to investigate.
Following questions on how Lievense CSO was chosen for the $146M contract for the study, the Ministry of Public Infrastructure in a statement Thursday night, explained that with funding from the Inter-American Development Bank (IDB), it advertised the consultancy for Feasibility Study and Design for the new Demerara River Bridge. Some 22 expressed their interest with 12 of these shortlisted. However, only two submitted bids.
Of the two submissions, only one firm had a valid bid.
“However, the firm’s bid price exceeded the US$800,000 budget. Additionally, concerns were also raised on the technical level.”
MPI said it subsequently made the decision to annul the process in May, following permission from the NPTAB and the Ministry of Finance.
“Nonetheless, MPI continued to seek suitable consultants due to the significance of the project and the need for its realisation. The Ministry actively sought greatly qualified consultants worldwide. It was during engagements with various companies, including those in the Netherlands, the Dutch Risk Reduction (DRR) Team, and in England, the company, Lievense CSO, was recommended.”

Best Bid

MPI said that a bid was later received from Lievense CSO and it applied to NPTAB for permission to engage the company- “this permission was granted. Upon evaluation of the bid, it was determined that it was the best out of all that had been submitted, both on the technical level and in relation to price.”
MPI disclosed that Cabinet was therefore invited to consider the proposal and subsequently gave its No Objection to the award of the contract and the progression of the project.
“Furthermore, the Ministry of Public Infrastructure wishes to emphasise that we welcome the investigation by the Public Procurement Commission (PPC) since we are confident that the findings will reveal that our above statements are factual. We also wish to encourage the Parliamentary Opposition to desist from clutching at straws in their continued efforts to undermine the Government of Guyana.”
Instead, MPI said it is calling for their support in a project that will lend to significant development for the nation.
“We will not be deterred to deliver on our mandate to the people of Guyana.”
Yesterday, the Opposition- the People’s Progressive Party (PPP), which while in Government had been trying to bring the project to realisation, suggested that had it not released a letter calling on the Public Procurement Commission (PPC) to investigate the award to Lievense CSO, Government would have remained silent on its suspect moves.
“…a fundamental of any anti-corruption effort is transparency,” the Opposition Chief Whip, Gail Teixeira added.
The Opposition MP pointed out that the Coalition government “has a penchant for retendering” of contracts.
She added that while the Ministry claims that it had concerns, the company with the ‘valid bid’ was, in fact, invited to Guyana twice and was engaged in negotiations.
Teixeira questioned the involvement of the Dutch team in the process, since the team was in Guyana to address issues related to drainage.

IDB?
According to Teixeira, this is the first time that Guyana is learning that the IDB is funding this study.
“If this is so, and at this point we can’t believe anything the government is saying, what is at stake now is the credibility of the IDB.”
According to her, the 22 companies that had expressed an interest in the project are all recognised by the IDB.
“The IDB has its own procurement law. The matter can’t go to Cabinet until NPTAB writes to IDB, and then it goes to Cabinet,” she said, also questioning what information was provided to the IDB.
The Opposition Chief Whip also questioned whether the US$800,000 represents a loan or a grant from the IDB.
The MP also noted that there is no record that the tender with 22 companies was ever scrapped.
Meanwhile, the Opposition Chief Whip, when asked, said that writing to the PPC was one avenue that the political Opposition could pursue.
According to her, a move could have also been made based on provisions under the Access to Information Act. Notably, she charged that any question put to the government in the National Assembly would most likely not be addressed until 2018, given the fact that several government ministers are travelling and frequent sittings are unlikely before Budget 2018 review commence later this year.
Teixeira charged that the process was “undermined, the procurement laws were flouted and discarded, and the procurement process was treated with total disregard” by the Coalition Government.
The Opposition now wants the Government to provide the Tender Board minutes of the opening of tenders; the evaluation of the 22 companies that had expressed interest in the contract; the letters sent to the 22 companies, as is required by law, which say that the tender had been annulled, the date of the annulment and outlines the reasons why this was done.
They also want the Tender Board Minutes that relate to the award of the contract to Lievense CSO; and for the PPC to monitor activities related to future works connected to the new Demerara River crossing.
“The political opposition made clear that there must be full disclosure from the government on the matter. Lievense CSO was awarded the GYD$146.3 million (US$706,091) contract to conduct the six-month feasibility study in January 2017.”

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