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Govt. sues BK for $718M in damages for incomplete Yarrowkabra school
An artist’s impression of the $826M Secondary School to be constructed at Yarrowkabra, on the Soesdyke/Linden Highway
Kaieteur News – Attorney General and Minister of Legal Affairs, Anil Nandlall, on behalf of the Government of Guyana, is suing BK International Incorporated over their failure to complete the $827M Yarrowkabra Secondary School and their breach of contract terms. The AG is also suing North American Fire and General Insurance Company Limited, an insurance company, which is listed as the second named defendant, and is now seeking $718M in damages.
In the statement of claim, dated at January 19, Nandlall is seeking general damages “in excess of $100M” from BK International for breach of contract dated December 31, 2019, for the construction of the Yarrowkabra Secondary School on the Linden Highway; for the sum of $83M as liquidated damages pursuant to the provisions of the contract; the sum of $83M due, owing and payable under the Performance Bond issued by the aforementioned insurance company; the sum of $165M due, owing and payable under the advance payment guarantee issued by the insurance company; an order of restitution from BK International in the sum of $137M for which there were no works done; damages in excess of $50M for trespass committed by BK on November 2, 2020; aggravated damages in the sum of $100M for BK’s breach of contract agreement; an Order of Restitution against the insurance company for all monies owing on the Advance Guarantee and Performance Bond to the government, as well as such further or other orders that the Court deems just and reasonable.
Kaieteur News had previously reported that the Ministry of Education, on December 31, 2019, had entered into this contract with BK International. Despite the law preventing the government from signing contracts after mid-December, the former A Partnership For National Unity + Alliance For Change (APNU+AFC) regime nonetheless illegally went ahead and awarded the contract. It was signed on January 7, 2020 with completion projected for March 12, 2021.
The AG made it clear that even with receiving a $214M advance, only 5% of the scheduled works have been completed in November of last year. AG Nandlall had indicated in a letter that BK International had committed a “fundamental breach of the terms of the contract” thereby causing the government to terminate the contract with “immediate effect” on November 2.
However, BK was still occupying the site some 21 days after the contract had been terminated. On November 22, the contractor finally vacated the Linden Highway site.
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