Former Minister granted approval for oil operator to build bypass road on reserve

Mar 04, 2021 News

The concrete road built to facilitate Guyana Shore Base Inc. oil operations.

Kaieteur News – Former Minister of Public Infrastructure, David Patterson, had signed a deal with Guyana Shore Base Inc., which allowed the company to construct a concrete road along a reserve at Houston, East Bank Demerara, to support the drilling and oil production activities offshore Guyana.
While many may question the terms in which the Former Minister agreed to allow an entity to use the reserve, Patterson, in an invited comment, said it was a matter of traffic congestion.

Former Minister, David Patterson.

Patterson explained that several trucks had overturned at that location causing major traffic congestion.
According to him, the concern was the turning of long base vehicles along the main access road.
He explained further “…What was granted was temporary permission to use the access road to assist in the flow of traffic at that intersection….The government can revoke that permission at anytime, plus the operator has to stand the cost of making good the reserve or plus any damage done to the reserve.”
According to documentation seen by this publication, the construction of the road along the reserve was based on the agreement which was filed in December 2019 between Patterson, in his capacity as Minister of Public Infrastructure vested with the statutory responsibility of oversight and management of the roads in Guyana in accordance with the Road Act, Cap 51:01, and Guyana Shore Base Inc., a company which is the owner and lessee for several plots of land located at Houston.
The document stipulated, the temporary concrete bypass road, which was constructed at the southeast of Plantation ‘A’ Houston, East Bank Demerara, is to facilitate ingress and egress to the company’s properties, located along the shorelines of Houston.
It stipulated too, that Patterson signed the agreement for the construction of the bypass road with special terms and clauses to be observed and complied with.
Among them, Guyana Shore Base Inc. is subject to the terms and conditions of the agreement, in consideration and anticipation of placement land acquisition and planning of road networks for future projects of national priority, namely the construction of the Demerara River Crossing.
In accordance with the terms and conditions, Guyana Shore Base Inc. had agreed to demolish the bypass road on its own expense within 90 days of issuance of the notice.
The agreement stipulated too that the company shall bear all risk associated with the use of the bypass road and waives any and all claims, liabilities , damages and injuries and other claims of any nature whatsoever relating to the use of the road by Guyana Shore Base Inc., its employees, contractors and invitees.
Further, it said that Guyana Shore Base Inc. is only allowed to contract and use the bypass road at Houston under the stated arrangement.
Another clause in the agreement stipulates the agreement may be amended, altered or revoked by written instrument executed by both parties.
Additionally, it was pointed out in a case where the company fails to remove the road as agreed upon, the State reserves the right to remove the bypass road and restore the land to its prior condition, with cost invoiced to Guyana Shore Base Inc. with immediate effect.
It was also agreed upon that Guyana Shore Base Inc. could not reserve the right exercise or institute judicial proceeding regarding the demolition of the bypass access road.