Billion $$$ bid security for Eccles/Mandela four-lane road, sidelines small contractors

Sep 17, 2021 News

Kaieteur News – The Central Housing and Planning Authority (CH&PA) of the Ministry of Housing and Water, headed by Minister, Colin Croal, is looking for contractors to execute the construction of a brand new four-lane highway connecting Eccles and Great Diamond, East Bank Demerara (EBD), but according to some in the industry, the invitation in itself, sidelines small contractors from the beginning.

Minister of Housing and Water, Colin Croal

This is since to even obtain a bid document to get the specifications required by the Ministry to prepare a bid, attracts a non-refundable fee of some $50,000.
Additionally, interested bidders are being made to provide bid security at the minimum of $500M, or at least 1.5 percent of their bid price. In some instances, bid security could be as much as $1B or above, or at least one percent of the bid price.
Cumulatively, the effects of the requirements, according to several contractors that have spoken with this publication on the condition of anonymity, “essentially sidelines small contractors from being a part of the process from the beginning.” At least one source told this publication that the requirements, as outlined by the ministry, makes a mockery of the Procurement Laws that guarantee that 20 percent of government contracts be handed to small contractors.
The requirements that have been set out from the beginning, according to one such contractor, effectively sideline all of the smaller operators in the industry, clearly paving the way for a preferred bidder.
The bids are to be opened on November 4, this year.
According to the Ministry, contracts will be awarded to the lowest evaluated qualified bidder and that “only one lot will be awarded to any bidder in a project area.”
It was noted nonetheless that a bidder might be considered for the award of more than one lot, “provided that the bidder has shown sufficient equipment capacity, financial capacity, and human resource capacity, in order to execute simultaneous projects.”
According to the advertisement inviting potential contractors, the Ministry noted that it would be facilitating pre-bid meetings that would allow for site visits and presentations by the Ministry.
According to the Ministry, the construction period for the project is 15 months per lot.
The new road will serve to complement the additional four-lane infrastructure in train, namely, the Eccles to Mandela Avenue bypass road connecting to the Sheriff Street four-lane roadway and, ultimately, the East Coast Demerara Highway.

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