Cost to build Linden to Mabura road up to $32B

Feb 14, 2022 News

– after company adds price for contingency

Kaieteur News – After arithmetical errors were corrected with its bid price, the Brazilian firm, Construtora Queiroz Galvao, will be building the Linden to Mabura Hill road to the tune of $32 billion.
This project, which is in partnership with the Government of Guyana, the Caribbean Development Bank (CDB) and the United Kingdom Government, includes the upgrading of approximately 122km of road from Linden to Mabura Hill to an asphaltic concrete road.
When bids were initially opened for this project at the National Procurement and Tender Administration Board (NPTAB) office in December last, the company submitted a financial proposal of $29 billion to construct the new road.

Section of the Linden to Mabura road.

Kaieteur News understands that this amount has changed to some $32 billion since the company was notified of arithmetical errors in its bid price which had to be corrected. The company was among five firms vying for this project. The companies which competed for the contract were: China Gezhouba Group Company Limited (China) with a bid of $29,962,374,255, China Railway International Company Limited (China) with a bid of $33,808,790,866, Shandong Luqiao Group Company Limited (China) with a bid of $30,225,357,150, Queiroz Galvao (Brazil) with a bid of $29,546,747,077, and joint ventures Castilho (Brazil) and local company EOCI with a bid of $35,138,144,149. The Ministry of Public Works, which this project falls under, estimated the project to cost some $34,197,257,104
Providing some clarity with regard to the bid price for the project, Minister of Public Works, Juan Edghill told this newspaper on Sunday that when the bid was submitted, one price was called out, but before it was evaluated, the evaluators discovered that the figure was not correct and “so they notify the bidder who accepted that, and that is the new price.”
The Minister explained, “They had contingencies in their price but they did not add it to their original price. Before they were evaluated the contingencies were added in.” Edghill further stated that the mathematical errors were corrected by the bidder before it was announced that it was awarded the contract. On February 3, last, Senior Minister with responsibility with Finance, Dr. Ashni Singh had announced that Construtora Queiroz Galvao S.A has received the Caribbean Development Bank’s (CDB) no-objection to go ahead with the US$190 million Linden to Mabura Road project.
The Public Works Minister has since clarified that the bid price “was not increased after the contract was awarded.” The road project, which is the largest ever to be approved by the CDB, is just the first phase that will ultimately lead to a completed Linden to Lethem road link that will then complete an overland link to Brazil.
According to reports, the Bank is putting US$112 million through a loan towards this project, the Government of Guyana is putting US$12 million, and the UK Government is putting US$66 million.
Upon completion, this road would provide major support to ease of travel, trade and general connectivity between Guyana and Brazil and open vast opportunities by linking Guyana’s hinterland communities to Georgetown. Budget 2022, which was presented on January 26, , by Dr. Singh, stated that the government had allocated a sum of $6 billion for the construction of the Linden to Mabura Hill road.