$607M already spent on incomplete Leguan Stelling

Aug 22, 2023 News

…contractor requests more money, Govt. to decide on way forward

Kaieteur News – With $607 Million already pumped into the incomplete Leguan Stelling, some six years after the initial contract was awarded – the contractor Sattrohan Maraj of S. Maraj Contracting Services has requested more money from the Government of Guyana – after missing yet another deadline.

Minister of Public Works, Juan Edghill had revealed to the Department of Public Information (DPI) that the contractor has requested more money from the government to complete the project despite the fact that a previously agreed-upon cost had already been approved.

Minister Edghill had planned to meet with the government engineer on Monday to decide on the way forward. When contacted yesterday, the minister revealed that there is no update at this time on the government’s decision.

Notably, the minister had already hinted that the company will not get “another dime” to complete the remainder of the work.

The contract for the rehabilitation of the Stelling was signed in 2018 by the APNU+AFC government and since then, the contract sum has increased from $413 million to $607 million.

Minister of Public Works, Juan Edghill speaks to the contractor, Sattrohan Maraj (right) – (Guyana Chronicle Photo)

The new deadline for the completion of the project was July 2023 – however, the contractor has missed that deadline.

In November 2022, Kaieteur News had reported that the Auditor General Report for 2021 chronicled a series of payments made to an errant contractor for works that he did not complete at the Leguan Ferry Stelling.

Notably, the contract with the contractor was terminated and steps were taken by the People’s Progressive Party Civic (PPP/C) Government to recover the monies.

According to the AG’s report, the contract awarded for the rehabilitation of the Leguan Ferry Stelling in the sum of $413.259M was made in September 2018. By 2019, payments totalling $199.435M were made on the contract sum. However, the estimated value of works completed at that time was $50.970M.

According to the report, as of December 2021, the Ministry of Public Works paid an additional sum of $151.316M to the contractor bringing the total sum paid to $350.751M. It should be noted, however, that even though the additional sum was paid, auditors could not determine if the incomplete works valued at $148.465M were done.

According to the status report dated June 6, 2022, the Ministry of Public Works indicated that the contractor has a balance of $60.047M on the contract sum. Further, it was noted that the contractor, on March 11, 2022, proposed an increase of $168.058M on the contract sum.

A section of the incomplete deck of the Stelling – (Guyana Chronicle Photo)

As a result, the contractor received payments in excess of $148.465M for works not done. The audit office said that this led to a special investigation being conducted.

As a result of the series of delays made in completing the rehabilitation works, the contract for the $413 million Leguan Stelling was eventually terminated by the Guyana Government in 2021. The Government then initiated legal action to have the issue addressed.

S. Maraj Contracting Services, and the Assuria Insurance Company, were sued by the state over incomplete works on the stelling. However, the Transport and Harbours Department (TH&D), which is the procuring agency, during litigation, engaged the contractor in negotiations and arrived at a settlement.

As such on December 16, 2022, works on the stelling restarted and the deadline was given as July 2023 – however the contractor was unable to complete the work.

• Government, Guyana, Juan Edghill, Minister of Public Works, S. Maraj Contracting Services, Sattrohan Maraj