Termination of Black Bush Polder pump station contract will costs tax-payers more than $38M – Mahipaul

Oct 19, 2023 News

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…Agriculture Minister deems MP’s claims “misleading”

Kaieteur News – A move last month by the Ministry of Agriculture through the National Drainage and Irrigation Authority (NDIA) to terminate the $978M contract for a new pump station at Black Bush Polder (BBP), on the Corentyne will cost tax-payers more than $38M.

This is according to Opposition Member of Parliament (MP), Ganesh Mahipaul who noted in a statement on Wednesday that the he observed “the squandering of millions of dollars” during a site visit to BBP on Wednesday. He laid the blame for the termination of the project squarely at the foot of Minister of Agriculture, Zulfikar Mustapha.

However, Mustapha in subsequent release accused Mahipaul of providing misleading information. He accused the Opposition MP of “lacking technical knowledge” on the issue. Earlier this month, Mahipaul issued a call for a probe into several pump station contacts across the country which he said were way behind schedule. The project at BBP, which was undertaken by Yunas Civil and Building Construction, was expected to be completed by April 23, 2023. The contract was awarded by the National Procurement and Tender Administration Board (NPTAB) in 2021. Mahipaul said that only 14% of the work had been done but 20% of the contract sum had already been disbursed.

The NDIA subsequently noted in a press release that the contact was terminated on September 25, 2023 “for poor quality and performance of works being executed”. The NDIA said the project will soon be retendered.

Mustapha noted on Wednesday that acting on a consultant’s recommendation, the contract was terminated. “The consultant’s recommendation was based on the failure by the contractor to address breaches of the contract continually combined with the failure of the contractor to execute works in accordance with the contract and the continued failure over the duration of the project to achieve the scheduled progress of works in accordance with the approved work programme,” he said. He added that those factors amounted to a fundamental breach of the contract.

Earlier on Wednesday, Mahipaul described the move by the authorities as short-sighted.“Minister Zulfikar Mustapha has, in a short-sighted move, inflicted grave financial harm upon the hardworking taxpayers of our nation,” he said.

He said the termination clause of the contract will necessitate the NDIA and by extension the Agriculture Ministry, to pay for measured work as well as for materials at the construction site.

Mahipaul described what he saw at the Region Six construction site. “There, unmistakably, lay a cage-like formation of steel rods, consisting of both one-inch and three-quarters-inch corrugated steel rods, spanning the entire base of the project, atop what appears to be a concrete foundation,” he said. He said, the “disheartening quantity of steel rods lie in a state of advanced rust, slowly decaying.” As regards re-tendering of the project, he said that this move will be costly, at tax-payers expense, since the materials at the site will continue to deteriorate.

BREAKDOWN OF MATERIALS

The Opposition MP provided an inventory of the material at the site.  He said the total sum in losses to tax-payers amounts to a sum exceeding $38 million and the sum includes the cost for various sizes of steel rods at the project site.

While noting that retendering the project will have dire consequences, Mahipaul said, “no new contractor will be able to employ these rust-ridden steel rods.” He said to utilise such corroded materials, “would not only compromise the structural integrity of the project but would also raise grave concerns regarding the safety and longevity of the infrastructure.”

Alternatively, he said the “the most prudent course of action” would have been to immediately ensure that concrete was poured over the steel rods which he described as “a straightforward task given that the necessary cage-like structural formation is already in place and ready for this crucial step.” However, Mustapha noted that steel which was not used, is being moved from the site. As regards pouring concrete on the steel rods in place at the site, the minister noted that such a move would be “absurd.”

Noting that Mahipaul’s recommendation was not based on “any technical advice,” he said that the, “entire structure would need to be replaced given the failed concrete compressive test.” The minister said that in undertaking such a project, the piles are first put in place, then capped followed by the installation of steel. “Therefore, since the concrete compressive test did not meet the required standard, the entire concrete around the pile caps would need to be broken and replaced,” he added.

He added that the steel which was installed at the site by the contractor would be removed and new concrete would be poured around the pile caps. The steel rods would then be replaced, he added.

Meanwhile, Mahipaul said later on Wednesday that he stands by his findings. He said since the works undertaken by the contractor would have to be redone, “as claimed by the Ministry’s sensational response, would that not cost the tax payers millions of dollars?” He noted that his duty as an Opposition MP is “to safeguard the interests of the people and wisely allocate resources.” “In this case, Minister Mustapha has failed in this fundamental responsibility, and the taxpayers will pay the exorbitant price for his thoughtless actions,” he added.

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• Ganesh Mahipaul, Member of Parliament (MP), Minister of Agriculture, opposition, Zulfikar Mustapha

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