Failed projects under the PPP Part 2

Dec 08, 2023 Letters

Dear Editor,

As a continuation from the first part of the series which examined the obsessive nature of the PPP’s Leviathan regime for failing projects. Such was the case of the infamous Berbice Bridge that was completed in 2008. While the intent to build a bridge that connects East and West Berbice was paramount, the manner of which the President of the day went about the transaction was shady.

Taking funds from the elderly and working class through via a pension fund (NIS) should never be an acceptable source to finance government projects. It is criminal to setup the Berbice Bridge Company Incorporated (BBCI) to siphon funds while allowing the bridge administration to collapse with its only recourse to hike up the bridge tolls by 400% in one case to recover operational costs. This had caused major inconveniences in the movement of goods and services for the people of the ancient county.

In an effort to supply low-cost alternative sources of energy to the hinterland community as part of its Low Carbon Development strategy, gave birth to the Hinterland electrification Programme. It is a partnership with the Government of Guyana and the Inter American Bank, the project intent was to bridge the deficiencies existing with energy access to the hinterland regions (regions 1,2,7,8 and 9).

The project’s strategic document highlights the electrification of villages both domestic and public building through solar, wind, hydropower and biomass alternative sources. The deadline to complete this project was supposed to be in June 2009. After 14 years barring a change of government for 5 years and a projected costs of US$3.2million, all the villages in the hinterland remain without sustainable and alternative sources of energy. An inclusion to this project was to determine the feasibility of a wind farm which after 16 years it is unclear of the results of this study.

To compliment the hinterland electrification initiative and provide energy access to the rest of the country, the grand master of all projects was the Amaila Hydro falls, a project that would increase the electrical supply countrywide and reduce the energy dependency on fossil fuels. The project was designed to build a dam on the Amaila River in the Kuribrong village of Potaro Siparuni (Region 8) in partnership with Norwegian Climate Facility and the Inter-American Development (IDB) who provided a US$80 million subsidy. This US$858.1 million-dollar project with an expected capacity to generate 165 megawatts (MW) if completed in 2013, would have been the largest public funded to date. However, the project was shrouded in corrupt practices with Sithe Global, the hand-picked contractor to complete the road to the waterfalls pulled out in 2013 and then the new A Partnership for National Unity Alliance For Change (APNU+AFC) administration discarding the project. There has been a commitment to restart the project but millions already spent on a failing project, it is inconceivable how the government will attempt to recoup the losses and minimize cost while ensuring the project viability. The current administration has had a poor track record of ensuring any project was completed on time and within its budget.

The Marriott Hotel Georgetown Guyana was no different. Actually, this magnificent 197 bed facility with restaurants, shops and a conference center was rooted in secrecy from the onset. The hotel initially cost of construction and furnishing was approximately US$43 million but being registered illegally under Atlantic Hotel Inc and against the National Assembly’s approval, the costs doubled to US$98 million. The hotel was built by SCG International a company at the time was facing charges of corruption at the time in Trinidad and Tobago. Furthermore, the engineering contractor M A Angeliades Inc was facing criminal charges at the time in 2011 and was barred by the Construction Authority in New York until 2015. After completion in 2015 with unapproved funds from the National Treasury, the hotel was in financial discomfort having a US$15.25 million mortgage with Republic Bank. It was suggested by an audit that the hotel be sold with haste under the following condition:

“The Agreement does provide for the sale of the hotel to a reputable individual or firm so that it can roll-over to the new owners. The vendor must have sufficient financial resources and liquidity to fulfill the obligations under the Agreement; be of good moral character with no criminal record; and does not have ownership interest in a branded hotel. Once the hotel is sold, AHI should be liquidated.”

Earlier this year, the Government of Guyana announced rolled out the bidding period for sale of the hotel and the winning bid for US$90 million dollars by X LLC owner Rami El Batrawi who was investigated by the Security and Exchange Commission (SEC) for manipulation of a stock. It is incredulous that the government went ahead with the sale despite this evident piece of research that is a violation to the agreement of sale.

All of these failed projects point to a petri dish culture of corruption that has culminated for many years and have only disenfranchised the citizens of resources that could enhance their livelihood. Ban Ki-Moon, former UN secretary general articulated how corruption affects human development as “disastrous impacts” of corruption on development, “corruption diverts funds for education, health and public services, exacerbates violence and insecurity and contributes to dissatisfaction with public institutions, disillusion with government in general, and spirals of anger and unrest.” He urged the global community to reject corruption and embrace transparency, accountability and good governance to facilitate a better future for all.

Sincerely,

Collin Haynes MPH MBA

Berbice Bridge Company Incorporated (BBCI), Collin Haynes MPH MBA, Leviathan, regime, transaction

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