NDIA bought 10 undersized, inefficient pumps for $600M - AG Report

NDIA bought 10 undersized, inefficient pumps for $600M – AG Report

Dec 18, 2023 News

Former NDIA CEO Frederick Flatts (right) and Apollo Inc Representative Ajay Jha signing the pact. (Ministry of Agriculture photo dated August 18, 2018)

Kaieteur News – A recently published report by the Audit Office of Guyana (AOG) concerning the Ministry of Agriculture – National Drainage and Irrigation Authority (NDIA) activities has uncovered significant concerns regarding a contract valued at $600.886 million.

The contract was awarded by the National Procurement and Tender Administration Board (NPTAB) in the sum of US$3.602M equivalent to $753.397M on 05 June 2018 to Apolla International Limited for the design, supply, installation and commissioning of nine fixed and three mobile high-capacity drainage pumps and associated structures/equipment. The Contract was signed on 03 September 2018 by former Chief Executive Officer of NDIA, Fredrick Flatts.

Funding for the pumps was acquired under an India Line of Credit.

Total payments on the contract as at 31 December 2021 amounted to $600.886 million. It was noted for 2022, the entire sum of $152.511 million allotted for this project was not expended. The pumps were received in March 2020 and the installations were completed in 2021.

Shockingly, the 2022 AG report highlighted that 10 of the twelve engines supplied were deemed “undersized” and incapable of sustaining long-term operation for the designated pumps. Despite government requests for the contractor to replace these engines, none was replaced by the time of the report.

Notably, the installations of the fixed pumps were done at various locations, including Hampton Court, Devonshire Castle, Den Amstel, Hope, Nootenzuil, Mora Point, and Rose Hall, alongside mobile pumps at Church Street, Sussex Street, and Ruimveldt South.

In response to these findings, the Ministry of Agriculture acknowledged the unexpended sum, citing issues with the supplied pumps as the reason for the delay. Moreover, an assessment conducted by a technical team identified the need to replace ten undersized engines and utilize the remaining contract balance to rectify defects in the equipment.

However, despite the recommendation and communication from the Attorney General in August 2022, confirming the necessity to replace the engines, none of the 10 engines (three for mobile pumps and seven for fixed pumps) were exchanged as requested. The NDIA mentioned the supply of only one gear drive for the Devonshire Castle Pump Station, further emphasizing the unresolved issues with the project.

Conclusively, the Audit Office recommended continued engagement between the Agriculture Ministry and the Contractor to ensure the replacement of the ten engines, emphasizing the importance of proactive project management to detect and address issues promptly, thereby preventing delays and ensuring the intended budget utilization.

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and Ruimveldt South, Church Street, court, Den Amstel, Devonshire Castle, Hope, Mora Point, Nootenzuil, Sussex Street

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