T&T contractor walks away with over $300M

Aug 06, 2024 News

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…despite not completing Conversation Tree Road project

Kaieteur News – A Trinidadian contractor has walked away with over $300 M in advance payment for the Conversation Tree road project which he never completed, Minister of Public Works, Juan Edghill disclosed last week.

Edghill at the time was responding to questions surrounding the project by Alliance for Change (AFC) Member of Parliament (MP) David Patterson.

Patterson had requested information in relation to total sums expended on the project, how much the Trinidad contractor, Kalco was advanced for the work that was never done.  Additionally, the Opposition MP sought answers whether liquidated damages were paid and the method which was used to award the project to local contractor S. Jagmohan Construction and General Supplies Inc.

In his response, Edghill revealed that the original contract sum for the project was awarded to Kalco in September 2022 for $830,293,458. The Minister said that the contractor was then paid $465,223,474 which translates as 56% of the contract sum for advance work.

Edghill further revealed that no liquidated damages or other penalties were applied, since the government reached an “amicable settlement” with the contractor. The minister claimed too that his ministry took possession of $153, 600, 000, worth of equipment from the company to cover the recovery of the outstanding monies owed on the advance payments.

Further in response to Patterson, Minister Edghill revealed that a new contract was awarded to S. Jagmohan Construction and General Supplies Inc via sole sourcing to the tune $844,027,988.

Commenting on the response, Patterson a former Minister of Public Works concluded that the Government allowed the contractor to walk away with at least $311,623,474. This sum is barring the 153,600,000 which Edghill claimed that the Ministry claimed was recovered when they seized the contractor’s vehicles and equipment.  Patterson pointed out to the Minister provided no proof of the seized equipment.

Added to this, Patterson noted there was no evidence that Kalco did any work at all since the contract was given to another contractor for a contract sum that $13million more than the original contract. Kaieteur News had reported that the Guyana Government was forced to end the contract it signed with a Trinidad and Tobago firm for the western section of the Conversation Tree Road project following months of delays and other setbacks.

The contract was handed to local contractor, S. Jagmohan Construction and General Supplies. The Department of Public Information had reported that the Ministry of Public Works reached an amicable agreement with the TT firm –Kalco, which would see it paying for works completed up to this point and the company settling all outstanding financial matters surrounding the project.

This includes returning the outstanding balance for work to be done on the project. The company also stood the cost of other liabilities after the project surpassed the contractual time frame and suffered prolonged delays. Back then, Edghill had noted that the action comes as a response to the project also causing significant inconvenience to residents and impeding crucial infrastructural development. “We have a light at the end of the tunnel when it comes to the Conversation Tree project. I want to officially announce that Kalco has been demobilised from the site. They have settled all of their obligations as it relates to their contract with the Government of Guyana,” the minister told the Department of Public Information (DPI) during an inspection of the ongoing works.

The minister said S. Jagmohan Construction and General Supplies had successfully executed the Eastern section of the project, demonstrating reliability and efficiency in their work. Emphasising the urgency of expediting the project to alleviate the inconvenience faced by citizens, Minister Edghill assured that efforts are underway to swiftly execute the remaining works well before Christmas. “We want this to be able to be done quickly. It is going to finish long before Christmas in case you’re thinking if this is going over to next year, not at all. I will hope that we are able to get this done by the end of August. We are pushing, the contractor knows that he has to work day and night and we are getting that done,” the minister asserted.

Acknowledging the patience and understanding of residents impacted by the delays, Minister Edghill extended heartfelt gratitude to the community for their cooperation.  Additionally, while the local contractor is tasked with completing the project, the ministry has engaged nine small contractors to rehabilitate the boulevard along Conversation Tree. Works include the construction of a walkway, installation of lighting, and landscaping to improve safety, accessibility, and aesthetics along the thoroughfare.

This will foster a conducive environment for residents and commuters. Minister Edghill outlined plans to extend the road network, linking Conversation Tree Road to Dennis Street and eventually to Vlissengen Road. This strategic expansion aims to enhance connectivity, alleviate traffic congestion, and facilitate easier navigation.

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• $300M, Conversation Tree road project, Edghill, Patterson, Trinidad contractor

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