‘Guyanese Critic’ fails to advance construction 8 months after receiving $160M advance for Belle Vue Pump Station – AG Report

Oct 12, 2024 News

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– Agri. Ministry says project still in contractual timeline

Kaieteur News – The recently released Auditor’s General 2023 Report revealed that eight months after its commencement date, TEPUI Group Inc. – the company closely linked to Mikhail Rodrigues also known as ‘Guyanese Critic’ had no works in progress on its $870 million Belle Vue pump station project.

According to the AG, this was observed during a visit to the pump station project on August 14, 2024. It was reported that the project is being executed by the National Drainage and Irrigation Authority (NDIA) an agency under the Ministry of Agriculture.

The Report stated that an award for the construction of the Belle Vue Pump Station located in Region Three was made by the National Procurement and Tender Administration Board (NPTAB) in the sum of $870.563 million against the engineer’s estimate of $779.199 million.

It was reported that as at August 2024, the sum of $160.894 million was already paid to the contractor who was scheduled to commence the project in January 2024.

According to the AG Report, an examination of the contractor’s bid document and physical verification detailed that the award of the project was first made on August 14, 2023 for the sum $865.544 million which had corresponded with the amount stated in the Contractor’s Bid Form and priced bills of quantities.

It was noted however that this award was rescinded and a second award was made on September 15, 2023 to the same contractor for an increased sum of $870.564 million which is $5 million higher than the sum stated in the contractor’s bid, and which was the price of the NDIA’s Procurement Department priced Bills of Quantities seen in the contract.

In its findings, the AG detailed that an examination of the contractor’s bid submissions revealed that the contractor failed to satisfy nine out of the eighteen requirements set out in the evaluation criteria.

“The contract was signed on 22 September 2023, with duration of eighteen months for completion. According to documents seen, Addendum (№.1) to increase the percentage for advance payment from 15% to 30% was made on 21 September 2023, one day before the Contract Agreement was signed. Addendums №.2 and №.3 were for paying the Contractor for materials on site and changing the Contract start date from 6 October 2023 to 29 January 2024 respectively,” the Report revealed.

In its findings, the Auditor General stated that the contractor was mobilized on site; however, no works were in progress at the time of its visit in August 2024.

It was also disclosed that at the site, only the construction of two earthen coffer dams, excavation works, and demolition of the old existing sluice structure were completed, along with the installation of a test pile.

Additionally, two excavators were seen on site, along with two site office/containers, a water pump and a quantity of timber piles and steel sheet piles at the time, the report noted.

Following reports from the AG’s findings on the pump station project, the NDIA in a release on Friday clarified that the effective commencement date for the construction of the facility was February 6, 2024 and noted that the project is still within its contractual period.

“In accordance with the contract and upon submission of a mobilisation advance bond, an advance of $129,831,525 was paid. Subsequently, works commenced with the construction of cofferdam and the removal of an old deteriorated sluice which was within the footprint of the work area for which interim valuation number one, totaling $31,062,903 was certified by the engineering supervisory consultant following which payment was effected by the NDIA,” the agency provided.

The Authority noted also that as the works progresses, along with the supply of some of the steel sheet piles on site, greenheart piles and the installation of test bearing piles, interim payment number two, valuing $21,615,810 was also certified by the engineering supervisory consultant.

NDIA stated that the contractor is still on site and that the Ministry of Agriculture and its Technical Officers have been meeting with contractor and consultant to ensure that the projects are completed as per contract.

“It must be made clear that the NDIA values transparency and accountability in all its operations. We are committed to providing updates on project progress and addressing public concerns as they arise,” the statement said.

Meanwhile, this publication had reported that the $870 million contract was awarded to TEPUI early last year which saw works slated to be started then. But the project did not begin then due to delays and only started in January this year.

It was reported too that the contract was the subject of an investigation by Public Procurement Commission (PPC) after complaints were raised about the contractor’s failure to meet the technical requirements of the project. 

(‘Guyanese Critic’ fails to advance construction 8 months after receiving $160M advance)

 

 

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• Contract Agreement, National Procurement, NDIA, Tender Administration Board, Tepui Group Inc.

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