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‘No evidence of work on $2B GDF wharf project’ – AG Report
Photograph of the site for the wharf at Coast Guard Headquarters where no works has commenced- (Source: AG report 12 July, 2024)
Kaieteur News – The $2 billion wharf project being constructed by the Guyana Defence Force (GDF) at its Coast Guard Headquarters, Ruimveldt is behind schedule, Auditor General (AG) said in his 2023 report.
According to the report the contract awarded by the National Procurement Tender Administration Board (NPTAB) was for the construction of a reinforced concrete wharf at Coast Guard Headquarters, Ruimveldt in the sum of $2.040 billion against an Engineer’s Estimate of $2.624 billion.
The Contract was signed on December, 28 2023, with construction period of thirty months for completion, with a commencement date of 26 February 2024 and completion date of 26 February 2027.
The contract stipulates a defect’s liability period of twelve months after practical completion. As at 31 December 2023, an Advance Payment totalling $191.659M was paid to the Contractor, Kares Engineering Inc; the sum represents 9.39% of the total Contract sum.
However, a physical verification of the completed works by the audit office revealed that the contractor was not mobilised to site and no work had commenced, while four months had already elapsed since the start date of 26 February 2024.
The Audit Office has therefore recommended that the GDF urge the contractor to pursue the works, closely monitor the work progress and provide a copy of the Performance Bond for audit examination.
The wharf project is geared specifically towards properly accommodating the GDF’s new patrol vessels. The National Procurement and Tender Administration Board (NPTAB) has since come under scrutiny for the award of a $2.1 billion to Kares Engineering Inc given that the company missed the benchmark for being a responsive bidder. Correia and Correia Ltd, feeling wronged by the decision, had lodged a complaint with the Public Procurement Commission (PPC).
The complaint included allegations that Kares Engineering’s bid was “non-responsive based on the Financial Assessment within the Evaluation Criteria” and therefore should not have been awarded the contract.
The PPC’s findings indicated that Kares Engineering’s bid was 77.8 percent of the Engineer’s Estimate, below the 80 percent benchmark set in the evaluation criteria. In contrast, Correia and Correia’s bid was at 82 percent. The PPC noted that S. Jagmohan Construction and General Supplies Inc. would have been the lowest evaluated bidder but did not lodge a complaint.
Early December 2023, eight contractors submitted their bids to NPTAB for the project. The firms are: R. Basso & Sons Construction Company – $5,688,972,220, S. Jagmohan Construction & General Supply Inc. – $2,146,098,430, Correia & Correia Limited – $2,176,084,034, Arjune Construction Inc. – $2,063,024,470, Memorex Enterprise – $2,950,673,991, Kares Engineering Inc. – $1,839,524,630, Ivor Allen – $5,942,806,223, and Gordon Winter Co. Limited – $5,191,750,016.
By December 27, 2023 the project was awarded to Kares Engineering. To this, the PPC underscored the importance of transparency, stating, “The publication of contracts is of utmost importance not only for information and related transparency purposes but also for the lodging of a ‘Bid Protest’.”
The PPC’s investigation revealed inconsistencies in the NPTAB’s contract publication process, adding to concerns about transparency and accountability. While the NPTAB claimed the contract award was published on its website, the PPC’s checks indicated otherwise, undermining confidence in the procurement process.
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