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Govt. seeks new contractor for Kato school dorms, after collapse of $285M contract
(Kaieteur News) – After awarding a $285 million contract in 2021 for the construction of the Kato Secondary School dormitory, the Regional Democratic Council (RDC) of Region Eight is now seeking a new contractor to complete the project after the initial contract failed.
The region in an invitation for bids published in Wednesday’s Guyana Chronicle stated that the completion of the dormitory is estimated to cost $120,730,286. Bids for the project are expected to open on May 20, 2026 at the National Procurement and Tender Administration Board.
In September 2021, Region Eight Regional Executive Officer, Peter Ramotar signed a $285 million contract with Reiaz Akbar General Construction Services to construct the dormitory. The facility which was set to accommodate some 300 students was expected to be completed within three years.
Images from the Auditor General’s 2024 Report of the Kato Secondary School dormitory back in July 2025.
Former Local Government Minister, Nigel Dharamlall had witnessed the signing of the contract. The Department of Public Information reported at the time that the minister informed the contractor, “It is our expectation that the project will be completed on time. The Kato Secondary School had some issues before… we would not like to negotiate beyond the contracted completion period.”
That contractor however, failed to meet the ministry’s expectation because the dormitory is still incomplete and now five years after the 2021 contract, the government is seeking a new contractor to execute the works.
Regarding the Kato school dormitory, the project was also flagged in the Auditor General’s (AG) 2024 report.
The report stated that an award for the construction of Kato Secondary Dorms was made in 2021 by the National Procurement and Tender Administration Board (NPTAB) in the sum of $285.437 million against an engineer’s estimate of $300 million.
“As at 31st December 2024, the sum of $249.995 was paid to the contractor,” the report disclosed.
The Auditor General detailed that based on physical verification conducted on July 16, 2025, it revealed that no works were ongoing, while the contractual completion date expired since 2023 and no approved extension of time was seen.
In addition, at the time of reporting in September 2025, no measured works breakdown was attached to the Payment Vouchers presented and examined, the report stated.
“As such, works paid for against actual works completed and whether or not the contractor has been overpaid, could not have been verified,” the AG related.
Responding to the Auditor General, the regional administration indicated that the project encountered several setbacks. The region explained that “the annual rainy seasons (2022 -2024) created challenges as building materials were being trucked in thru’ the road which at times is impassable for weeks.”
“The contractor is in discussion with the office of the budget – capital- seeking solutions to issues that they have raised in relation to rising cost of materials over the period of the contract. The administration will do an updated assessment of completed works as recommended by the audit office,” the region said in the report.
In its recommendation, the audit office recommended to the head of budget agency that it should conduct an assessment of all works completed and prepare a detailed valuation, following which a comprehensive evaluation should be done to determine the best option for completing the building.
Kaieteur News understands that the dormitory was being built to support the $1 billion plus troubled Kato Secondary School which opened back in 2018. It was reported that the Kato Secondary School had faced issues of delays and defects after a contract was signed for the school back in 2012.
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