Funds are available but no timeline has yet been set for the commencement of two of India’s major projects here: the Ogle to East Bank bypass road and an ocean-going passenger and cargo ferry for the North West, High Commissioner of India, Dr K J Srinivasa says.
In an interview with Stabroek News yesterday, Srinivasa noted that both projects are in the final stages of being approved.
Once this is completed, he said the procurement process will begin after which funds will be released for the works to begin.
“Funds are available. Funds are still there. We wanted a commitment by the Government of Guyana that they will work on the project because otherwise the funds would have gone back. But this Government is very clear. They want these infrastructural projects on a faster mode,” he said
“….. So we said we will keep the funds for you. Funds have been approved, they are there, they are sitting with the Exim Bank of India in Washington, DC. It’s just a matter of once the tendering is done, they have a schedule of release of funds once the contractor is finalised and it will start coming in,” Srinivasa added.
The High Commissioner said that while India is working at a “rapid” pace, approvals for such projects usually take several months.
“We are already working on it, our government is working on it……It’s a sizeable amount, we are now in that stage. So once that approval comes we will now go into the infrastructural and tendering process. We are working on a very rapid pace, I can tell you because these things take months to get approvals but this Government has been very active, responsive….This is in very late stages of approval from India, so once that comes in we will start the tendering,” Srinivasa explained.
Former President Donald Ramotar during his visit to India in January 2015 had received a US$50 million loan commitment from the Indian Exim bank to fund the road project.
The US$50 million project will see the first phase of the road constructed from Ogle, East Coast Demerara, to Haags Bosch on the East Bank which will later have a connection to Diamond, East Bank Demerara.
Under the APNU+AFC administration, alterations done to the design of the road resulted in the cost spiralling from US$50 million to US$208 million.
In 2017, APNU+AFC Minister of Finance Winston Jordan had signed off on the US$50 million loan with the Exim Bank of India for the construction of a 20-kilometre road from Ogle on the East Coast of Demerara, to Diamond on the East Bank of Demerara.
After being sworn into office, the PPP/C government had amended the design of the road so the project cost could be in line with the available sums. The proposal was accepted by the Indian Government.
The new road link is expected to serve as a corridor for communities on the East Bank, including Perseverance, Providence, Eccles, Peter’s Hall and Aubrey Barker Road. It will also provide a bypass away from the city.
The second major project is an ocean-going passenger and cargo ferry at the North West at the cost of $1.33 billion.
As it relates to this, Srinivasa said that Indian Government is at the stage of resolving some issues which were raised at the tendering process.
“So they raised some issues with the tendering last time, so we are trying to resolve them,” he said.
18 months
Once the issues are sorted, Srinivasa noted that 18 months from the date, the ferry will be provided.
“…I don’t have a timeline but I can assure you that once the thing is sorted out, 18 months from the day, the ferry will be delivered,” he said.
In an effort to accomplish this, Srinivasa said that India is actively engaging the Ministry of Public Works and the relevant authorities.
This project was stalled last year after New Delhi’s Exim Bank did not provide a no-objection to the contractor recommended by the government here.
The 2018 Auditor General’s report, which was presented to Parliament but not tabled, said that the sum of $1.33b had been allotted for the provision of an ocean-going passenger and cargo ferry.
However, the report said that the entire allocation remained unspent. Further, it said that the intended benefits of the programme, which included improved transportation, may be delayed.
The Head of Budget Agency stated that the sum of $1.133 billion allotted for this activity remained unspent at the end of 2018 mainly because India’s Exim Bank did not provide the no-objection to the award of the contract to the bidder recommended by the Government of Guyana.
The Head of Budget Agency also pointed to delays experienced during the tender process, including requests for explanations by an unsuccessful bidder, as well as clarifications and requests from the Exim Bank.
