The Transport and Harbours Department (T&HD) yesterday signed a US$12.7M contract with an Indian company to commence the construction of an ocean-going passenger and cargo ferry for the North West District and other parts of the country.
The signing marks the end of a years-long delay in the major project which is funded by the Indian Government.
The contract was awarded to India’s shipbuilding company, Garden Reach Shipbuilders & Engineers Ltd (GRESL) at a sum of USD$12, 733,403.
The vessel is expected to be delivered in the next eighteen months and will provide larger capacity for cargo, shorter travel times and safer and more comfortable services to commuters.
Minister of Public Works Juan Edghill yesterday said that the development signifies the “diplomatic” collaboration between the two countries.
“When we examine the facts and history, today is a significant day as it relates to the kind of diplomatic collaboration between the PPP/C’s administration, Government of Guyana and Government of India,” Edghill said.
Edghill said that the funds for the project were secured since 2015 by former President Donald Ramotar.
However, he explained that there was a delay after the previous administration attempted to award the contract to the highest bidder.
This, he said was in breach of Guyana’s and its bilateral partner’s procurement procedures. “…Which was not flying at the procurement levels….You are dealing with a bilateral partner that has processes and they expect that your own processes in your own country will also be followed,” he noted.
Edghill further related that the MV Kimbia, the vessel which currently operates the north west route has since developed some “serious” problems and is required to go into dry dock.
“….These vessels are aged and that is one of the reasons why the PPP/C in its previous administration was seeking to renew and modernize the fleet,” he said.
Fixed
In the interim, Edghill said the MV Kimbia will be fixed.
“…We got to get it into dry dock, we got to get her fixed, we got to get her back in the ocean, we got to get her into the North West to bring out and carry in people, while we wait on this modern vessel…we got to work on the maintenance while we get the new projects in place,” he related.
Meanwhile, High Commissioner of India to Guyana , Dr K J Srinivasa expressed satisfaction that the project was revived after a long “hiatus”.
He said that the funds for the project are part of a US$18M grant/line of credit. US$8M is in the form of a grant and US$10M in a line of credit.
According to Srinivasa, the Government of Guyana has since proposed that the remainder of the sum be utilized for the upgrade of the stellings that will serve the vessel.
This proposal, he said is being examined by the Government of India.
“The Government of Guyana proposes to utilise the balance … of US$18 million for the upgrade of the marine stellings that will serve this vessel. The proposal in this regard received from the Government of Guyana is being examined by the Government of India,” Srinivasa said.
According to Edghill, the payment for the construction of the vessel will be done in three phases.
In a matter of days, he said 20% of the total cost will be disbursed to GRESL. He said another 40% will be paid later this year at various construction milestones while the remaining 40% will be released after the installation of the main engines and steering systems and upon receipt and acceptance of the vessel.
General Manager of the T&HD, Marclene Merchant signed the contract during a ceremony held in the Ministry of Public Works’ boardroom yesterday afternoon.
Among those present were Srinivasa and representatives from GRESL.
A release from the Indian High Commission yesterday said that the ferry is to be used in the North Western region as well as South Western region of the country up to Kwakwani on the Berbice River. It will be used as a coastal as well as a river service vessel.
This project was stalled in 2019 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 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.
According to the release from the Indian High Commission, GRSE is a prominent shipbuilding company in India under the administrative control of the Ministry of Defence, primarily catering to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard. In addition to its ship and warship building capacity, GRSE is also engaged in engine production and other engineering activities.
