The National Drainage and Irrigation Authority (NDIA) says that liquidated damages are being applied against the contractor for the A-Line pump station at Goed Fortuin, West Demerara.
The NDIA statement on Friday came following mounting questions by APNU+ AFC MP Ganesh Mahipaul.
“In the case of the A-Line Pump station, the contractor has not been able to complete the project on time. As a result, liquidated damages are now being applied. The NDIA has noted that the contractor demobilized several pieces of equipment from the site. As such, the NDIA has notified the insurance company providing bonds on this project, and a file on the current situation has been sent to the Office of the Attorney General for advice on the way forward”, the NDIA said.
On Friday, Mahipaul pressed for information on the project.
“The glaring omission of any reference to the A-Line Pump Station in recent dramatic rebuttals from Minister Zulfikar Mustapha and NDIA is undeniably concerning. Minister Mustapha and the NDIA are duty-bound to provide the people of Region Three and all Guyanese citizens with whole truths, not half truths, and a comprehensive explanation regarding the apparent stagnation of this vital project. Given the substantial investment and the protracted timeline, transparency and accountability are not just desirable but imperative”, he said.
Mahipaul pointed out that the construction of the pump station at A-Line began in June of 2022 at a cost of $717M and was awarded to Civcon Engineering Contractors. The consultant is Cemco Inc. and the award for supervision of construction is $19M. The Pump Station was supposed to be completed by 12th June, 2023 but an extension was granted and the new expected date of completion was 29th March, 2024.
In its response later in the day, the NDIA said it has taken note of questions raised by Mahipaul, relating to the construction of the A-Line Pump Station. In an effort to maintain full transparency and accountability, the NDIA said it wished to make known the following:
“Over the years, the Ministry and the NDIA crafted programmes aimed at delivering quality drainage and irrigation infrastructure across the country, especially in vulnerable areas. These efforts, however, have been met with challenges as, oftentimes, the NDIA encountered contractors who have underperformed.
These instances have been and are being addressed on a case by case basis. In some instances, the NDIA applied liquidated damages to contractors who have not been able to complete projects according to the contractual time period.
“In the case of the A-Line Pump station, the contractor has not been able to complete the project on time. As a result, liquidated damages are now being applied. The NDIA has noted that the contractor demobilized several pieces of equipment from the site. As such, the NDIA has notified the insurance company providing bonds on this project, and a file on the current situation has been sent to the Office of the Attorney General for advice on the way forward”.
The response said that the Ministry and the NDIA remain committed to delivering on projects aimed at improving the country’s drainage and irrigation needs.
“While it is not welcomed, contractors have been known to disregard their contractual obligations, thus hampering development in a number of critical sectors”, the NDIA added.