Gov’t warns of stiff damages if it wins arbitration with gas to energy contractor

Bharrat Jagdeo

-Jagdeo says it could be US$11 monthly

As they head to arbitration with government adamant in giving the Wales Gas-to-Energy (GtE) project contractor, Lindsayca/CH4,  a three-month extension instead of the US$50 million it seeks and a longer delay, the company was yesterday put on notice that it will be charged stiff liquidated damages if it loses.

“There is a delay, now because the site was handed over late… we said what we believe is justified is a three-month extension to the contract. We offered that. The company doesn’t want that. They want more money… they want a bit more money and they want a longer extension. They’ve asked for a longer extension.” Vice President Bharrat Jagdeo yesterday told a press conference held at Freedom House, Georgetown.

“We have an arbitration now taking place and if we win the arbitration, they would have only by April to deliver this project. They have given a schedule which shows [project delivery] later in the year – that is what Winston Brassington spoke of – but I did not want the public to think that we agreed to their schedule. We have only given an approval for three-month extension. So, if we win the arbitration and we stick with that schedule then there would be liquidated damages,” he added.