Small contractors get $6.9b in contracts for Region Six roads

Some of the contractors (DPI photo)
Some of the contractors (DPI photo)

-another $7b to be sealed shortly

Some 389 small contractors in Region Six will benefit from $6.9 billion in contracts for the upgrading of 400 roads across the county, a Department of Public Information (DPI) release stated yesterday.

The agreements were inked between the government and the contractors at the offices of the Regional Democratic Council (RDC) in New Amster-dam, Berbice. Officials present at the signing ceremony included, Vice-President Bharrat Jagdeo; Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr Ashni Singh; Minister of Agriculture, Zulfikar Mustapha; Minister within the Ministry of Public Works, Deodat Indar, and Regional Chairman, David Armogan.

Delivering remarks at the ceremony yesterday, Vice President, Bharrat Jagdeo said that an additional $7 billion in contracts will be tendered for larger contractors with the capacity to handle more extensive projects.

He explained that the rapid expansion of public sector projects means that more contractors will be required for the successful implementation of the government’s ambitious plans. As such government intends to assemble a larger pool of contractors nationwide.

Almost 2,000 new contractors have entered the field since August 2020, DPI said.

The Vice President acknowledged that integrating these new companies into the bidding process has not been without challenges. Concerns have been raised about multiple family-owned businesses bidding for contracts and in turn, this has led to an uneven distribution of opportunities.

“If we go that route, we won’t be able to broaden the contractor core and secondly, when people find this out, you don’t get the blame, we [government] get the blame. It’s the first thing they are saying is the PPP/C is tolerating this and it is something that we are very intolerant of.” 

In an effort to address these challenges, government has introduced a rating system to allow small contractors to secure deals without being subjected to a competitive bidding process, DPI explained.

Meanwhile, Minister of Public Works, Juan Edghill, explained that the new process will expand the scope of opportunities for more Guyanese to benefit from the country’s booming infrastructural developments.

“It gives people who feel they otherwise would have been excluded, the opportunity to enter, and secondly, it gives people an opportunity to grow from a few million dollars to projects of up to $15 million, and as you grow…you will be able to graduate to the top,”  Edghill stated.

He outlined strict rules for contractors, including mandatory testing of roads to ensure they meet the required 4,500 PSI strength. Further, contractors whose work fail to meet this standard will have to redo the project or risk having their contract cancelled without pay.

PSI, or pounds per square inch, measures the strength of concrete after it has cured, specifically indicating its compressive strength.

To promote transparency, contractors and engineers must introduce themselves to communities prior to the

commencement of work and provide project details and a bill of quantities. This particular measure aims to involve residents in the monitoring process and to ensure projects meet the specified standards.

Contractors were warned against subcontracting or selling their contracts to third parties. Such practices, Edghill said, would lead to their immediate disqualification.

Meanwhile, the ministry will maintain a list of high-performing contractors, ensuring only those who deliver quality work will be considered for future projects, the release added.