Even with an arbitration decision likely soon, gas-to-energy (GtE) contractors CH4-Lindsayca, have filed additional claims to their US$50m sums, Vice President Bharrat Jagdeo announced last Friday.
“There have been some additional claims by CH4 and Lindsayca, particularly as they relate to the soil condition and those would have to go through the technical process to see whether they’re justified or not…,” Jagdeo said during his weekly press conference which was held at Freedom House, Robb Street.
Jagdeo added that submissions have been made by both the state and the company to arbiters and that by the end of January there could be a ruling.
“I think by the end of [next] month, they will rule on the matter. So, if the parties accept that, their claims can be settled [that is] if they accept the ruling. If the parties decide not to, then you go to full arbitration,” he said.
Project lead for the Wales, West Bank Deme-rara GtE project, Winston Brassington had in Sep-tember made a presentation to an American Cham-ber of Commerce event at the Marriott Hotel and disclosed that 1.65 million cubic metres (m3) of sand had to be brought in for soil stabilisation. In addition to the sand, he said that 160,000m3 of loam and 25,000m3 of crusher run had to be used for the stabilisation exercise. This would have been at a significant cost which was not disclosed.
The government has made it clear that the adjudication process will not affect the continuation of works at the Wales, West Bank Demerara site.
Jagdeo had disclosed that the company had moved to a dispute adjudication board as it was locked in a stalemate with the Government of Guyana over the sum of US$50 million the company felt it was owed because the project site was delivered to it three months late.
Disputing a Reuters news agency report, which stated that the contractors for the project had taken government to arbitration for US$90 million for cost overruns, Jagdeo said the government was advised, following a review by its supervisory project consultant, Engineers India Limited (EIL), that the claim lacked merit. “It is US$50 million, not US$90 million…,” Jagdeo had clarified.
This dispute and delays to parts of the project, underline the high stakes in play for the government in what will be the largest ever public sector project in the country’s history and one that is coming with the promise of a cut in power rates by 50 per cent.
Although this means that only one aspect of the project will be delayed, and it will not interfere with the overall end of 2025 project schedule, it was the first time the PPP/C government acknowledged that it was at loggerheads with the project site contractor and that an arbitration hearing was pending. This was first reported by Reuters on April 8.