Expert project management deficit seems to be the issue between government and contractor and the GtE project

Dear Editor,

I read in your online newspaper about the ongoing drama with the Gas to Energy (GtE) project between the Government of Guyana (GoG) and the contractor, CH4-Lindsayca. Based on the reporting, it looks like there is a lack of discipline and rigor in managing this large complex $2 billion (US) project. Also, there seems to be a deficit in intellectual capital and expertise to manage this project, which is resulting in poor execution.

For the $50 million dollar dispute regarding the 3-month delay, if the Contractor provided the GoG with weekly detailed status reports on the issues and risks and the negative impact to the project schedule, along with the extra expenses that they had to incur, and made clear that the meter is running and costing $xxx,000 per day, $x,x million per week, and they delineated the breakdown of the cost items with the appropriate justification, then they should be in good shape before the arbitration panel for a favourable outcome.  If this was not the case, then they may have a difficult time recovering the $50 million.

For the other $50 million dollar for the extra work performed, this could be more problematic if there is no approved Project Change Request (PCR) for the additional funds. I don’t know how the contract is structured, but usually, any changes to scope, funding, timeline, technical design, etc. require a Client-approved PCR. The Client is not obliged to pay for the extra work if a PCR was not approved. No contractor should do extra work, if they expect to be compensated, without an approved PCR. If this rule was followed, there would be no dispute.

I am sitting here wondering how the parties can be so fast and loose with a strategic project that is the most expensive in Guyana’s history and promises so many benefits for cheaper reliable electricity. If you don’t hire qualified professionals to do the job, you don’t set the bar high for accountability and timely delivery of expected outcomes, and you tolerate mediocrity and poor performance, you get confusion, finger-pointing, and unnecessary problems.

Sincerely,

Krishundyal Singh