…$US$608M lost on ill-advised PPP projects
…Min. Patterson says in defending use of feasibility studies

THE Opposition party was on Wednesday called out for its failure to conduct feasibility studies on several large projects, leading to their eventual demise and wastage of some US$608M.

This was brought to the spotlight by Minister of Public Infrastructure David Patterson who was, at the time, responding to accusations of “wastage” in Budget 2019 on feasibility studies.

The claims were made by People’s Progressive Party/Civic (PPP/C) Member of Parliament (MP) Juan Edghill during his debate presentation in the National Assembly. Providing figures from a speech he prepared, Edghill came against the $100M earmarked for a feasibility study to be conducted on the new Demerara River Crossing, aimed at improving the flow of vehicular traffic.

Since the $300.7 B budget was presented on November 26 by Finance Minister Winston Jordan, Opposition Leader Bharrat Jagdeo and other opposition members had also referred to the budget as one filled with feasibility studies of projects which will not come to fruition.
Responding to the charges, Patterson branded them as “erroneous and misguided” and presented, instead, a list of projects which failed under the former administration due to lack of practical planning.

“The Honourable Member Irfaan Ali made merry about the amount of studies that this government is undertaking prior to construction and we are guilty of doing a lot of studies, but let me enlighten this house, and I want the honourable members Edghill and Irfaan Ali to keep count with me, of projects executed by the PPP/C with no feasibility studies,” Patterson began.“Skeldon Factory: US$200M; Cheddi Jagan International Airport renovations: $138M, no feasibility study; the specialty hospital, no feasibility study, that’s $125M; the fiber optic cable, no feasibility study, absolutely none. The East Coast bypass that we’re now doing…no feasibility study, none. The Berbice Bridge, none! No feasibility study and that is $50M.”

He concluded the list by adding the US$45M Amaila Falls’ loan for which he said no feasibility study was conducted, bringing the total amount wasted over the years in failed projects to US$608M.

The minister also criticised the former administration for its failure to conduct evaluation reports [on] the Amaila project “[These finances went] down the drain because they didn’t want to take the time to study it,” he chastised.

Some of the government’s projects for which feasibility studies will commence in 2019 include the proposed upgrade of the Lethem Aerodrome to a regional airport; the upgrading of the Parika Stelling to a modern marine transport hub; the Linden to Mabura road and bridge across the Kurupukari River; the East Bank/East Coast Road linkage project and the modernisation of Port Georgetown.

In his address to the House, Edghill also criticised the Public Infrastructure Ministry, saying it is undeserving of increased expenditure and ?progressing “slow” regarding developments. “This is an underperformed ministry, that’s the point I’m making. So, how could you ramp up expenditure and capital works in infrastructure when you’re not moving?” he questioned.

Addressing the question of time, Patterson begged to differ as he called out the opposition party on the Sheriff Street/Mandela Avenue road project currently being undertaken by the government which, he reminded, the PPP signed in 2010 but commenced years later in 2017. “Seven years! Including having to turn back because of flaws under your government,” Patterson said.
Growing demand

Regarding the increase of the Ministry’s budget to $35.32B, which represents 11.5 per cent of the national budget, Patterson explained in his speech why it is important for greater focus to be placed on the sector.

“There is an essential and growing demand for infrastructure to address critical issues such as climate change; organisation; trade competitiveness and the future social upliftment of our society. To satisfy these demands effectively and to deliver lasting economic and social development comparable to the emerging economies of Asia , Latin America and the Middle East, our government will continue to provide the policies and financial resources to build a modern, efficient and robust public infrastructure,” he said.

He later added: “The $35.32B allocated of our 2019 estimates [which] support infrastructure for integration, will result in improved movement of people and goods, both nationally and internationally; enhanced reliance in the coastal and riverine communities and improved efficiency in services delivered to the citizens of Guyana. Thus, we will continue to build on the foundation laid since our ascension to office in May 2015.”