THE Auditor General has reported that of the $1.220B budgeted in 2015 under the Government of Guyana Highway Improvement, East Coast Demerara Road Project, which commenced in 2011, only $95.6M has been spent.The project includes supervision and upgrading of the highway from Better Hope to Belfield and the sum expended was on Lot 6 — Mon Repos to De Endragt ($33.9M); Lot 7– De Endragt to Good Hope (S59.6); and purchase of highway improvement permit ($2.1M).
According to the Auditor General in his 2015 report, no work was done to Lot 1 to 5, which were at all different stages of completion, with Lot 1—Better Hope to Montrose (50 per cent complete); Lot 2—Montrose to La Bonne Intention (95 per cent complete); Lot 3—La Bonne Intention to Beterverwagting (80 per cent complete); Lot 4—Beterverwagting to Triumph (50 per cent complete); and Lot 5—Triumph to Mon Repos (97 per cent complete).
The contract for Lot 1 was terminated by the Ministry of Public Works on July 31, 2012, citing a breach in contractual obligations contrary to Clause 15.6 “Corrupt or Fraudulent Practices” by the contractor as recommended by the Attorney General.
“At the time of this report in September 2016, there was no evidence to confirm that the ministry was able to recover the sum of $81.6M, which represented the contractor’s indebtedness based on a valuation at the time of the termination in accordance with Clause 15.3 of the contract,” the report said.
The contractor has since sued the Government for wrongful termination of contract, and the matter is before the High Court.
The report also noted that works completed on Lot 3 was $157.7M, but payments made to the contractor totalled $278.3M, resulting in excess payment totalling $120.7M, which is yet to be recovered by the ministry.
“In addition, the works completed on Lot 4 was $76.9M; whilst payment made to the contractor amounted to $209.6M, resulting in excess payment totalling $132.649M, which has not yet been recovered by the ministry. Further, an amount of $14.8M was still to be recovered in relation to an advance payment made under Lot 5,” the Auditor General noted in his report.
Meanwhile, the East Bank Demerara Four Lane Extension Project was separated and awarded in three lots in 2011.
As of September 2016, works on Lot 1—Providence to Covent Garden was still incomplete, even though the extended completion date for works was December 28, 2014.
Works on Lot 2— Vreed en Ruste to Prospect and Lot 3 – Diamond were practically completed, with minor remedial works being carried out to two sections of the western carriageway under Lot 2.