THE long awaited Georgetown to Barima-Waini (Region One) ferry is one step closer to reality, as a US$15.6 million ($3.2 billion) contract for the construction and supply of a passenger and cargo ferry vessel, and associated equipment, has been awarded to SHOFT Shipyard Private Limited.

Minister of State, Joseph Harmon, made the announcement at a post-cabinet briefing on Monday, explaining that the contract took some time as the funding arrangements had to be finalised.

It was in November 2016 that the government signed a US$18M Line of Credit agreement with the Export-Import Bank of India for the procurement of an ocean ferry to service the Georgetown to North West District (Region One) route. The USD$18M comprises a USD$8M grant and USD$10M concessionary loan to be repaid within 20 years with a five-year grace period.

“It has taken some time because these things have to go through our public service, that is one thing and the Indian public service is also another issue. It takes a bit of time from the actual conceptualisation of a project to funding for it. So it would have gone through several phases and would have now gotten to the point where a company has been identified to construct the ferry,” Harmon explained.

The call for a new vessel for the Region One route has been a long time coming as many describe the journey on the current vessel as treacherous and the service unreliable. The vessels that usually traverse the Parika-Mabaruma (Region One) route have “exceeded their lifespan” and the service provided to the residents has been compromised, as the vessels are in constant need of repairs.

Minister of Finance, Winston Jordan, on signing the contract had noted that the acquisition of the new vessel will ensure that the range of social and economic benefits is maximised. “This new ferry vessel will increase efficiency and operations by allowing passengers and freight to be conveyed more swiftly with fewer delays and reduction in travel time,” Jordan stated.

“Over the years, the residents of this Region have complained bitterly about the negative impact of the service on their lives and livelihoods. The introduction of this new passenger cargo ferry is to provide improved services to those residents who commute regularly between Regions One and Four.”

Meanwhile, another contract for $413M was also awarded, under the MoPI for the rehabilitation of the Leguan Ferry Stelling.