CONTRACTORS residing in the mining town of Linden have spoken positively about noticeable improvements in the process of contracts being awarded, through the Regional Democratic Council (RDC).

In the past, this system was berated and criticised. Not only has there been a noticeable increase in local contractors benefitting from contracts as mandated by government’s 20% local content policy, but this is also creating a ripple effect in the township and is one means by which Linden’s economy is being nurtured. For 2019, Region 10 (Upper Demerara-Upper Berbice) received a budgetary allocation of $3.9 Billion.

While the contractors are the main beneficiaries of these contracts, the funds are however trickling down to all classes of residents. At first, contractors had complained about not being awarded contracts and therefore, very little of the billions pumped into the region yearly by central government was reaching the common man. While the situation is not perfect, contractors believe that it has got much better.

One of these is Michael Hercules. He said, “I would say that a lot more is being done, because if you look at the tender board that is out right now, I would say that 90 per cent of these contracts are being awarded to local contractors; so yes, I would say that you are seeing improvement in that regard,” he said. In addition, Hercules pointed out that there is also an improvement in the payment process as well, which was a sore issue in the past.
Another contractor who wished not to be named, said that there is indeed an increase in contracts being awarded to locals, as opposed years past and believes that this is because of the stern call made by the government. “Yes, there is improvement; for one, I was stigmatised because of my political affiliation, but now I am benefitting and I’m seeing others benefitting; so to be fair I would say, yes, better is being done. There is room for more, but better is being done,” he said.

Zooming in on the ripple effect created by this change, the contractor said that this is what Linden needs and while it will not solve all of Linden’s problems , more people are getting money in their pockets. “The saw mill would benefit; the hardware store would benefit; the truck man would benefit; the eggball lady at the corner would benefit; the lady selling the two guinness at the shop after work would benefit,” he explained.

These sentiments were echoed by Hercules, who said that the spinoffs are evident; and he also encouraged local contractors to continue down the trickling trail by also supporting their own. He said that while there are uncontrollable cases where items and labour need to be outsourced, it should not be a common practice. He related that while some materials may be cheaper in Georgetown, contractors should realise that the difference is not so huge, that it merits outsourcing. “They should remember that when you purchase from the hardware store in Linden, you are purchasing from an employer who employs Lindeners as well; and then most times you can get those items on a credit basis, which is better for you,” he encouraged.

Relative to outsourcing of skillsets, Hercules is encouraging, particularly youths in Linden to elevate and empower themselves in this regard. “There is a demand for persons to upgrade themselves, whether in academics or skills training, you know especially in the 21st century; so if we are saying we are not finding the skillsets in Linden, we are saying that persons who have the desire in the said field to get themselves upgraded, attend GTI, get the relevant qualifications.”

At April’s RDC statutory meeting, Regional Chairman Renis Morian said that a letter will be written to the Finance Secretary at the Ministry of Finance, seeking permission to grant local suppliers an advance payment, when contracted to supply the RDC with items needed in a specific time frame. This is to bring them up to par with what is done with suppliers from out of town. Morian had also made a call to youths to get their businesses registered to also benefit from small contracts.

Realising the economic power of the construction industry, the Linden Enterprise Network (LEN) has included same into its five-year Strategic Development Plan, which seeks to provide financial aid and technical assistance to contractors and others involved in the industry, which will empower them for even qualifying for these contracts.

Direct investment still needed
President of the Linden Chamber of Commerce, Victor Fernandes, believes that empowering contractors would create a positive impact in Linden’s economy, but opined, that what would create that major change needed is direct investment into the town. Contracts, he said, create short-term employment and the RDC can only procure what it has been allocated, which is once a year. He said investment which will create continuity of spending power is needed to fully transform Linden. “We require more than just that: we must get some direct investment, we need continuity and as the private sector, I would continue to advocate for direct investment,” he posited. Investments such as factories and industries for value- added production he believes, need to come to Linden and if central government cannot provide same at this time, the process and bureaucracy that is hindering private investors who have expressed interest in investing millions of dollars in Linden, should be reviewed earliest. One sore issue that has been of major concern, is the issuance of land for industrial purposes. He believes that the powers that be need to create an environment for investment in Linden, so that Lindeners do not have to be solely dependent on government for a means of earning, whether it be directly or indirectly.