-Four Indian companies pre-qualified

TRADITIONALLY, in any Indian line of credit, Indian companies are guaranteed 75 per cent of the work. However, in the case of Guyana and the construction of the Ogle, East Coast Demerara to Diamond, East Bank Demerara Road project, the Government of India has made a “rare exception” in bringing that figure down to 46 per cent.

Indian High Commissioner of Guyana, Dr. K.J Srinivasa, has confirmed that the project will now benefit from the participation of 54 per cent Guyanese labour and resources.
“When I was pushing for this, your Local Content Policy was not even finalised, but what I sincerely believe is, the local content in sense of your labour, and your locally available resources should be utilised to the fullest,” Dr. Srinivasa said during an interview with this newspaper on Thursday last.

He added, “If it is available here, then I believe we should spend the money here and develop the economy right here.”
Minister within the Ministry of Public Works, Deodat Indar, has confirmed that four Indian companies have already been shortlisted, as part of the prequalification phase of the project.
“This is now in [its] tender stage…bid documents [have been] released to the bidders,” Minister Indar said on Saturday. This newspaper was informed that the bidding process for the project will come to an end in August.

Commenting on the increased opportunities for locals to participate in the project, Indar said that the Government of Guyana has always been pushing for, and encouraging local content “as far as practical.”

High Commissioner Srinivasa has assured that all of the selected companies are “top of the line” with a wealth of experience executing major infrastructural projects in not only India, but other parts of the world. “In that way, I can say that quality can be assured,” Dr. Srinivasa posited.

He said that the project would also pave the way for local companies to be exposed to different construction techniques and methods being practised by the engineers of India.
The completion of the Ogle to Diamond bypass road has been delayed for almost seven years now. It was reported in August 2020 that the People’s Progressive Party Civic (PPP/C) government had cause to “retailor” the project to conform to the loan agreement with the Indian Export/Import Bank, and the Government of India.

Minister Indar had said that the new, four-lane project will extend from Ogle to Eccles, rather than to Diamond, thereby, saving taxpayers approximately US$158 million.
“Already, on the bright side, we were able to, in just six months, bring forward the approval of the new four-lane road from Ogle to Eccles, funded by the Indian Government, by almost a year,” President, Dr. Irfaan Ali, said during his inaugural address to the 12th Parliament in February.

The former A Partnership for National Unity + Alliance for Change (APNU+AFC) government had modified the proposed project, to allow for the road to run through Mocha. This however, resulted in a drastic increase in the cost of the overall project, due to the level of preparatory works needed for the realisation of that route.
“For you to do those swamps, the cost of the earth works pushed up the cost to US$208 million. Remember, the Indian Government only had US$50 million allocated to this project. So, we had to redesign the project to bring it to the original design,” Minister Indar had previously explained.

Funding for the project was secured by former President, Donald Ramotar, prior to the PPP/C demitting office in May 2015. Ramotar during an official visit to India had received the commitment of a US$50 million loan from the Indian Exim Bank to fund the road. The loan agreement was officially signed in 2017 by the then APNU+AFC Minister of Finance, Winston Jordan.

Works on the first phase of the project, which entails the paving of an Eccles to Diamond link, commenced shortly after the August 2020 change of government; it is slated to be completed in July.