BY no surprise, the $96 Billion allocation to the Public Works ministry, the largest of any allocation in Budget 2022, was subject to heavy scrutiny from the political opposition, Tuesday afternoon, in the Committee of Supply.

Responding to questions on the capital and current expenditure falling under his purview was Minister of Public Works, Bishop Juan Edghill.

Under the Appropriation Bill 2022, the Public Works ministry will receive $88 Billion for capital expenses including major development projects, and $8 Billion for current expenditure.

The Committee of Supply, chaired by Speaker of the National Assembly, Manzoor Nadir, will now consider the estimates and expenditure of Budget 2022 before the Bill is referred to and voted on by the National Assembly.

New Demerara Harbour Bridge
A Partnership for National Unity + Alliance For Change (APNU+AFC) Member of Parliament (MP), David Patterson questioned the status of the contract awarded in relation to the new harbour bridge across the Demerara River.

Minister Edghill explained that the public tendering process saw participation from international companies which saw an evaluation of the bids, and a ‘no objection’ from the Cabinet of Ministers for the lowest bidder, in keeping with procurement laws.

Negotiations were opened for the completion of the contract, he explained, noting that the local negotiating team—which comprised legal, engineering, financial, and management expertise—signalled to the National Procurement and Tender Administration Board (NPTAB) their intention to terminate the negotiation process.

Minister Edghill explained that the experts found the arrangement would not have served Guyana’s best interest, which lead to an engagement of the number two lowest bidder.

MP Patterson, a former minister for public works under the David Granger-led APNU+AFC government, pressed Minister Edghill on whether the new Demerara River bridge will cost US$600 Million.

Objecting to the speculation, Minister Edghill reminded that the first bidder’s price was US$256 Million. He said that in the negotiations of terms, the intention is to drive the cost down.

With the placement of the new bridge, Minister Edghill said some land acquisition and displacement would be necessary as happens with major development projects. He, however, committed to following the Laws of Guyana and ensuring acquisitions are made at market value.

Minister Edghill asked the Committee to be patient as he was not intending to release to many details which could provide excessive details on budgeted amounts relating to the development, thus restricting contractors from taking advantage of the process through excess information provided.

UN Agencies Rent
Turning attention to rental paid for housing various agencies of the United Nations (UN) in Guyana, APNU+AFC MP Annette Ferguson questioned the sum allocated under the budget line for rental of buildings including cost and location.

Minister Edghill reminded the Committee of Guyana’s responsibility to host UN agencies, but bemoaned the arrangement under the previous APNU+AFC government which left Guyana in a position of paying more money to house UN agencies in one compound which had less space than the buildings which they previously occupied.

He insisted that a more prudent arrangement, which could save Guyana billions of dollars in the long-term, would be to identify a portion of government land and construct a complex for the UN agencies.

The Minister said if this arrangement were explored now, however, government would have to pay one year’s rent to the other contracting party.

“We appreciate and welcome all the UN agencies operating in Guyana, and we will be working to ensure they are in an energy-efficient, cost effective facility where they can all be comfortable,” Minister Edghill said emphatically.

Civil Aviation Authority
A $384 million subsidy to the Guyana Civil Aviation Authority (GCAA) raised concerns for APNU+AFC MP Annette Ferguson. Ferguson served temporarily under the APNU+AFC government as minister within the ministry responsible for public works.

In a detailed response, Minister Edghill reflected that when the People’s Progressive Party/Civic (PPP/C) government demitted office in 2015, more than $1 Billion was left in the authority’s bank account.

He said the party returned to government in 2020, they met a deficit in that account. Added to that, the COVID-19 pandemic which affected the amount of global flights also affected the authority’s ability to generate revenue from navigating flights that were utilising Guyana’s air space.

Minister Edghill, further justifying the contribution to GCAA, said the authority could have lost its International Civil Aviation Organisation (ICAO) compliance if it did not maintain a reserve fund of a particular level.

“The reduction [in the contribution to GCAA] this year is an anticipation that overflights will pick up,” Minister Edghill explained, adding that he has already received reports that there has already been an increase in the use of Guyana’s air navigation services which marks somewhat of a recovery.

Berbice River Bridge
MP Patterson raised a red flag that the same allocation was made to the Berbice Bridge Company from 2020-2022. He questioned whether this was an indication of low traffic in Regions Five (Mahaica-Berbice) and Six (East Berbice-Corentyne) despite government’s claim of development in that area.

Minister Edghill rebuffed that the Berbice Bridge Company is a Public/Private Partnership (PPP) and reminded that the Bridge’s administration is currently engaging the court relating to a matter of acquisition which occurred during Mr Patterson’s time as minister for public works.

Minister Edghill communicated that a line of communication has already been opened with the bridge’s administration underscoring his government’s commitment to not acquire private investments unnecessarily. He said also that an arrangement will be met in the best interest of all parties.

Roads, bridges, sea defence maintenance
MP Ferguson questioned what she called the 100 per cent increase in the budget line for maintenance of roads. She asked about a pot hole located in Meadow Brook Gardens and when this would be fixed.

Minister Edghill debunked the claim, noting that the increase is only $600 million from $1.5 billion in 2021 to $2.1 billion in 2022.

He clarified that it is not the responsibility of the public works ministry to fix streets located in communities, a responsibility held by the local government bodies.

“The billions of dollars [that] city council collects, they have a responsibility to maintain the roads in the city of which they have been doing zero,” the minister chided.

He said the current allocation is for the maintenance of main access roads which has increased since there are more access roads to be maintained with massive capital injection and infrastructural work set for 2022.

Returning to the issue raised by MP Ferguson about the pothole in Meadow Brook Gardens, Minister Edghill urged that she make contact with him and provide a description of the situation. “I’m sure I can do something about it,” he committed.

On sea defence, MP Ferguson questioned the $310 million increase from 2021 to 2022, prompting Minister Edghill to respond that the state of the sea defence when his government took office from the APNU+AFC was crisis level.

He said the allocation takes into consideration climate change, changing weather patterns and Guyana’s vulnerability along the coast and rivers. “We are prepared to deal with any eventuality,” he insisted.

It was a query from APNU+AFC MP Jermaine Figueira which left the Minister perplexed. MP Figuiera inquired whether as part of the budgeted allocation for maintenance of bridges, the Wismar/Mackenzie Bridge would be maintained.

Minister Edghill expressed his disappointment in the question since the bridge in question does not fall under his ministry but instead is a toll bridge held jointly between the Linden Mayor & Town Council and government’s privatisation unit, the National Industrial and Commercial Investments Limited (NICIL).

The bridge toll, Minister Edghill explained, is intended to pay for the bridge’s maintenance as well as social services to the community.

“The fact that we are developing the corridor all the way from Corentyne, connecting with the Deep Water Harbour at the Berbice River mouth, we are coming all the way to Georgetown, we are upgrading the Linden/Soesdyke Highway, we are building the road to Mabura, we are getting the bridges from Mabura all the way to Lethem, we know that that bridge that links Mackenzie and Linden would have to be expanded and developed. There are studies that have been done, and at the appropriate time, the capital investment will be made to get that fixed. But right now, the capital investment is being made for the more important bridge which is the new Demerara River crossing,” Minister Edghill said.