-AG says in stern warning
IN the wake of persistent delays plaguing major infrastructure projects in Guyana, the government has intensified its efforts to address contractual breaches and ensure timely project completion.
Attorney-General and Minister of Legal Affairs, Anil Nandlall, S.C., while speaking on his Facebook programme ‘Issues in the News,’ recently underscored the government’s commitment to holding contractors accountable for their failure to honour obligations.
He pointed out that urgency to address contract breaches comes amidst reports of protracted delays, prompting Minister of Public Works, Juan Edghill and President Dr. Irfaan Ali to personally visit work sites in recent months.
Nandlall highlighted the gravity with which the government views breaches of contracts, stating, “Now it is already a matter of public record that the government is viewing the breach of contracts by contractors…seriously.”
The Attorney-General underscored the Cabinet’s decision to enforce contractual clauses swiftly and rigidly in cases of breaches or unexplained delays.
These clauses, he noted, include penalties such as liquidated damages and the option for the government to terminate contracts and sue for damages.
“Government will not countenance negligence from contractors. Government will not countenance delinquency. Government will not countenance breaches of contractual obligations. These contracts are multimillion dollars in nature.
“So, it’s not a question of contractors not making money. There are cases where a delay may be justified, or a breach may be justified,” Nandlall declared, stressing the state’s commitment to upholding promises made to the public regarding project delivery timelines.
While acknowledging that some delays or breaches may be justified, Nandlall stressed that each case would be evaluated individually. He clarified that the government’s intention is not to unjustly penalise contractors but rather to ensure compliance with contractual obligations.
Addressing contractors directly, Nandlall warned, “You cannot breach your contracts with impunity.”
He expressed the government’s hope that contractors would fulfil their obligations promptly to avoid activation of contractual penalties.
Despite government urgings, delays have persisted, prompting Minister Edghill to issue ultimatums to contractors.
One such project, the long-delayed Cemetery Road upgrade in Georgetown, has faced significant setbacks.
Minister Edghill had announced that the contractor, Avinash Constructing and Scrap Metal Inc., must complete the project by the end of March 2024 or face contract termination.
The project, initially slated for completion by the end of January 2024, has faced extensions and delays, raising concerns about the contractor’s ability to deliver.
Additionally, the Conversation Tree to Dennis Street Project, valued at $1.8 billion, has encountered similar challenges. Despite extensions granted to Trinidadian company Kallco Guyana Inc., the project remains incomplete, prompting Minister Edghill to hint at possible sanctions.
During inspections of various infrastructure projects under the 2023 capital work programmes, Minister Edghill also noted delays at the Aubrey Barker Road expansion and Lamaha Street Extension projects.
