-AG issues warning, says gov’t rolling out measures to ensure timely completion of all works

IN the wake of persistent delays plaguing major infrastructure projects in Guyana, the government will be rolling out a series of measures in an effort 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,’ unveiled a series of measures aimed at ensuring the timely execution of contracts and reinforcing the government’s commitment to upholding contractual obligations.

First highlighting the government’s stance on contract breaches and delays, Nandlall said: “All of this is part of the government’s no tolerance for breach of contracts and delay in the execution of contractual obligations.”

He stressed the need for swift action to activate relevant contract provisions, including liquidated damages and termination clauses, to hold delinquent contractors accountable.

He stated, “We have been speaking for some time of implementing different measures, different policies, different strategies to ensure that contracts are delivered on time [and] that breaches of contracts are minimised.”

One of the key measures announced by Nandlall is the resuscitation and functionalisation of units within various ministries, tasked with evaluating contractual performance and activating relevant contract clauses.

These units will be responsible for assessing delays, breaches, and other contractual issues and imposing sanctions on delinquent contractors, including liquidated damages, forfeiture of bonds, and termination of contracts.

Addressing criticisms from some quarters regarding increased bureaucratic layers and taxpayer burden, Nandlall clarified that these measures will not incur additional costs for the government or taxpayers.

“The intent is not to create another unit or another layer of bureaucracy,” he said, adding that existing staff within the Attorney General’s chambers will man the new unit, eliminating the need for hiring new personnel.

Nandlall further underlined the legality and transparency of the government’s actions, stating, “Under the law, under the Procurement Act, it also provides for further sanctions. For example, blacklisting of contractors once the proper process is followed.”

While acknowledging both support and criticism for the government’s decision, Nandlall reaffirmed the necessity of these measures to address delays plaguing infrastructure projects and ensure accountability in contract execution.

The 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 will 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 is the long-delayed Cemetery Road upgrade in Georgetown, which 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.