Quantity surveyor calls for more info on terminated BBP pump station contract
Quantity surveyor, Donald Rodney is calling for more information to be provided to the general public as it relates to the terminated Black Bush Polder (BBP) Pump Station project.
Some of his questions include what are the costs of moving any materials from the site to elsewhere and what is the weekly or monthly cost for these recurrent items? He is also seeking answers to whether the movement of materials from the site is under the surveillance of an auditor.
In a recent letter to the Stabroek News, Rodney said that “a feature of this administration, as well as the previous, is that very little in infrastructure is transparent” as he added that those interested need to observe “what is said in relevant government answers and releases as well as carefully note points on which said answers are silent, in order to infer a picture.”
He pointed out, that now that the current opposition, with parts of the media, are productively pressing the National Drainage and Irrigation Authority (NDIA) and the National Procurement and Tender Administration Board (NPTAB) in some way, on the termination of the almost $1B contract at Black Bush Polder, “answers must be provided.”
Despite several queries from the Sunday Stabroek to the Minister of Agriculture (MoA), Zulfikar Mustapha, and NDIA Chairman, Lionel Wordsworth throughout the week, no follow-up statement on the matter was provided.
Rodney in his letter pointed out that after a visit to the location by APNU+AFC MP Ganesh Mahipaul raised questions about corrosion of construction steel languishing on site and being wasteful of taxpayers’ money, NDIA responded that this contract was terminated for poor quality and performance of works and that the project will be retendered and that materials are being moved to a safe location.
“We have to assume all pre-conditions for an NDIA termination but must be mindful of the contractor’s right to challenge and to present its own case. From what NDIA has said the project was terminated on September 23 last. From that date, the informal license of the contractor to possession of the site is revoked and NDIA takes over certain responsibilities with their attendant costs, previously that of the terminated contractor: broadly these are, responsibility for safety of the public including for small children who might wander onto the site; security for the project site against theft and vandalism; and protection of the works itself against deterioration”, he wrote.
According to Rodney, the MP raised his concern on the latter, in regard to the steel. Notwithstanding NDIA’s response, he said the MP “must keep up demands for information of this kind, including the cost of moving any materials elsewhere, since until the new contractor is physically on site, the mentioned items and costs are necessarily incurred, and under its governance role, NDIA now ought to assign responsibility for these items, the costs of which will mount over time.”
He said, “Questions could include: what is the weekly or monthly cost for these recurrent items? Is the movement of materials from the site under the surveillance of an auditor? Still on the matter of governance, once termination is made, there should be no further payment to the terminated contractor, until after a new contractor completes all work. Even valid payment certificates not yet disbursed to the terminated contractor must be stopped.”
He pointed out that in this regard, one of the releases stated “…a Project Completion Certificate would have been issued by the engineer for works completed and materials on site.”
“Editor, this statement is at best contradictory and raises a Red Flag as to if money was paid to the terminated contractor at this juncture. The MoA and NDIA themselves state that the project is not completed, only 14%; would the ‘experienced engineer’ responsible for the completion certificate be asked to give answers now – or must we all await his or her appearance before the Public Accounts Committee, in say five years’ time?”
Furthermore, he added, that the same release continues, “therefore, the contractor would only be paid for works that were satisfactorily completed and materials on site as is the case when there is a fundamental breach of contract.” This statement compounds his dismay, he added, noting that if there is a ‘fundamental breach’ resulting in termination “there must be no payment until the works are completed by a new contractor, all extra incurred costs are totaled as consequential losses of NDIA, and the terminated contractor may well owe a debt to taxpayers. Prompt answers are particularly due from the Authority in regard to bonds.”
Additionally, he noted that the release also states that “at the time of termination, the advance mobilization and performance bonds were still active. As such, monies can be recouped.”
“Editor, these bonds have useby dates and hence must be demanded immediately after default. Monies must be recouped – now – before the bonds expire. Question: what are the expiry dates of the bonds, and have they been called in? SN has posed the question of what would be the cost of re-tendering, to which some answers can be fielded in due course. In the meantime, NDIA has boldly stated it will provide information “… as it relates to transparency and accountability of its projects”; hopefully the above will
help stimulate further questions”, Rodney added.
Following questions raised by Mahipaul, the NDIA on October 9th disclosed that the $978m contract for a pump station at Black Bush Polder, Corentyne was terminated in September for poor work and several others had been granted extensions for a
variety of reasons.
In its statement disclosing the termination of the BBP pump station contract, the NDIA did not identify the contractor but Mahipaul in a letter to the October 8th edition of Stabroek News had identified the company as Yunas Civil and Building Construction.
“With regards to the construction of the drain-age pump station to irrigate Black Bush Polder Farm-lands, Region No. 6, this project was terminated on September 25, 2023 by the NDIA for poor quality and performance of works being executed. This project will soon be retendered”, the NDIA said.