Gov’t terminates $826M contract with BK for Yarrowkabra school
-claims delay in works despite lack of financing
With only 5% of the work done so far, the government has terminated the $ 826.7 million contract that was awarded to BK International on December 31, 2019, for the construction of the Yarrowkabra Secondary School.
Government stated that the inordinate delays in the completion of the works is the reason for the termination of the contract.
In a letter, dated November 1st, 2020, sent to the Company Secretary and seen by Stabroek News, Attorney General Anil
Nandlall informed that the contract was terminated with immediate effect.
“Thus far, your company only completed 5% of the scheduled works. As a consequence, your company has committed [a] fundamental breach of the terms of the contract and as a result the Government of Guyana hereby exercises its right to terminate the contract with immediate effect,” the letter states.
In the letter, Nandlall informed the company that the government will be enforcing the provisions in
the contract for the enforcement of the 10% of the contract sum as liquidated damages and the surrendering of the perfor
mance security as a consequence of the breach of the agreement.
The contractor was advised to remove any of his machinery and other equipment on site.
Stabroek News made efforts to contact principal of BK International Brian Tiwarie but phone calls to his mobile number went unanswered.
Meanwhile, a source familiar with the project and the procurement process explained that due to the fact that the contract was awarded at the end of 2019 in the absence of budgetary allocations for 2020, the contractor was unable to access financing. This, he explained, hindered the progress of the project severely as the contractor never received any mobilisation fee.
The contract, which is due to expire in March 2021, was awarded under the David Granger- led administration, although at the time of the signing the coalition was regarded as a caretaker government and critics have said that no contract of that magnitude should have been awarded.
A release from the Ministry of Education had said that the contract for the construction of the school was awarded to BK International Inc at a cost of $ 826,757,737. Then Minister of Education Nicolette Henry had handed over the contract to CEO of BK International Inc, Brian Tiwarie.
The ministry had said that the Yarrowkabra Secondary School on the Linden/Soesdyke Highway would boast modern
amenities inclusive of Information Technology Laboratories, an Allied Arts Department, a library, science laboratories and an auditorium.
The school is being funded by the Government of Guyana and has the capacity to accommodate 600 students.
Tiwarie at the time had assured that all works would be done in accordance with the required standard and best practices, the release said. The release added that when the school is completed, it is expected to serve students in the Yarrowkabra community and other neighbouring communities on the Linden Highway. The construction works were scheduled to be supervised by VIKAB Engineering Consultants Ltd.