More local content agreed for India-funded East Bank to East Coast road

The construction of the India-funded Eccles to Ogle road is one step closer as four firms have been short-listed to bid and the development comes even as this country made inroads in negotiating for increased local content participation.

Minister of Public Works Juan Edghill yesterday told Stabroek News that the pre-qualified companies are Ascons Infrastructure Limited, JMC Projects (India Limited), Ashoka Buildcon Limited and Dineshchandra R. Agrawal Infracon Pvt. Limited.

He explained that Georgetown was also able to secure modifications in the contract with New Delhi that would now see enhanced local content participation and he credited Indian High Commissioner to Guyana, Dr. K.J Srinivasa for helping to lobby for this country.

“When the draft tender document was sent and we were discussing it, one of the clauses stated that if the contractor was going to sub contract any of the work the sub-contractor must also come from India. We were able to have that clause adjusted and changed. So whomever is the successful contractor can now sub contract Guyanese contractors, as against only being able to sub-contract Indian subcontractors. That was a significant shift,” the Minister explained.

“The Indian High Commissioner must be singled out and applauded for the role he played in making it happen. His understanding the Guyanese context allowed for those adjustments and we are thankful,” he added.

A former junior Minister of Finance, Edghill explained that contracts which are foreign-funded require the contractor to come from those jurisdictions. As in the case with the East Bank to Eccles road, the four companies pre- qualified to lead the construction are all from India.

Pointing to past foreignfunded projects from India and China, in the National Stadium at Providence and the Marriott Hotel in Kingston respectively, Edghill explained the current changes.

“There is now a stipulation that up to 54% of the work can be subcontracted out to Guyanese entities. As is the case with the Sheriff Street/Mandela Road project, this can mean multiple subcontractors executing various aspects of the work simultaneously. This in turn means getting it done in a timely manner. And in this instance, where there is the marked increase, it is showcasing what it means to have local content.

“We should applaud the India-Guyana partnership, that even in the absence of legislation, just by way of negotiations, we can achieve this. It is a good classic case of how negotiations helped,” he added.

But the Public Works Minister was quick to point out that while the Indian firm can sub contract local companies, the onus is on it to ensure the works meet the standards and timelines set out as per the contract they signed since they would ultimately be held responsible.

“I want to make clear, however, that when a contract is given, it is the contractor that is held accountable not the sub-contractor. It is at all times the contractor,” he stressed.

Just after taking office in August last year, the PPP/C-led government amended the design of the proposed Ogle to Diamond bypass road to bring the project costs in line with the funds made available by the Indian Government.

During a visit to India in January 2015, then President Donald Ramotar had received a US$50 million loan commitment from the Indian Exim bank to fund the road project. He had always questioned why the APNU+AFC government never tapped into the available funding, as commuters face problems every day on the congested East Bank of Demerara

Juan Edghill

Public Road.

The procurement process will see invitations extended to international bidders and will be monitored by the Indian Government.

Under the project, the first phase of the road is to be constructed from Ogle, East Coast Demerara, to Haags Bosch on the East Bank of Demerara and will later have a connection to Diamond, East Bank Demerara.

A new connection point in the second phase had to be established since that was a factor driving up the cost of the project. The area in Mocha, where a

Dr. K.J Srinivasa

section of the road would have passed through is swampy and millions would have been spent to develop the area to facilitate the connection.

Indian company RITES Limited was awarded a US$1.3 million contract to undertake a feasibility study.

In July last year, the Ministry on its Facebook page had released a short video of the design for the proposed road link. The design featured a four-lane highway and two roundabouts to assist with the flow of traffic. With the change in work plans, the design has been modified.