AG urges action as $2B GDF wharf project behind schedule

The Office of the Auditor General (AG) is urging that action be taken as the $2 billion project to construct a reinforced concrete wharf at the Guyana Defence Force (GDF) Coast Guard Headquarters has fallen behind schedule.
An award was made for the construction of a reinforced concrete wharf at the Coast Guard Headquarters in Ruimveldt, Georgetown by the National Procurement and Tender Administration Board (NPTAB) and the $2 billion contract was signed on December 28, 2023.
According to the 2023 AG Report which was recently laid over in the National Assembly, the contract is four months behind schedule.
The report noted that the commencement date for the project was given as February 26, 2024, and the completion date, as February 26, 2027. Therea is a defect liability period of 12 months.
However, as of July 12, 2024, the AG’s Office said no work had started. In fact, it stated that the contractor was not even mobilised to the site.
According to the Audit Office however, an advance payment totalling some $191.6 million was already paid to the contractor. This represents 9.3 per cent of the total contract sum.
In light of these developments, the Audit Office has recommended that the Guyana Defence Force (GDF) urge the contractor to pursue the works. It also urged the GDF to closely monitor the work progress and provide a copy of the performance bond for audit examination.
Meanwhile, the award of the contract to Kares Engineering had been embroiled in some controversy, with another contractor that had bid for the project filing a complaint with the Procurement Commission.
Nevertheless, NPTAB issued a statement explaining that the award of the contract was properly done. NPTAB had noted that bids were evaluated by an independent evaluation committee and that the evaluators had recommended the lowest responsive bidder.
It was reported that eight contractors submitted bids for the project including R. Basso & Sons Construction Company, S. Jagmohan Construction & General Supply Inc, Correia & Correia Limited, Arjune Construction Inc, Memorex Enterprise, Kares Engineering Inc, Ivor Allen and Gordon Winter Co Limited. The lowest bid was from Kares with $1,839,524,630.
The upgraded facility would have been used to accommodate several new vessels that were in the pipeline for the GDF including the 115 Defiant Offshore Patrol Vessel (OPV).