Delayed projects costing billions in foreign funding – AG report

The delay in the execution of Government projects is costing Guyana billions in foreign funding. This is according to Auditor General Deodat Sharma, who in his 2018 audit report stated that there was a shortfall of capital expenditure that totalled $4.683 billion. According to him, this was attributed mainly to delays and slow progress in the execution of various foreign-funded projects.

“These activities included construction of an ocean-going ferry – $1.133 billion; slow progress on Sheriff Street and delays in startup of reprogrammed housing component – $1.008 billion; delays in agriculture census – $464.382 million; construction of two secondary schools – $369.778 million; and site identification for hospitality institute upgrading of PIC/PIDs – $300 million.”
In its response, the Government admitted that there were delays. According to the Government, the negative variance was due to challenges faced in executing these projects ranging from delays in fulfilling conditions before the funds were disbursed to poor contractors’ performance.
“Also, the time between initiation of procurement for bilateral funded projects where procurement is done in donor country has proven very challenging in the period under review, for example, the procurement of the ocean-going ferry from India,” the report stated.
Another example of delays was in National Parks Commission and Guyana Protected Areas administered projects. According to the AG, there was a shortfall of $129.8 million, including $50 million for building a fence and pavilion, among other things.
According to the Appropriation Accounts, amounts totalling $20.130 million was expended as at December 31, 2018, resulting in a shortfall of $29.870 million, however, the reason/s for the shortfall was not provided for audit.
“The sum of $100 million was allocated for the improvement of infrastructure and supply of equipment to enhance the management and conservation of biodiversity in three protected areas: Kanuku Mountains, Shell Beach and Kaieteur National Park. According to the Appropriation Accounts, no expenditure was incurred during 2018, resulting in a shortfall of $100 million. However, the reason/s for the no expenditure was not provided for audit.”
According to the AG, these projects were nevertheless re-budgeted in 2019. In explaining the reasons for the shortfalls, the Government said that there were delays in project start-up and approval, as well as executing the project itself.
“The sum of $100 million was allocated in the Budget, however, this sum was not disbursed by the German counterpart. As a result, the funds were not available to the Protected Areas System for execution of the work plan. Direct payments from the German counterpart were made in 2018 for consultancy services,” the Government said in its response.