Govt terminates $270.5M Back Street Diamond contract over delays

The Government of Guyana has terminated the contract for the rehabilitation and construction of Back Street in the Diamond Housing Scheme, East Bank Demerara (EBD), after the project fell significantly behind schedule, reaching only 55 per cent completion despite a July 2025 deadline. Public Works Minister Juan Edghill, during an on-site inspection, confirmed that the Ministry has taken over the project through its Special Projects Unit, citing poor contractor performance and serious inconvenience caused to residents.

The project, listed as Lot 21 Rehabilitation/Construction of Back Street, Diamond Housing Scheme, was awarded to CB General Contracting Services Inc at a contract sum of $270.5 million. Works commenced on November 18, 2024, with a completion date set for July 17, 2025, over a seven-month period. To date, $138.6 million has been expended, following an advance payment of $81.1 million. According to official project details, the scope of works includes the construction of a two-lane asphaltic concrete road, concrete drains, covered walkways and designated parking lanes along a 560-metre stretch with a width of 12 metres. While approximately 80 per cent of the concrete drains have been completed, the installation of drain covers and walkways remains partial, and utility relocation involving Guyana Power and Light (GPL) and Guyana Water Incorporated (GWI) is still ongoing.

Unacceptable
Edghill said the Ministry acted after receiving repeated complaints from residents through its public hotline. He described the contractor’s performance as unacceptable, noting that residents’ access to their homes had been severely disrupted. “Since we would have made our hotline public, we’ve had great participation from the public, bringing to the Ministry’s public notice some of the inconveniences and challenges people are having in various communities while they are executing capital works, while we are executing capital works in certain areas. We have received notices from several different sources in Backstreet Diamond. A few weeks ago, we’ve had to terminate this contract because the contractor has basically been, for the want of a better word, a nuisance to the neighbourhood. And as you can see here, in the executing of his work, he has interrupted the access of every single person who lives in the area. The project time has passed, and this is the state. I should say it was in a worse state because we’ve had to send in the Special Projects Unit,” the Minister said. Edghill revealed that conditions were even worse before the Ministry intervened. With this in mind, he emphasised that the Government will not tolerate substandard execution of public infrastructure projects. “They’ve been here like a week now to start restoring and getting this project finished. We will not, as a Ministry, tolerate poor performance. We will not allow these things to go unaddressed once they are brought to our attention. So, for the people of Backstreet Diamond and the users of Backstreet Diamond, by Christmas we’re going to bring this surface up to a pressure-run surface that you will be able to drive. People will be able to get some access to their properties because right now, owners have to park all the way out and walk in and out or park all the way to the grass and walk in and out. We have been able to analyse what needs to be done, and we’re going to bring relief,” Edghill assured. The Ministry has indicated that works will continue aggressively to restore access, stabilise the roadway and bring the project to a satisfactory standard in the shortest possible time.

Princes Street contract termination
Only on Monday, the Public Works Ministry announced that it has taken over the $631 million Princes Street Road, Georgetown expansion project after terminating the contractor, Yhardram & Sons Construction Establishment, for poor performance. Edghill said the project was only about 30 per cent complete despite works commencing in November 2024, prompting the Ministry’s Special Projects Unit, led by Senior Engineer Colin Gittins, to assume responsibility. The project, which runs from Cemetery Road to St Stephen Street, is intended to widen Princes Street, improve drainage and better manage traffic flowing from the four-lane Cemetery Road corridor. Immediate clean-up and remedial works have begun to restore usability and ease traffic flow. The contractor had already received an advance payment of $189.3 million prior to termination.