Stalled ECD 4-lane highway…
– Chinese firm expected to restart project in June
By Jarryl Bryan
Courtney Benn Contracting Services and Compustruct Engineering Incorporated, who were red-flagged by the Auditor General’s 2014 Report for receiving millions of dollars in overpayments in regard to the East Coast Demerara Highway Improvement project, have begun to make restitution.
The first repayment cheque, valued at $10 million, was actually submitted to the Ministry of Public Infrastructure four months ago, according to Permanent Secretary of the Ministry of Public Infrastructure, Geoffrey Vaughn, who said that at least two cheques have been forthcoming from Courtney Benn Contracting Services and Compustruct Engineering Incorporated; and more payments should be forthcoming, though not on a fixed instalment basis.
“They have started paying back,” Vaughn said. “We have the deductions. We had the first cheque (four months ago) and it’s continuous.”
The East Coast Demerara road project, started in 2011, spanned from Better Hope to Belfield, with the civil works split into seven lots. Originally intended to bring a number of benefits to motorists using the road, including reducing congestion, this project has been at a standstill for years, with lots one to five at varying stages of completion. More than $2.7billion have been expended on this project.
Courtney Benn Contracting Service had been assigned to do work on Lot Three − from La Bonne Intention (LBI) to Beterverwagting, with the contract sum being $349M. Compustruct, on the other hand, was assigned Lot Four, ranging from Beterverwagting to Triumph. The cost for works on this lot was $322.3million.
According to the 2014 Auditor General’s Report, both contracting firms were granted time extension up to June 17, 2015. On September 18, 2015, the auditor observed that Lot Three was 80 per cent complete, while Lot Four was halfway complete.
The Auditor General had noted that advance payments of $120.6 million for Lot Three and $132.7M for Lot Four had not been recovered. The AG had also stated that Compustruct submitted only one advance bond, while receiving three advance payments. Compustruct’s performance bond expired on December 31, 2014. In the case of Courtney Benn Contracting, the company’s bonds also expired in 2014.
In February 2017, however, Courtney Benn had denied reports that his contract was terminated because he had not fulfilled his contractual obligations. In fact, Benn reportedly stated that his work was completed, as the roadway was widened, drains dug and sheet pilings erected.
Fresh start
After the initial work on the various lots had been done, the coalition Government proceeded to sign a framework agreement last year with outgoing Ambassador from the People’s Republic of China, Zhang Limin. The agreement was for a concessional loan from the Export-Import (EXIM) Bank of China to the tune of US$45.5 million.
Chinese engineering firm China Railway First Group will take over completion of these works, and is expected to complete the upgrade project. Vaughn said there are a few technical aspects still being worked out before the firm starts mobilisation.
“Mobilisation for China Railways is expected within the next month or two,” Vaughn said. “So as soon as we are able to get that bond, we will be able to wrap things up. We are working along with them in some price differences that we’re seeing, and as soon as those are wrapped up, we will have the project moving.”
He said the Ministry could not provide details of those price differences, but that information would be provided once negotiations conclude.
The Auditor General red-flagged notable examples of incomplete work. In this picture showing Lot Four of the East Coast Demerara four-lane project, works were completed on the southern side of the road only
