Public Works Ministry owes DHB $200M

…using credited asphalt for projects but not repaying

The first week of the People’s Progressive Party (PPP) Government has brought a number of revelations to light. Included in those revelations is the fact that the Ministry of Public Works owes the Demerara Harbour Bridge (DHB) some $200 million in payments.

This revelation was made by Public Works Minister Juan Edghill, in a recent interview with this publication. He explained that as they brought themselves up to date with the Ministry’s current works, the debt was discovered.
“Just this morning I discovered that the Ministry owes the Demerara Harbour bridge $200 million. The Ministry of Public Works owes the Demerara Harbour Bridge, which is the asphalt plant, $200 million,” Edghill said.
Edghill made it clear that this is not inclusive of the monies that the previous A Partnership for National Unity/Alliance For Change (APNU/AFC) Government “borrowed” for the Public Infrastructure Ministry to pay a dutch company to do a feasibility study into the new Demerara Harbour Bridge crossing. Rather, this sum represents asphalt that the Ministry used but never paid for.
“This is taking asphalt to do works, at least that is the explanation we received. And that is a matter we have to look at. But we have made it very clear that in our tenure we are here to provide service. And we would expect that all our team members and agencies who derive a subvention from us, deliver to the people of Guyana,” he said.

This publication made contact with Works Services Group (WSG) Head, Geoffrey Vaughn, in an effort to ascertain what the asphalt was used for. He noted that the asphalt is generally used for the Ministry’s projects, but acknowledged that payments were not up to date.
“It is used for every project that is ongoing, we take asphalt form our own Ministry plant. Every project, there’s no specific project. Every project, most of the asphalt is from the asphalt plant,” he said.

“The Ministry would normally take the asphalt and remit the payment to the asphalt plant… Sometimes when the bill does come in, it comes in late. So, we have to now make preparations for payments.”
It was in July of last year that a $488 million German-made asphalt plant arrived in Guyana. The new asphalt plant was touted as having the power and capability to produce approximately 160 tonnes of asphalt per hour – almost four times faster than the asphalt plant that was in use at the time.
The new asphalt plant, which is supposed to be able to process plastic bags and bottles, was procured through public tender during 2018 by the Demerara Harbour Bridge Corporation, signalling an increase in operations and growth in demand. However, it is yet to be commissioned.
When it comes to the old asphalt plant, it was revealed last year that the APNU/AFC Government took money from the DHB asphalt fund to pay Dutch company LievenseCSO for a feasibility study on the new DHB crossing.
In fact, it was the then PPP Chief Whip and now Parliamentary Affairs Minister, Gail Teixeira, who wrote to the Public Procurement Commission (PPC) in June of 2019 to draw its attention to the misuse of the asphalt fund accounts.
Reports indicate that in 2017, $215.3 million was used from the fund, while in 2018 a further $74 million was withdrawn. The original sum approved by Cabinet for the contract was $161.5 million. It is understood that the contract price for LievenseCSO, which was handpicked by the former Government to carry out the consultancy, was actually $148 million.
PPC Chairperson Carol Corbin had subsequently referred the matter, together with the Commission’s report on LievenseCSO’s sole sourcing, to Auditor General Deodat Sharma in order for him to take the relevant action. (G3)