Category: Press Releases

02 Jun
By: ict 0

Basic Needs Trust Fund receives CDB grant of $US267, 000.

The Government through Basic Needs Trust Fund (BNTF) on Wednesday awarded contracts to Courtney Benn Contracting Services Limited and N. Lachman Business Establishment and Civil Works for the rehabilitation of a bridge and the upgrade of roads in Samatta Point and Fyrish.

The contracts totalling more than $US267, 000. was provided by a grant from the Caribbean Development Bank (CDB).

Critical rehabilitation works on the main access bridge and roadways in the Samatta Point East Bank Demerara area will be done by Courtney Benn at a  cost of GUY$32,579,812.00.

These works include repairing the bridge, upgrading the road surface to asphaltic concrete, constructing clay shoulders and speed humps and desilting roadside drains.

Meanwhile, residents of Church and Sixth Streets, Fyrish Village, Corentyne will also benefit from a Double Bituminous Surface Treatment (DBST), finished with Sand Seal road network, north of the Corentyne Highway.

N Lachman Business Establishment & Civil Works was awarded the contract to the value of GUY$22,140,000.00 for this project.

Project Manager for BNTF Michael Singh signed both contracts; witnessing on behalf of the government was Finance Secretary of the Ministry of Finance, Dr. Hector Butts.

Butts in brief remarks, reminded the contractors of Government’s demand for high quality work and efficiency of service. He also assured the contractors that they are welcome to bid for similar as well as the larger infrastructure development projects that Government plans to implement.

The projects were identified by BNTF under its 7th cycle Community Access and Drainage Sector Portfolio and are expected to be completed by May 31 of this year.

The CDB provides financing for social and economic infrastructure such as schools, road and water projects, building more disaster-resistant structures, community skills training and support for small and medium-sized enterprises.

It has engaged the services of CEMCO Inc. to provide architectural and engineering services for the design and supervision of the projects. More than 2500 citizens from the two communities will benefit.

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02 Jun
By: ict 0

Ministry of Finance and the World Bank sign agreement to rehabilitate the Cunha Canal

The East Demerara Water Conservancy (EDWC) is to be strengthened through the rehabilitation of the Cunha Canal.

Minister of Finance, Hon. Winston Jordan, today signed a US$3M grant agreement with the World Bank to improve drainage in the agricultural areas of Kuru Kururu, Coverden, Pearl and Sarah Johana, better manage water levels and increase the capacity of channels draining the EDWC.

On signing the agreement, Minister Jordan lauded the World Bank for supporting Guyana’s “green economy” transition. He also noted that farmers, commercial and industrial stakeholders on the East Bank, East Coast and Georgetown will soon experience some measure of relief from the financial burden that is often left behind by unexpected floods caused by the vulnerable canal.

He reminded those attending the signing that the event significantly marks one of the tenets of the Green Economy as set out by His Excellency President David Granger and recorded in the inaugural Budget presentation of the APNU + AFC Coalition, that the Government of Guyana will do all it can to reduce environmental risks by putting in place systems to ensure that our waterways are conserved for our livelihoods.

The Cunha Canal does not function at the moment due to years of neglect and hydraulic restrictions that have resulted in dam breaches, overtopping and an overburdened Sarah Johana channel.

Signing on behalf of the World Bank was Sophie Sirtaine, World Bank Country Director for the Caribbean who said, “The rehabilitation of the Cunha Canal will be essential to improve the flood risk management capacity along the flood prone East Demerara Coast. This will also be a critical step in reducing the vulnerability of local farming communities to climate risks.”

Among the works to be carried out under the three year project are the rehabilitation of the drainage channel, upgrade of existing sluices and the construction of a new sluice at the outlet of the Cunha Canal.

Contracts to commence works are expected to be signed before the end of this year. Some twenty three thousand, six hundred (23,600) citizens along the East Bank corridor are expected to see a substantial reduction in flooding by the second rainy season.

This Grant to the Government of Guyana is provided by the Norwegian Government under Guyana’s REDD+ Investment Fund (GRIF) in partnership with the World Bank.

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02 Jun
By: ict 0

Confidence in Public Process grows: Record number of Tenders received

Confidence in Public Process grows: Record number of Tenders received A record number of tenders was received by the National Procurement and Tender  Administration Board yesterday as public confidence in the procurement process  831 tender documents were submitted in response to fourteen (14) invitations for prequalification projects and three (3) for public tender projects. The entities for which the bids were submitted are the Ministries of Education and Public Infrastructure and the Guyana Defence Force for the supply of goods, services and construction. Several new contractors also submitted bids for the first time; NPTAB views this remarkable increase in bids as evidence of growing confidence in the Public procurement process.

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02 Jun
By: ict 0

Government announces $50,000.00 tax free payment for Public Sector Workers

The Ministry of Finance has announced that a one off tax free payment of $50,000 will be made to all active public sector workers earning less than $500,000 monthly.This payment will be effected in December. Some 30,700 public sector workers including nurses, teachers, members of the Disciplined Services and semi-autonomous agencies will benefit.

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02 Jun
By: ict 0

Statement from the Ministry of Finance

The Ministry of Finance (MOF) notes with growing concern speculations in the media about the MOU signed between Fedders Lloyd and itself for the review of works for the Specialty Hospital Project.

MOF wishes to make clear that its actions are consistent with the Procurement Act Chapter 42:05:

“If the supplier or contractor whose tender has been accepted fails to sign a written contract, if required to do so, or fails to provide any required security for the performance of the contract, the appropriate board shall refer the matter to the Evaluation Committee to determine which of the remaining tenders is the second lowest evaluated tender based on the evaluation criteria outlined in the bid documents subject to its right, in accordance with section 40(1), to reject all remaining tenders.”

In the Public bidding done for the Specialty Hospital under the PPP/C government, four tenders were received. Two were deemed to be rejected, leaving the remaining two – Surrendra Engineering and Fedders Lloyd Ltd. – in contention.

In spite of the protestations of Fedders Lloyd, the PPP/C government selected Surrendra Engineering, leaving Fedders Lloyd as the second and only other bidder for the project.

Surrendra’s services were eventually terminated by the previous government. Therefore, in accordance with Section 42(5) of the Procurement Act, the government can proceed to the second bidder.

The MOF also takes this opportunity to clarify a few points.

  1. The MOF did not award a contract to Fedders Lloyd; the Ministry merely entered into a MOU with the second and, indeed, the only other qualified bidder.
  2. The advantages of proceeding in this manner, rather than going out for a new tender are many, including the fact that Fedders Lloyd expressed in the MOU its intention to hold its prices expressed in its original bid made some four years ago. In addition to being time consuming, a new tender will result, obviously, in price escalation due to inflation.
  3. Fedders Lloyd intends to examine works already done by the previous contractor and to integrate those works within its proposed current design options, so as to lessen the burden of loss of funds already spent.
  4. Fedders Lloyd intends to complete the designs and finalize the list of equipment (which was not completed by the previous contractor) to the satisfaction of the Ministry of Public Health.
  5. Fedders Lloyd intends to hold the overall cost of the project within the available balance of the Line of Credit from Exim Bank of India.

It is the intention of the MOF that should the conditions in the MOU be satisfied by Fedders Lloyd, then the Tender Board will be invited to make an award of contract to Fedders Lloyd.

Procedurally, therefore, there is no impropriety in the method used by government in entering the MOU with Fedders Lloyd with the intention of leading to an award should the conditions stipulated in the MOU be met by Fedders Lloyd.

The decision to utilize the instrument of the MOU safeguards the procurement process and seeks to optimize the use of Public Funds, in this case a loan, in the most beneficial way.

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02 Jun
By: ict 0

Joint Press Statement by Ministry of Finance and Fedders Lloyd

MOU signed between Government of Guyana and Fedders Lloyd to build and equip Specialty Hospital.

Minister of Finance, Honourable Winston Jordan today signed a Memorandum of Understanding (MOU) with Fedders Lloyd that will see works restarting on the construction of the Specialty Hospital.

Fedders Lloyd in entering this MOU with the Government of Guyana (GOG) will review the works already started; conclude a design of the Hospital that is acceptable to the GOG; and commit to fully equip the facility on completion of its construction. Fedders Lloyd also undertakes to commence work on the facility immediately following the signing of the MOU.

Work on the Specialty Hospital was halted after allegations of impropriety and fraud were leveled against the contractor who won the bid for its construction in 2012.

The then government terminated the contract and proceeded to Court to seek remedies. The Court ruled in favour of Government and the construction of the facility came to a standstill. The future of the Line of Credit (LOC) was threatened.

Following the APNU+AFC government’s accession to office, it reviewed the project and concluded that since there was no existing contract that could be enforced, it was impractical to continue to keep the LOC in its existing form, especially since it was attracting commitment fees.

Government therefore requested EXIM Bank of India to cancel the LOC for the Specialty Hospital and to reallocate the balance of funds to a project to modernize three Primary Healthcare Facilities.

However, the Government of India (GOI) in its response, while indicating its no objection and support for the modernization of Primary Healthcare Facilities suggested that GOG should consider salvaging the Specialty Hospital, as it will complement primary healthcare facilities in Guyana.

GOG having examined the merits of the proposal began searching for a willing partner to complete the Specialty Hospital using the remainder of the LOC.

In the interest of time, Government approached Fedders Lloyd – one of the original bidders –to explore the possibility of them completing the project. Fedders Lloyd expressed continued interest and was prepared to complete and fully equip the facility.

At a simple signing today, Minister Jordan said, “The signing of the MOU represents a tangible expression of Fedders Lloyd interest and commitment to move the project forward.”

He added that, “The MOU is also testament to Government’s commitment to advancing health care delivery in Guyana.”

He also restated the Government of India’s approval of an additional LOC for the upgrade and modernizing of Suddie and Bartica hospitals and the West Demerara Regional Hospital.

Signing on behalf of Fedders Lloyd was Mr. Ajay Jha.

He thanked the GOG for the opportunity to work on the project, but more especially, to work for Guyana.

He further remarked that, “The Specialty hospital will be a model not only for Guyana but the rest of the Caribbean.”

The Specialty Hospital is intended to cater for high risk surgeries and other health care demands.

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