Latest update April 24th, 2024 12:45 AM
Mar 01, 2012 News
…‘Sky high’ bids submitted to complete project
“Unbelievable” estimates by contractors have led to a delay in the award of contracts for five more sections of the road leading to Amaila Falls where the government intends to build a mega hydro project to satisfy the entire country’s electricity demands.
“When you ketch a paku you buss he back,” is the colloquial saying that Head of the Presidential Secretariat, Dr Roger Luncheon, chose to use to describe the latest round of bidding by contractors.
The government has had to seek out new contractors to build the road after it fired Makeshwar “Fip” Motilall.
Motilall’s Synergy Holdings was handed a US$15.4M by the previous Bharrat Jagdeo administration to build the entire road.
This followed unrelenting scrutiny by Kaieteur News and that of other stakeholders that questioned Motilall’s ability to execute the contract.
The government has so far awarded Toolsie Persaud Limited two separate contracts, each costing an estimated $370M for two sections of the road.
Contractors need to be identified for five more sections of the road, but for those who have put in bids, Dr Luncheon suggested that they somehow thought it was “open season,” and so they put in bids that add up to far more than the government “can swallow.”
He said that Minister of Transport, Robeson Benn, will be meeting with the bidders in the hope of reaching “financial rectitude.”
Dr Luncheon reiterated that the cost of building the road to the Amaila Falls will cost more than the original contract price of US$15.4M.
He said that less than half of that amount was expended before the contract of Synergy Holdings was terminated.
On January 12, the government cancelled the controversial contract that was won by Synergy Holdings under the Jagdeo presidency.
The new Donald Ramotar government terminated the contract with Fip Motilall’s Synergy Holdings and moved to seize all of his equipment.
The government further determined that the contractor must pay US$120,000 in liquidated damages.
The road would pave the way for the Amaila Falls Hydroelectric Project which is described as just part of a larger effort to revolutionise Guyana’s power generation infrastructure.
The storage dam site would be located near the top of Amaila Falls and would impound the waters of both the Kuribrong and Amaila Rivers.
The Amaila site is located on the Kuribrong River, a tributary of the Potaro River in West Central Guyana.
The nearest point of access is the airstrip at Kaieteur Falls on the Potaro River, approximately 15 miles to the South.
An overland trail exists from Kaieteur to Amaila.
Access is also provided overland by an all-weather road through Tumatumari on the Potaro River and on to Mahdia and Kangaruma.
River access along the Potaro-Kuribrong Rivers to the foot of Amaila Falls involves several portages around rapids and waterfalls.
The road from Tumatumari was recently extended to Mahdia/Kangaruma that brings the project closer to the site but approximately 30 miles of additional roads will need to be built to the top of Amaila Falls.
The Government of Guyana had granted the original road building contract in March 2010.
The then Bharrat Jagdeo government had vociferously defended the contract given to Motilall and his company, Synergy Holdings, and refused to terminate the contract despite mounting controversy over Motilall’s suitability and ability to complete the contract.
As of December 2011, Synergy Holdings Inc had completed only an accumulated 40 per cent of the works despite repeated urgings and interventions from the Project Engineer and the Consulting Firm to have the project completed.
Synergy Holdings was the original developer of the Amaila Falls Hydro Project.
However, the company realised that it could no longer execute the project and its licence was transferred to Sithe Global.
Less than six months after the licence transfer, Synergy Holdings, under Makeshwar “Fip” Motilall, secured the US$15.4M contract from Government to build roads and bridges leading to the project site.
The government announced the award of the contract to Motilall on March 26, 2010.
Synergy Holdings was given the first notice to proceed on October 5, 2010 for some sections of the road, while the green light for the other section through virgin rainforest was given on January 11, last year.
Those bidding for the contracts were asked to provide their experience in similar large scale projects together with references and credentials, and detail the equipment he owns and would require to carry out the project.
Synergy Holdings came under the radar over its experience in building roads and its ability to carry out the project. The company’s contract was for the upgrade of approximately 85 kilometers of existing roadway and the design and construction of approximately 110 kilometers of new road.
LISTEN HOW JAGDEO WILL MAKE ALL GUYANESE RICH!!!
Apr 24, 2024
Round 2 GFF Women’s League Division One Kaieteur Sports – The Guyana Police Force FC on Saturday last demolished Pakuri Jaguars FC with a 17 – 0 goal blitz at the Guyana Football...Kaieteur News – Just recently, the PPC determined that it does not have the authority to vitiate a contract which was... more
By Sir Ronald Sanders Waterfalls Magazine – On April 10, the Permanent Council of the Organization of American States... more
Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.
Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]