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Nov 03, 2021 News
Kaieteur News – A Chinese company accused of fraud by the World Bank has secured the contract to build the new multi-million dollar Demerara River Bridge estimated to cost some US$257M.
Confirmation of the contract was released on Monday evening, when by way of a public statement, the Ministry of Finance announced that Cabinet at its last meeting granted no-objection for the Ministry of Public Works (MoPW), to engage China State Construction Engineering Corporation Ltd. to construct the New Demerara Harbour Bridge (NDHB).
The project will be approached based on a Design-Build-Finance (DBF) model with financial terms and conditions “which would be no less favourable than those submitted in the preferred bidder’s price proposals.”
Investigations by this publication had found that several of the companies that had expressed an interest in constructing the bridge had been involved in illegal practices in the past, including China’s State Construction Engineering Corporation Ltd. That company was sued for fraud in the Bahamas.
The company reportedly submitted ‘sham billings’ and diverted monies to other projects and was subsequently disbarred by the World Bank. According to the Ministry of Finance, the proposal by China State Construction Engineering Corporation Ltd, under the DBF model contemplates a construction cost of US$256.6 million, the lowest amongst all bidders.
It was noted that initially, the Government of Guyana, through the MoPW, pre-qualified nine firms to submit bids for the construction of a two-lane dual carriageway (4 lanes) hybrid Cable-Stayed center span bridge, with Concrete Box/T Beam Girder approach bridge structure.
It was noted that features to be included on the new bridge would be collision protection, navigation span to accommodate Handymax vessel Navigation aids, Lighting, signage, and all other ancillary works, access road with a minimum of 50 meters up to abutments and a toll collection buildings and ancillary buildings on the West Bank of the Demerara River (WBD).
According to the Ministry, the pre-qualified firms were invited to submit bids to construct the bridge using a Design Build Finance (DBF) contract and Design Build Finance Operate Maintain (DBFOM) contract.
It was noted that at the pre-bid meeting, held on June 28, 2021, it was agreed that the closing date for submission of bids would be October 5, 2021. Subsequently, only five of the pre-qualified bidders submitted bids, of which four obtained the required minimum score for the technical proposal. The Ministry said the Evaluation Committee recommended that the Procuring Entity engage China State Construction Engineering Corporation Ltd. using the Design-Build-Finance (DBF) model “on financing terms and conditions no less favourable than those proposed by the highest ranked bidder.”
According to the Ministry, NPTAB subsequently submitted the recommendation to Cabinet, and Cabinet granted its ‘no objection’.
The Ministry in its missive argues that the New Demerara River Bridge “comprises a critical component of the Government’s drive to expand and modernize Guyana’s transport infrastructure.”
It aims to replace the aging Demerara Harbour Bridge with a modern four-lane structure that will facilitate greater traffic capacity and dramatically improve commuter convenience.
The new bridge, according to the Ministry, will also “offer easy connectivity to both the existing East Bank Demerara road as well as the new Diamond to Ogle bypass on the eastern side of the River and to the existing West Bank Demerara Road and the new Parika to Schoonord Road on the western side of the River.”
The new bridge, it said, “will also offer critical connectivity to the new Wales Development Authority which will be a major centre of productive activity when it comes on stream.”
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