Road construction frenzy is frightening

Mar 18, 2024 Peeping Tom

Kaieteur News – The government has embarked on an ambitious infrastructure development spree. It has initiated major road projects across the nation. While the intention behind these endeavours is undoubtedly to enhance connectivity and improve overall infrastructure, the current pace of development has raised concerns regarding its sustainability and the potential for economic overheating.

The frenzy of road construction, including projects like the Schoonord to Crane bypass, the Diamond to Buzz Bee Dam link, and the Diamond to East Coast bypass, signifies a significant commitment by the government towards modernizing the country’s road transport infrastructure. However, the rapid execution of multiple large-scale projects simultaneously has stretched the construction sector beyond its capacity.

One of the most glaring consequences of this overextension is the strain it places on vital resources, such as sand, cement, and stone – essential materials for road construction. The skyrocketing prices of these materials have had a ripple effect across various sectors of the economy, exacerbating costs in industries like home and commercial construction. This inflationary pressure not only increases the financial burden on businesses and homeowners but also undermines the competitiveness of Guyana’s economy.

The resulting heightened competition for resources has led to delays in project timelines. Contractors are struggling to procure materials and skilled labour in a timely manner. When materials are obtained, the labour force is not there and when the labour force is in place, materials take days and weeks to be delivered on site.

Despite facing these challenges, the government has been resistant to calls for a slowdown in the pace of road construction.  Instead, it continues to push forward with the awarding of new contracts, ignoring the underlying constraints faced by contractors. The result is that existing construction works are further delays by the added competition for material and human resources.

The government has failed to recognize the limitations of the construction sector and acknowledge the adverse consequences of its current approach. By ignoring the supply and labour constraints, the government risks exacerbating delays, compromising project quality, and ultimately failing to deliver on its infrastructure promises.

Multilateral organizations such as the International Monetary Fund (IMF) and the Inter-American Development Bank (IDB) have warned the government about the possibility of the overheating of the economy.  But the government appears to be confident in the ability of the construction sector to execute the several projects that constitute the Public Sector Investment Programme. It appears oblivious to the real concern as to the effect of the construction bonanza on prices and the availability of materials.

But there is a way out. A key consideration should be the prioritization of projects. While each road development initiative holds significance, it is essential to allocate resources efficiently and focus on completing critical projects before embarking on new ones. Prioritization should be based on factors such as strategic importance, economic impact, and feasibility. This targeted approach ensures that limited resources are utilized effectively to maximize the benefits for the nation.

The government should consider, for example giving priority to completing the Schoonord to Crane bypass since this will alleviate major traffic woes on the West Side. Similarly, the Diamond to Buzz Bee Dam road will help ease the traffic problems along the Grove, East Bank Public Road, and the Ogle to Diamond bypass will allow for East bank traffic to be able transit to East Coast without having to travel through the city. These should be three priority projects while the other road projects including the widening of the East Coast Public Road and the Railway Embankment can be deferred to later.

The government must consider the broader implications of its infrastructure program on the economy as a whole. Overheating, characterized by excessive growth leading to inflationary pressures and economic imbalances, poses a significant risk that cannot be ignored. By overheating the economy through unsustainable infrastructure development, the government jeopardizes long-term stability and growth prospects.

A more prudent strategy would involve phasing the infrastructure programme to align with the capacity of the construction sector. This phased approach allows for better resource management, smoother project execution, and mitigates the risk of overheating. Additionally, it provides breathing room for contractors to fulfill their obligations without being overwhelmed by concurrent projects.

While infrastructure development is crucial for Guyana’s socio-economic advancement, it must be pursued judiciously to avoid the pitfalls of overheating and resource depletion. The government must demonstrate prudence and foresight in managing its infrastructure programme, prioritizing critical projects, and pacing development in line with the capacity of the construction sector.

(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)                       

• Development Bank, economy, Guyana’s, Schoonord, the Diamond to Buzz Bee Dam link