Trinidadian company, Kalco Guyana Incorporated, which had failed to complete its section of the Conversation Tree Road Expansion Project, was not required to pay any liquidated damages nor did it face any other penalties.
This was revealed by Minister of Public Works Juan Edghill in response to questions posed by Opposition Member of Parliament David Patterson regarding the project.
“It must be noted that no liquidated damages were deducted, and no other penalties were administered for the prolonged delays, since there was an amicable settlement between the Ministry and the contractor,” the Minister outlined.
However, he noted that, “the Ministry would have taken possession of the contractor’s vehicles and equipment to the value of $153,600,000 to cover the recovery of outstanding monies owed on the Advance Payment.”
The Minister clarified that the contract was “amicably settled” and not terminated.
Initially pegged at $1.8 billion, the Conversation Tree-to-Dennis project was split into two lots, with the first lot awarded to S Jagmohan Construction and General Supplies Inc., which completed the works in a timely fashion.
The second phase was awarded to Kalco to the tune of $830,293,458 and the contract period was September 5, 2022 to November 5, 2023. But the company failed to make any significant progress with the project.
According to the Public Works Minister, the Trinidadian company was already paid a total of $465,223,474, inclusive of advance works done on the project.
After pulling the contract from Kalco in April 2024, the government gave S Jagmohan Construction and General Supplies Inc. the job to complete to road works.
Responding to questions from MP Patterson on what method of procurement was used to give S Jagmohan Construction and General Supplies Inc. the contract, Minister Edghill said, “the Sole Source Method was used to procure the services of S. Jagmohan Construction and General Supplies Inc. owing to the fact the contractor had recently substantially completed the eastern section in a fairly timely manner.”
He added that, “the contractor was acquainted with the site conditions and works are of similar nature, in addition to not fully demobilized from the site.”
Minister Edghill further revealed that S. Jagmohan Construction and General Supplies Inc. is being paid $844,027,988 to complete the works, within a period of six months, from April 30, 2024 to October 29, 2024.
S Jagmohan Construction and General Supplies Inc had already completed the first lot of the project to the tune of $$1,066, 358,738.
