Laptops cost US$295, not $295,000 –Webster says she made an error

The laptops being procured under the One Laptop per Family Project (OLPF) are being purchased at a unit cost of US$295 per laptop, Minister within the Finance Ministry Jennifer Webster told the National Assembly this afternoon.

“Mr Speaker, it would be recalled that a question was asked about the unit cost of the laptops. I now wish to clarify that that budget assumes a unit cost of US$295 per laptop, and not $295,000 as previously stated in error,” Webster said, reading from a prepared statement.

Jennifer Webster

Webster had told the National Assembly yesterday that each laptop was being purchased at “a quite competitive” price of $295,000 (around US$1,430), creating an uproar in the House. The House was at the time considering the 2011 estimates of expenditure having resolved into a Committee of Supply.

“Indeed, it would further be recalled that I elaborated clearly in this House yesterday that the budget provides a total of $1.8 billion for the procurement of laptops and that 27,000 laptops will be procured this year. Simple arithmetic would confirm that this implies an average cost of just over $60,000 per laptop,” Webster added.

She said too that contrary to some media reports, “the laptops are being procured in accordance with applicable procedures and rules.

“I wish to further clarify that the sum of $2.5 billion of specific financing sourced from China is meant to finance the component of the ICT project which pertains to the construction of wireless and terrestrial networking systems from Moleson Creek to Anna Regina,” the minister said.

FILE PHOTO: President Bharrat Jagdeo presenting a laptop to students at the launch of the government’s One Laptop Per Family (OLPF) initiative on January 21st, 2011.

(The original story in today’s issue is below)

Laptop project costs under scrutiny

The cost of a laptop for the One Laptop Per Family (OLPF) project is “quite competitive” at a cost of $295 000 per instrument, according to Minister within the Ministry of Finance Jennifer Webster.

“…The cost of the laptop and the cost of installation, which is incorporated, is approximately $295 000,” Webster said to cries of “what!” from opposition members. Following the wrapping up of the 2011 Budget debate on Monday, the National Assembly yesterday resolved itself into the Committee of Supply to consider the 2011 Estimates of Expenditure and the OLPF came under scrutiny from opposition members.

$4.3B has been budgeted for Information Communication Technology this year and responding to a question from the PNCR’s Deborah Backer, Webster said that out of this sum, $1.8B will meet the cost of the 27 000 Lenovo laptops to be procured this year. She noted that this is a phased project that runs for four years.

Responding to another question from the AFC’s Sheila Holder, Webster said that the laptops are being procured through a competitive tender process and some of the funding for the project is being provided by China.

But Backer said that Webster had given two apparently conflicting answers and she pointed out that the Minister had cited a cost but then later said that there was a competitive process.

“How could you, Madam Minister, speak about a competitive bidding process when you already have given us the brand and the cost?

Is it that it is completed or is it ongoing…is the process completed or is it continuing?” Backer asked. “The budget is an estimated cost, the process is ongoing because it’s over a period of three to four years,” Webster responded.

“What other bid is the Minister in possession of?” Backer further asked. Webster said that she was not in possession of any bid and the cost she provided was the estimated cost given by the Project Management Unit.

Under the OLPF programme, the government is seeking to hand over 90,000 laptops to families.

The estimates for the Office of the President, the Office of the Prime Minister, the Guyana Elections Commission (GECOM), Parliament Office and the Ministry of Public Works and Communications were among those under focus yesterday.

The opposition members turned their attention to contract workers and with Webster referring some of their questions to Minister of Public Service, Dr. Jennifer Westford, the minister in turn said that “something is wrong” with the opposition asking the same questions year after year.

While she could not give a specific number, she said that a large percentage of staff had opted to become contract workers.

It was revealed that six more vehicles are to be purchased for the Office of the President at a cost of $49.3M and this will bring to 77 the fleet of vehicles at the office. A “historical cost” of $95M has been allocated for projects to be identified by the President.

The increased sums this year for GECOM were also queried by the opposition members but it was explained that they cover the increased activities for elections this year.

Opposition members also rejected a statement by Minister of Transport and Hydraulics Robeson Benn that there is a bipartisan effort to fill the position of Ombudsman.

Responding to questions on an estimate for ‘other infrastructure’ within the Ministry of Public Works and Communications, Benn noted that the $40M has been allocated for the maintenance of airdromes in the interior. This covers 41 airstrips.

In response to a question from Holder, he said that street lighting will be provided on the Essequibo Coast from Suddie to Charity with $150M budgeted for this. Benn also disclosed in response to a question from the PNCR’s Desmond Fernandes that $22M will be spent on the Kumaka Stelling. He said that the one that collapsed into the water was one that was not in use for over 30 years and the Kumaka Marketing Stelling was the one that was always in use.

Meantime, responding to a question from PNCR’s Mervyn Williams, Benn said that $80M has been budgeted for the modification and additional works on the Parika Stelling to accommodate the roll on/roll off ferry while $55M has been allocated for the Supenaam stelling.

He said that he anticipated that by December, the ferries would be here and he anticipated that by that time the modifications would have been completed. “We will provide that answer in due course,” he responded to Williams’ query on the total cost of the Stelling from conception to total completion.