Ministry, Falcon in funds standoff over ECD road project

Falcon Transportation and Construction Company (FTCC) is making moves to uplift money it claims is owed to it for work undertaken on the East Coast Demerara (ECD) four-lane road project, but the Works Ministry is maintaining a hold on the release of funds.

The project is shrouded in controversy and according to a source, the contractor approached the Finance Ministry recently to uplift funds which the firm claims it is owed for works done so far on the roadway.  The company is still carrying out works to the roadway even though its contract may be in jeopardy.

Road construction underway at Atlantic Gardens, East Coast Demerara

This newspaper had reported that the firm has only completed 35% of the work on Lot One of the expansion of the roadway between Better Hope and Montrose and is way behind its nine-month deadline which is up next month.

Meanwhile, Dipcon Engineering is carrying out work at a cost of $671 million on Lot Two of the project between Montrose and Triumph.

Stabroek News understands that a high-level team from the Finance Ministry visited the project site last week to inspect the work done by Falcon. This was initiated after the firm lodged complaints with the ministry over money it claimed it is owed by the government.

Efforts by this newspaper to obtain a comment from Minister of Transport and Hydraulics Robeson Benn on this subject have been futile. Falcon Transportation and Construction has remained mum as regards its $468 million contract.

Stabroek News understands that Falcon had informed the Public Works Ministry earlier this year that it would not uplift money until after the work was completed. A source said, however,  that the firm had been lodging valuation forms in order to uplift payments.

However, the Works Ministry had recognized that the firm was lagging behind in its contractual obligations. A team from the Works Ministry visited the site in December and discovered what appeared to be substandard work.

“The Works Ministry recognized at this point that the company had already collected more than half of the project cost so a hold was put on  the payments after it was realized that the company hadn’t even finished 50% of the work,” the source added.

The two construction companies started work on Phase One of the project, which began in October last year. Government had previously stated that the work entailed the clearing of the right of way; the laying of a white sand base; the construction of reinforced concrete drains on either side of the road; and the construction of temporary timber bridges at key locations to facilitate access during the construction period between Better Hope and Triumph.

Government had secured US$900,000 from the Kuwaiti government to prepare the design for the road expansion.