Gov’t signs $14b in contracts

One of the contracts being signed yesterday (Ministry of Finance Facebook page)
One of the contracts being signed yesterday (Ministry of Finance Facebook page)

Nearly 200 contracts worth a whopping $14b were signed yesterday by the government as its plan to provide 50,000 house lots for citizens over five years moves ahead.

The infrastructural works and construction of houses will take place in various areas across the country including Cummings Lodge, Prospect and Great Diamond, according to a release from the Ministry of Finance. 

According to the release, Minister within the Ministry of Housing and Water Susan Rodrigues said the housing areas being developed would allow for over 10,000 house lots. She also said that the process was historic as it was the first time that so many contracts were signed at any one time by a single Ministry. According to Rodrigues, this signalled the importance the Government was placing on the sector, the release added.

Since it entered office on August 2nd last year, the government has signed hundreds of contracts but the public is still in the dark as to who has won contracts as the information is not being published by the National Procurement and Tender Administration Board (NPTAB). When this was drawn to his attention, Minister in the Office of the President with responsibility for Finance, Dr Ashni Singh had said that a portal would be created to provide this information. It is unclear how far this has proceeded but the Ministry provided no information yesterday on the contractors who benefited from the nearly 200 contracts.

Meanwhile, Minister of Housing and Water Collin Croal, citing the integral role his Ministry would play in ensuring that Government’s housing promise was fulfilled, pointed out that the number of contractors carrying out works would also include 26 new ones in the system.

It was expected that works totalling $4 billion would be carried out by June 2021 while another $6 billion is expected to be completed in the last half of this year.

The expansion of the number of contractors will also raise questions about whether there is any vetting of the ability of these persons to undertake the contracted works. Over the years there have been repeated complaints that many contractors winning contracts in these sectors lack the qualifications and a track record.

There have been calls for the government to proceed with an Engineer’s Bill which would  require registration and vetting of persons bidding for contracts in these sectors.

Meanwhile, Minister with responsibility for Finance, Dr Singh is urging contractors on the projects to ensure that their work is of the highest quality and completed on time.

Dr Singh, who spoke at the signing ceremony held at the Arthur Chung Conference Centre, Liliendaal, exhorted the contractors to ensure that good quality work is done. He also reminded them that the quality of work put out will be used to determine whether each can graduate to being a higher level construction firm, moving from small scale projects to medium scale projects or from medium scale to large scale ones.

“I urge you to be diligent in implementing this work. We must not have to chase contractors down to complete work… It is also your responsibility to ensure that contracts are in line with specifications,’’ the Minister charged.

He urged the contractors to ensure that works begin immediately following the contract-signing and upon the receipt of their contract advance financing, alluding to President Irfaan Ali’s expectation that there would be “immediate mobilisation and actual work commencing on the ground.”

Dr Singh also said that the commencement of the works by contractors will also serve as a boost to the economy, allowing for the creation of jobs in the construction sector.  He also assured that government will continue with its efforts to facilitate access to financing for persons wishing to apply for loans from financial institutions, as was done through the recent approval of the increase in the mortgage ceiling.