Deadline for New Demerara River Bridge bids extended by two months

While government has extended the deadline for submission of bids for the New Demerara River Bridge by two months, it is not relenting on having the project completed in two years and this position was emphasised to bidders at a pre-bid meeting on Monday.

“There was a request for an extension of the time for the submission of the bids… we have agreed that there would be a two-month extension, and so now that time had moved from August 3rd, 2021, to October 5th, 2021,” Minister of Public Works Juan Edghill told Stabroek News when contacted for an update.

“None of the bidders asked for an extension of the two years. The project is expected to be completed with 24 months of the signing of the contract,” he added while pointing out that at Monday’s pre-bid meeting, none of the bidders expressed concern about the non-negotiable stance for the contract time.

On Monday, the minister and team met with representatives of the nine companies that have pre-qualified to bid on the project at a pre-bid meeting.

Chinese companies dominate the shortlisted pre-qualified bidders and constitute seven of the nine companies. They are: China State Construction Eng Corp (China), China Geizhouba Group Co Ltd (China), JV-China Railway International Group Co Ltd, China Railway Major Bridge Eng Group Co Ltd, Reconnaissance & Design Inst Co Ltd (China),  JV-China Road & Bridge Corp, Peutes y Calzadas Infrastructuras SLU (China and Spain), and JV-OECI S.A. The other two companies are Odebrecht Engenharia E. Construcao S A OEC of Brazil and the Dutch Ballast Needam Infra Suriname BV.

Edghill had told this newspaper last week that the ministry would use the time to clarify matters raised in the over 250 questions it had received from the bidders.

He informed that on Monday all of the questions raised and discussed were of either of a technical or financial nature. He explained that most were answered and those that required additional information “would be supplied in two weeks.”

A technical team from the ministry has also been established to provide support and clarification to the bidders in the lead up to their submissions and as they continue to complete their bid documents.

The bidding document, seen by the Sunday Stabroek, specifies the criteria required for making a bid on the project that stipulates that bidders present proposals for a Design, Build and Finance (DBF) option, or alternatively, Design, Build, Finance, Operate and Maintain (DBFOM).

The Scope of Works included in the design/build contract includes the complete design and construction of a two-lane dual carriageway (4 lane), hybrid cable-stayed centre-span bridge with concrete box/T-beam girder approach bridge structures and must include bridge collision protection, a navigation span to accommodate Handymax vessel navigation aids, lighting, signage and all other ancillary works, an access road with a minimum of 50 meters up to abutments, toll-collection buildings and ancillary buildings on the West Bank of the Demerara River.

On the financial side, and tied to the 24-month deadline, is a clause where defaulters would have to pay US$25,000 ($5 million) for each day past the deadline.

And according to sources, bidders have also expressed concern that the DBFOM model puts most western companies at a disadvantage and favours the Chinese contenders since the former would not want to be saddled with operating and maintaining a bridge. “Capital cost increases if completion is projected to take beyond 2 years – imputed penalties; [US$25,000.00] per day,” the document states.

The Minister was asked if any of the bidders raised any objection to the penalties proposed and he replied, “None.”

Under Section 2.2, which deals with the geotechnical report, the invitation makes it clear that “The contractor shall provide a geotechnical report which will contain all geotechnical data gathered by the Contractor as a result of investigations for the Works and information of relevance to the maintenance of the Works. Of importance are the structure foundations: records, effectiveness and problems of soil, sea and ground water conditions encountered, including temporary works, pile logs, pile tests, and other relevant test details. Settlement records with dates of each major stage, settlement control stations, as-built foundation dimensions, etc.”

It would mean that the contractor bidding would have no idea of how deep foundations for the structure would be required and this can influence unnecessary approximations. This is so because the contractor might bid high enough to cater for very deep depths but in that instance government would end up overpaying if the depth is actually shallower; thus requiring lower costs.

Requirements for the Detailed Design state that the process undertaken by the contractor shall involve the preparation of detailed working drawings, project specifications, and the appropriate documentation for construction purposes.

“The Detailed Design of the NDRB Project shall include, but will not be limited to, the following: (a) Design Base Statement, (b) All working drawings, schedules and designs required for the Construction Works in accordance with the applicable standards and codes of procedure listed herein, (c) Project specifications and other provisions required for the Construction Works, (d) Design changes to the drawings, to comply with the Engineering Requirements or as agreed by the Employer, (e) A detailed geotechnical report, (f) A detailed topographical survey report, (g) Hydrology, hydraulic and drainage design report, (h) A detailed material report, (i) Safety Audit report (j) All approval requirements of other relevant authorities shall be adhered to,” the document notes.

The Minister of Public Works said that bidders explained that some of them would like to have technical engineers and other persons visit this country to observe the site and areas they would be working in.

He said that government “remains available to facilitate the travel of those representatives to undertake site visits or conduct studies” they might think are needed.