A $3 billion increase in the bid price for the Linden to Mabura Hill road upgrade project is the result of an addition for contingencies and Minister of Public Works Juan Edghill has said it is not unusual for bid prices to be “corrected” during the evaluation stage of tenders.
Documents seen by Stabroek News show that Brazilian firm, Construtora Queiroz Galvao S.A was listed as the most responsive bidder but it did not add 10% for contingencies and there was also a minor arithmetical error. The company was notified and subsequently accepted the error and changed the bid price, moving it from $29, 546747,077.22 (after a discount from $30,618,722,436) to $32,501,421,713.
It is unclear why the absence of the contingency figure had not been detected earlier.
Questioned on the change, Edghill told this newspaper that he could not “confirm any increase. [It is the] corrected bid sum… this is a normal process at evaluation to do the math and correct the bid sum.”
On February 3rd, the Ministry of Finance announced that a contractor had been selected for the project, which is a joint undertaking of Guyana, the United Kingdom and the Caribbean Development Bank (CDB).
The project will provide major support to ease of travel, trade and general connectivity between Guyana and Brazil and open vast opportunities by linking this country’s hinterland communities to Georgetown, the Ministry of Finance said in a release.
“The bids were carefully scrutinized and evaluated by a team of local engineers. After a thorough evaluation process involving engagements and consultations with the Caribbean Development Bank, Consultant Mott MacDonald and other specialists, Bid No. 5, Construtora Queiroz Galvao S.A, was determined as the most responsive bid indicating full compliance with all Environmental, Social, Health and Safety requirements. The CDB indicated its concurrence with the recommendation of the Guyanese evaluation committee and issued its No-Objection to commence negotiations with the winning bidder,” the release informed.
This project will be the largest ever funded by the CDB.
The road works include upgrading the existing alignment to Asphaltic Concrete Surface consisting of 2 lanes being 7.2 metres wide, approximately 121 kilometres long, and the installation of five drainage structures.
The release noted that Construtora Queiroz Galvao S.A is a large Brazilian contractor established in 1966. The company specialises in the construction of refineries, roads, bridges, commercial offices, residential buildings, highways, and sewage systems, worldwide.
In December 2020, it was announced here that the CDB, the United Kingdom, and the Guyana Government, had partnered to fund the US$190 million project for the upgrading of 121 kilometres of road from Linden to Mabura Hill.
The CDB is putting up US$112 million via a loan towards the project. The approved sum for the project represents the largest project that the regional bank has financed in its 50-year existence. The UK is providing a US$66 million grant and the Guyana Government will provide US$12 million taking the total to US$190 million.
