Liquidated damages are being applied against Civcon Engineering Contractors for failing to complete the construction of the A-Line Pump Station between Versailles and Goed Fortuin, West Bank Demerara.
According to a statement from the National Drainage and Irrigation Authority (NDIA), the contractor has demobilised several pieces of equipment from the site.
“As such, the NDIA has notified the insurance company providing bonds on this project, and a file on the current situation has been sent to the Office of the Attorney General for advice on the way forward,” the statement informed.
The statement came in the wake of concerns and questions raised by Opposition MP Ganesh Mahipaul regarding the status of the $717 million pump station.
The NDIA said it was committed to accountability and transparency and over the years, along with the Ministry of Agriculture, it had crafted programmes aimed at delivering quality drainage and irrigation infrastructure across the country, especially in vulnerable areas. These efforts, however, have been met with challenges as, oftentimes, the NDIA encountered contractors who have underperformed, according to the press statement.
“These instances have been and are being addressed on a case-by-case basis. In some instances, the NDIA applied liquidated damages to contractors who have not been able to complete projects according to the contractual period,” it further highlighted.
“The ministry and the NDIA remain committed to delivering on projects aimed at improving the country’s drainage and irrigation needs. While it is not welcomed, contractors have been known to disregard their contractual obligations, thus hampering development in several critical sectors,” the statement said.
Just days ago, Minister of Agriculture Zufikar Mustapha had dismissed comments made by Mahipaul about the current state of construction of pump stations in Region Three (Essequibo Islands-West Demerara). Mahipaul had stated that the A-Line Pump Station was at a standstill and that despite significant disbursements only a paltry 10% of the project had been completed. He had also specifically mentioned three other projects: Pouderoyen, Meten-Meer-Zorg, and Belle Vue.
According to a statement from Mustapha, published in this newspaper on April 26th, “all three pump stations” were to be completed by August 4th next year. However, the minister had fudged the issue, only making specific mention of the pump stations at Pouderoyen, Meten-Meer-Zorg, and Belle Vue and omitting to say anything about the A-Line project. Yet, he had dubbed Mahipaul’s comments as “ludicrous”.
For his part, Mahipaul, in a letter published in this newspaper, alluded to Mustapha’s visit to the Canal Number One Pump Station as political posturing. He wrote that the minister had conveniently ignored “the neighbouring A-Line and Pouderoyen” pump stations.
Mustapha had responded that he had visited the Canal Number One location with a team of senior officers from the NDIA, on his way back to the city after attending several meetings with residents and farmers from Maria’s Lodge, and other surrounding communities in Region Three.
