One of the more important disclosures to come out of the post-budget presentations in the National Assembly last week was the one made by Minister of Business Dominic Gaskin regarding what we hope is a definitive confirmation that the 20 per cent allocation of state contracts to small businesses will take effect in January 2019. The insertion of the caveat has to do with what we are told are the various ‘loose ends’ that have to be tied up, not least the one that has to do with the harmonization of the provisions spelt out in the Small Business Act of 2004 with national procurement legislation. In other words an important prerequisite to going ahead with the full implementation of what is in the Small Business Act is that it must also be enshrined in the Procurement Act, the legal framework that guides the behaviour of procurement entities.
Arrival of the 20% allocation to small businesses legislation to the point where it is today took very long and if ever there was a case of the grass growing whilst the horse was starving, this, surely, was one of those open and shut cases. The biggest impact which the full implementation of this provision in the Act is concerned with will be to afford more modest businesses, previously not considered worthy of state contracts to access those. That, of course, will have a significant knock on effect insofar as employment levels are concerned, the truth being that once the provision is implemented honestly and transparently, over time, thousands of additional jobs could be created for Guyanese.
As the Minister pointed out in his presentation in the National Assembly it may well be possible to clearly identify a clutch of contract areas of a particular size that would amount to the 20% allocation envisaged in the Act. Then there is, of course, the question of capacity, the point here being that some of the contract areas that might be accessible may simply be outside the capability of many of the smaller businesses.
One possible way around this is to create conditions that allow bona fide small businesses unhindered access to what one might call the ‘low-hanging fruit,’ that is to say those areas in which those small businesses may have proven competence.
But it is its integrity as a system upon which the 20% provision has been known to stand or fall. We know from numerous previous reports of the Auditor General that tender procedures at state agencies are not necessarily always above board and that there have been cases, many of them, in which room has been created for glaring instances of the crudest nepotism. The reality as far as the 20% allocation provision is concerned is that it could, in theory, fall victim to a complete ‘takeover’ by functionaries possessed of the authority to do so. What we must guard against is the carving up of the entire process into a regime that becomes sufficiently burdened down with nepotism and backhanders such as to cause it to degenerate into a national scandal.
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Repairing sister islands’ administration buildings, upgrading school facilities, and removing derelict boats are among the projects the Recovery and Development Agency is preparing to tackle after working with the Premier’s Office and government ministries in recent months to set priorities, RDA officials told the Beacon.
The independent agency began issuing recovery-related contracts before lawmakers passed the territory’s official “Recovery to Development Plan” in October. The order of those contracts was based on priority lists submitted to the RDA by the ministries, according to RDA CEO Paul Bayly.
Though the plan is now in effect, it is short on details regarding the intended order and priority of specific recovery projects. But the CEO said the dialogue with the ministries and the Premier’s Office will continue to guide the agency.
Based on that dialogue, upcoming projects include restoring the Jost Van Dyke and Virgin Gorda administration buildings; improving the conditions of the Elmore Stoutt High School’s temporary facilities; and organising the removal of about 280 derelict boats from the territory’s marine areas, according to Matthew Waterfield, the deputy director of planning for the RDA.
A contract was signed for the JVD administration building last week, and work on the VG building will likely commence in early 2019, the deputy director explained.
The agency was still working out the logistics for the boat removal project, which will likely be awarded to multiple contractors and is probably about three or four months away from beginning, he added.
Additionally, debris clearance work is expected to mobilise on Virgin Gorda this week to help remove derelict cars and scrap metal from the sister island, Mr. Waterfield said. A car crusher is expected to arrive on the island via barge.
Regulations
Meanwhile, on Oct. 10 Cabinet approved various principles for regulations governing the agency, which are currently being finalised in the Attorney General’s Chambers and are expected to be approved before the end of the year, according to Mr. Waterfield.
One of the principles would oblige Cabinet and the ministries to set out three-year priorities and an “annual letter of expectations” for the RDA. The agency is then supposed to take those into account when forming its implementation schedule, according to a document summarising the Cabinet meeting.
Cabinet also approved a principle for the RDA regulations, stating that the “lead minister may convene a committee of the whole House of Assembly to discuss and agree any aspects of RDA’s implementation schedule, work plan and budget.”
Additionally, Cabinet can re-assess its priorities and initiatives on an annual basis, according to the document.
Procurement
Though the regulations governing the agency’s procurement processes have yet to be finalised, John Primo, the RDA’s head of procurement, told the Beacon earlier this month that the agency plans to have public tender openings for projects that are put through a competitive bidding process.
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First, let me wish a happy, God-blessed new year to the people of Montserrat young and old, near and far; to all citizens, residents, visitors and friends. May we all go forward with God together in this New Year which God has graciously allowed us to see.
As we move forward into 2019, there is great hope and good reason to be optimistic. Over the past two years we have been blessed with several breakthroughs that open up opportunities to build a sound future. Yes, the sea port, the undersea fibre optic cable, geothermal and solar energy development, the pending hospital, the EU funding, the new growth strategy, a five-year capital programme, several investment opportunities and more are now open before us, as I discussed in my recent interview with our acting Communications Director.
In the past four years the Government of Montserrat (GoM) has been able to weave the landscape that now projects the opportunity for growth, development and a thriving economy. We stood on our own two feet before this crisis, and after 23 years of resilience training, we are ready to do it again.
First I must give some good news on private sector investment initiatives. For example, in Dick Hill the Art Housing project has put in place the foundations and the road infrastructure to the 10 unit villa project. The next stage will resume where we shall see the buildings going up. This was confirmed on my recent visit to the UK. Meanwhile, we continue to advance potential projects in water bottling and the digital sector of our economy. These projects will provide services to the outside world and bring significant employment and revenue to the Government and People of Montserrat.
Let us now take note of the progress with various ongoing projects. Some of the following projects are more visible than others, but we are making good progress that will help us to build a solid future:
Carr’s Bay Bridge: With funding in place, we can all see that frameworks have been set up, concrete has been poured for the main bridge structures and work is ongoing. The bridge deck, base and vertical walls are already in place. The wing walls, the catchment, the outfall and the head walls will follow. Works on the Carr’s Bay Bridge are scheduled to be completed by January 31st.
Barzeys Road and bridge: We have completed 820ft of concrete roadway with an average width of 20ft. The work also required kerbs, drains, retaining walls, building a bridge and re-aligning the roadway. The resilience, safety and access on this section of road have been greatly improved as a result of the works completed.
Sea Port, Phase 1: A year ago, Caribbean Development Bank (CDB) approved 14.4M pounds (about EC $50 million) for the development of Port Little Bay under the UKCIF fund. GoM will provide an additional 7M pounds (EC 24 Million) to assist with the project expenditure. CDB & GoM have developed Terms of Reference (ToRs) for the procurement of the Project Manager, Marine Consultants, Environmental and Social Impact Assessment Consultant (ESIA). Land has to be acquired; asking prices suggest that we will need to take the compulsory acquisition process route.
The Public Procurement Board has issued an award letter in Dec 2018 to STANTEC Consultants out of Barbados, who will be on island in early January 2019. A Project Coordinator for the Port project is expected to be in place by February 2019. The ESIA for the Port Project will be done by the Technical Consultants, to meet a deadline of Mar 2019. The Technical Consultants will also advance the tender process for the Design Build Contractor. This should start in June or July. Under the European Development Fund (EDF), the Port project must be completed by 2020/21.
Airport: Construction drawings for the new Air Traffic Control Tower are nearly complete and tender documents are being developed. The Prefabricated Cab for the Tower was expected on island by end of December 2018. Of the EC$2.315m of GoM/Department for International Development (DFID) and EU funding for this project, EC$961,531.00 has been spent on the Cab. EC$324,732.04 has been spent on equipment for the new Air Traffic Control Tower. The remainder will be spent on a final payment for the pre-fabricated cab, as well as on the construction of the Shaft.
Fibre Optics Cable: This is a priority project for GoM and DfID. It will greatly enhance resiliency of our communications in the face of hurricanes and open the way for a powerful digital sector in our economy. Funding of about £5 millions is assured. The request for proposals is being finalized and should go to the Market this month. It will then take another month to have a contract in place. We intend to have the fibre optic cable in place for the peak of the Hurricane season, August.
Hospital and healthcare: The hospital project is a part of the five-year capital programme being further developed with the UK, which helps to secure funding. A steering committee is being set up for the project. Wider ongoing developments include better pediatric care, improved psychiatric care, sharing of anaesthesiology resources with neighbouring islands and creation of Memorandum of Understandings (MoUs). Options are being explored for better air ambulance services to Guadeloupe. Healthcare in Montserrat continues to benefit from technical support through the UK departments, such as Public Health England and the Department of Health, as well as DFID and FCO in meeting its international health obligations while we address local challenges.
ZJB New Building: This is now nearing completion and the Station will soon be moving house. Equipment for the new building was successfully tendered and a new generator should arrive shortly. While waiting on the new equipment to arrive I have given the directive for them to occupy and broadcast from the New ZJB building with our present equipment.
250 kW Solar PV project: This project is expected to be completed by the middle of March and will increase the resilience of our Electricity supply through solar energy. Upon completion the roof top solar installation is expected to produce 250 kw of solar energy. This project’s capacity is approximately 10% of our peak power load, and it is intended to develop a second phase, of 750 kW, as was announced last November when CARICOM Energy Month was launched here. Installation is scheduled to begin on the 14th January 2019. The total expenditure to-date has been $870,490.
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Opposition People’s Progressive Party (PPP) Shadow Health Minister, Dr. Frank Anthony on Tuesday assailed the David Granger-led coalition administration for alleged bad drug importation deals, unregistered importing entities, increased prevalence of HIV/ AIDS and failure to assist the country’s estimated 60,000 diabetics with free glucometers.
Anthony, who is one of his party’s presidential candidate hopefuls for the 2020 general elections, was evidently passionate as he contributed to the 2019 National Budget debate.
Noting that Junior Health Minister, Dr. Karen Cummings confirmed multiple drug resistance tuberculosis (TB), Anthony said that was due to a shortage of critical drugs, inadequate monitoring, non-compliance and sometimes patient poverty. “Many of these patients are too ill to work and with the paltry sum set aside for public assistance, when they do benefit, it is hardly enough for them to survive,” Anthony said. He insisted there were up to recently shortages of TB drugs from the Global Fund.
In the area of HIV/AIDS, he said the disease has been on the rise in certain age groups- the adult prevalence rate being 1.7 percent; 6.1 percent among sex workers and 8.4 percent transgender persons. He echoed calls by the gay and lesbian rights organisation, Society Against Sexual Orientation Discrimination (SASOD), for government to introduce Pre-Exposure Prophylaxis to help reduce the incidence of the disease among high-risk groups. “I urge the government to implement this most effective way of preventing this disease in the country,” he said. The Chief Medical Officer, Dr. Shamdeo Persaud has said government was studying the experiences of other countries and organisation in using PrEP. There are an estimated 8,200 persons living with HIV, but 5, 237 are receiving treatment, prompting him to call on government to allocate more funds to treat everyone tested positive.
Dr. Anthony called on the Guyana government to match its words with action in fighting non-communicable diseases such as diabetes. While a glucometer, which is used by diabetics to test their blood sugar levels, costs about GYD$5,000 each, Anthony said government could have easily supplied these to the estimated 60,000 diabetics countrywide. “If we take the money that we had wasted from the Sussex Street bond, we could bought about 65,000 glucometers and give it to those patients.,” he said.
He said the Public Health Ministry was filled with “stench” on procurement of drugs and other medical supplies, as he alluded to the 2017 Auditor General’s Report that states that ministry had single-sourcing drugs through 13 contracts valued at GYD$91.4 million. “Single sourcing, we know Mr. Speaker, can lead to higher prices for the items because the vendor has a monopoly,” he said. Contracts amounting to GYD$278.5 million were awarded without bid security, splitting of 11 contracts totaling GYD$82.5 million to four contractors, and GYD$104.1 million in single-sourced drugs through six contracts without the approval of the Tender Board were among the observations made in the Auditor General’s Report. “The tender board was asked to rubber stamp the transactions after the deliveries were made to the suppliers. Dr. Anthony cited HDML Labs as possibly being given preference for the award of a GYD$409.4 million contract for the supply of medical supplies instead of the initial contract price for GYD$366 million. “When the contract was audited then we saw how much more was given to this company,” he said, adding that there was a huge gap between that company and other offers. “This is how our money is being squandered and wasted in this country,” he said.
Minister of Public Health Volda Lawrence has publicly defended sole-sourcing to fulfill emergency needs for drugs.
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Minister of Public Infrastructure, David Patterson on Wednesday denied a claim by People’s Progressive Party (PPP) frontbencher, Juan Edghill that GYD$79 million extra was disbursed for a Dutch feasibility study that has been mired in controversy.
“What you are saying there is absolutely untruth,” Patterson told the House in rebutting Edghill. The Minister, however, did not go into details about disbursements that Edghill said was made.
T he Dutch company, LievenseCSO Engineering Contracting BV, had recommended that government builds a low three-lane bridge with a retraction area to allow ships to pass. Government has since scrapped that plan and has decided to construct a four lane high-span crossing. In the 2019 National Budget, another GYD$100 million have been allocated for a feasibility study.
In his contribution to debate on the 2019 National Budget, Edghill called on Patterson to explain how was it that a total of GYD$148 million were paid to the Dutch company, for an unsolicited feasibility study, but figures show that GYD$227 million were paid over by the Demerara Harbour Bridge for that job.
Based on a finding by the Public Procurement Commission that Patterson had allegedly breached the Procurement Act and Guyana’s Constitution by sole-sourcing the contract without going through the National Procurement and Tender Administration Board, the PPP has gotten the Guyana Police Force’s Special Organised Crime Unit (SOCU) to conduct an investigation. Patterson has since been questioned by SOCU agents and the matter has gone for legal advice.
In the House on Wednesday, Edghill said in the Procurement Commission Report on the issue states that on November 25, 2016 Cabinet approved GYD$161, 514,420 to pay for the study. He highlighted that in December, 2016 the General Manager of the Demerara Harbour Bridge inked a contract without approval of that entity’s board.
Edghill claimed that in 2017 the Asphalt Plant of the Demerara Bridge paid GYD$153,250,385 on the feasibility study and in January, 2018 an additional GYD$14,728,000 and in February GYD$59,340,00 was spent on the project.
Minister of Public Infrastructure, David Patterson on Wednesday ignored a call by People’s Progressive Party (PPP) frontbencher, Juan Edghill to explain why another GYD$100 million is need for feasibility studies for the proposed new Demerara Harbour Bridge and to account for GYD$79 million related to the first study that has been mired in controversy.
In his contribution to debate on the 2019 National Budget, Edghill called on Patterson to explain how was it that a total of GYD$148 million was paid to the Dutch company, LievenseCSO Engineering Contracting BV, for an unsolicited feasibility study, but figures show that GYD$227 million were paid over by the Demerara Harbour Bridge for that job.
“We were told that the Dutch company only got 148 million. Where did the rest of the money go? We want to know today, not that we will get the information to you. Get it to us today…even the accounting from the asphalt plant is not accurate. How much did you send? Please tell the Honourable House this afternoon because you asking for another 100 million for the Demerara Harbour Bridge from the budget,” Edghill said.
However, when it was the Public Infrastructure Minister’s turn to speak, he merely confirmed that GYD$100 million was indeed set aside for feasibility studies for the new Demerara Harbour Bridge link from Houston, East Bank Demerara to Versailles, West Bank Demerara.
Based on a finding by the Public Procurement Commission that Patterson had allegedly breached the Procurement Act and Guyana’s Constitution by sole-sourcing the contract without going through the National Procurement and Tender Administration Board, the PPP has gotten the Guyana Police Force’s Special Organised Crime Unit (SOCU) to conduct an investigation. Patterson has since been questioned by SOCU agents and the matter has gone for legal advice.
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