Trinidad and Tobago
The Audit Office of Guyana has launched a probe into contracts issued by the Public Works Ministry for the supply of aggregate. The Minister of Public Works, Juan Edghill has confirmed that the probe is underway.
The issue was recently brought to light after reports surfaced that one of the contracted suppliers who benefited from sole-sourcing might have provided aggregate that may not be usable for the projects it was earmarked for.
In a statement last evening, the Works Ministry noted that since the current government took office, it has been fast tracking its developmental agenda which placed a demand on local aggregate in particular stone and crusher run, which saw prices being bumped up overtime.
The Ministry explained that in an effort to understand the capacity of the current market, Government met with several noted local aggregate providers/quarries and new quarry operators to ascertain their capacity and logistical challenges back in 2020, while contractors were also given the opportunity to import aggregate materials in an effort to meeting the demand and to keep the rate competitive.
The Ministry said it was realised that the local market could not service the demand sufficiently at the time and as result, severe price increases were experienced.
In November 2022, the Ministry went out to tendering for the supply of aggregates, but it claimed that there were still shortages and it made a decision to single source contracts.
“As such, and having conducted a public procurement process, and bearing in mind the over 1,100,000 tons supply deficit, the Government engaged 8 other suppliers much lower value contracts using Single Source Method of Procurement as catered for in the Procurement Act of Guyana. These suppliers were all vetted, samples of their aggregates tested and rates agreed upon to be in keeping with fair market value. This amounted to approx. 985,000 tons and sought to cater for the demands in regions 2, 3, 4, and 6; all of which had extensive projects being executed,” the Works Ministry explained.
It is that process that is now triggering both an internal and external investigation into the awarding of the contracts.
The Ministry believes that it had to intervene since there was an outcry in the construction and associated sectors over the high prices for aggregates.
There are reports that hundreds of millions of dollars in contracts were handed out through the single source method.
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Barbados
Barbados is set to receive US$56 million (BDS$112 million) more in financing from the International Monetary Fund (IMF).
The Washington-headquartered agency said on Friday it would immediately release the money after its executive board concluded the third review of the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). US$19 million (BDS$38 million) of the money is being paid out under the EFF while the US$37 million (BDS$74 million) falls under the RSF.
This latest release will bring the total disbursement which Barbados has received under the two funds to US$112 million (BDS$224 million).
Following a visit by a mission team May 13-21, the IMF reported on Friday that as far as the programme implementation for the EFF was concerned, “all quantitative performance criteria for this review have been met”, and in some cases surpassed target.
“Key structural benchmarks have also been completed, including those to: implement a formal and time-bound process for requalification of tax exemptions and waivers under the modernised framework; establish a Cash Management Unit in the Treasury Department; develop standard contracts for routine government procurement; and approve of plans for the reform of key state-owned enterprises,” it added.
However, two end-March structural benchmarks were not met: The National Insurance and Social Security Service (NISSS) has only submitted some financial statements, with the others to be handed in in the coming months; and efforts to launch a central online platform for government services and monitoring of public investment are still progressing,
“albeit with some technical delays”, the IMF said.
“Modifications to the June and September primary balance targets are proposed to accommodate a modest frontloading of critical capital expenditure ahead of the rainy season,” the international lender said.
As for the RSF, the IMF said the Barbadian authorities had completed both reform measures for this review. It noted that in March, the government tabled a Stormwater Management Act, replacing the Prevention of Floods Act; and Cabinet approved the Energy Efficiency and Conservation Policy
Framework to reduce energy use of all government agencies and develop efficient public lighting.
According to the IMF: “The authorities are also advancing important work on: a new Electricity Supply Bill to enhance competition and promote local participation in renewable energy investment; integration of climate risks into financial stability assessments; and integration of climate concerns into the public financial management process.”
The IMF noted that the island’s economy has recovered to pre-COVID-19 pandemic levels and its external position has improved. It further highlighted that gross domestic product (GDP) growth is expected to remain strong in 2024, driven by a rebound in tourism and related sectors.
The island’s US$1.5 billion in international reserves at the end of 2023, which represented seven months of import cover, was also highlighted by the Fund.
At the same time, the IMF highlighted a number of risks to the growth outlook for the economy, including the potential global economic and financial shocks, as well as natural disasters.
“The medium-term growth outlook remains vulnerable to potential global economic and financial shocks and natural disasters. An abrupt global slowdown or recession in key source markets (US, UK, and Canada) could impact tourism and weaken growth,” it said.
“An intensification of regional conflicts could also increase global
commodity prices and inflation, reducing real incomes in both source markets and Barbados. An abrupt adjustment in global financial markets could also see a rise in global risk aversion and a further increase in the cost of external financing, affecting the fiscal and external accounts.
“The economy remains highly vulnerable to climate change risks and natural disasters, which could have an adverse impact on economic activity, increase the fiscal deficit and public debt, and pose
financial stability risks. On the domestic front, deceleration of reform momentum could generate concerns about the fiscal consolidation and debt sustainability,” it added.
However, it added, these risks are mitigated by “the authorities’ excellent track record of implementation and strong commitment to reform”.
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Jamaica
ocal contractors are being assured that they will not be excluded from the procurement process under the Government’s $40 billion Shared Prosperity Through Accelerated Improvement (SPARK) programme.
The initiative seeks to rehabilitate several of the island’s roadways.
Recently, the Incorporated Masterbuilders’ Association of Jamaica (IMAJ) raised serious concerns that local contractors would be unable to meet the requirements to participate in the programme.
At last week’s post-Cabinet press briefing, Minister without Portfolio in the Ministry of Economic Growth and Job Creation with responsibility for works, Robert Morgan, noted the concerns of the local contractors.
“I met with the Incorporated Masterbuilders’ Association and we had very positive conversations, and I assured them that a part of the procurement process will ensure that local contractors are an essential part of the SPARK programme execution,” Morgan said.
But in an update on the move to execute the project, Morgan revealed that no local construction company has been successful at the pre-qualification stage in the bidding process so far, despite two local entities responding.
Eight construction companies responded, and of the eight, two were local.
“So far, five international companies have been successful at the pre-qualification stage, and this week we will be sending out bid proposals to those five pre-qualified enterprise construction companies,” Morgan informed.
Also, he noted that the proposals will be for the international companies “to bid on the four packages that are across the island”.
It is expected that those bid proposals will be returned by mid-August, after which approval is to be sought from the Public Procurement Commission and Cabinet to award contracts by the end of September of this year, Morgan shared.
He added that, “These contracts will be for two years, with an additional year for defects, liability, as well as where the contractor will be carrying out corrective measures if there are challenges with the completed works.”
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Guyana
As part of its efforts to improve procurement practices and promote accountability nationwide, the Public Procurement Com-mission (PPC) has been conducting training sessions in the various regions.
In a release on Tuesday, the PPC informed that its latest session was held on June 14, at the Bartica Learning and Resource Centre in Region Seven. It said that the session drew a diverse group of 30 participants from various sectors, including members of the Regional Executive Office, Regional Tender Board, evaluators, engineers, and members of the Bartica Town Council.
Also in attendance were procurement staff, personnel from multiple regional and municipal departments such as accounts, procurement, planning, and health, as well as representatives from the Guyana Defence Force and the Guyana Police Force.
The training session covered a wide range of topics relevant to the commission’s operations and the procurement process. These included the PPC’s role and responsibilities (mission, vision, core values and function); the legislative framework, administrative review and debarment process; the public procurement process; threshold and tender openings; and the evaluation process.
Following training sessions in regions Two,Three, Four, Five, Six, and Ten, the commission said that it received a favourable response from Region Seven. The positive feedback from Region Seven, it posited, emphasised the significant value and impact of these sessions, reinforcing the PPC’s dedication to improving procurement practices throughout all regions. “This initiative is crucial in ensuring standardised, transparent, and efficient procurement processes across the country, thereby fostering greater accountability and better resource management.”
The PPC stated its intention to extend similar training programmes to regions One, Eight, and Nine, in the upcoming weeks, which will complete coverage across all ten administrative regions. And by equipping stakeholders with the requisite knowledge and skills, the PPC aims “to cultivate a transparent, efficient, and accountable procurement ecosystem conducive to sustainable development in Guyana.”
The release pointed out that Section 19(1) of the Procurement Act, Cap. 73:05, provides for the National Procurement and Tender Administration Board to create within each administrative region, a Regional Tender Board which is subject to the provisions of the Act. Therefore, it is imperative that the Regional Tender Boards are acquainted with and have a working knowledge of the procurement processes mandated by the Act.
Persons or entities interested in procurement training or requiring further information can contact the PPC via telephone at (592) 226-3729, (592) 231-7306, and (592) 226-2364 or by email at operations@ppc.org.gy
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Jamaica
The Ministry of Education and Youth in Jamaica is actively increasing its efforts to ensure schools across the nation are equipped with state-of-the-art closed-circuit television (CCTV) surveillance systems.
This move is part of a broader strategy to enhance safety and security in educational institutions.
Comprehensive assessment and procurement drive
In a recent statement, the Portfolio Minister, Hon. Fayval Williams, highlighted the ministry’s commitment to the safety of children by outlining the current status and future plans for the CCTV systems in schools.
Following a thorough evaluation, the ministry is aware of the operational status of existing cameras and is now embarking on a significant procurement process.
This initiative is designed to ensure that every school is incorporated into the safety and security architecture essential for creating safe learning environments.
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The initiative is monitored by the Education Transformation Oversight Committee (ETOC), which oversees the implementation of various recommendations from the Jamaica Education Transformation Commission (JETC).
Chaired by Professor Orlando Patterson, the JETC’s report has set the foundation for reforms covering several key areas, including safety and security, governance, curriculum development, and infrastructure enhancements.
Implementation and training updates
Sophia Forbes-Hall, the Chief Transformation Officer, provided an update on the progress of the CCTV project. Plans are underway to prepare a project concept for submission to the public investment appraisal branch by September 2024.
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