Guyana
Chairman of Region 6 (East Berbice – Corentyne) David Armogan says that an investigation has been launched following the findings of Auditor General Deodat Sharma concerning the award of $615.34 million in contracts.
The Auditor General’s report for the fiscal year ending December 31, 2020 revealed that that the Regional Administration breached several sections of the Procurement Act of 2003 when it awarded 206 contracts without public tendering.
Stabroek News first reported the breach on January 6 and when contacted yesterday, Armogan confirmed that an investigation has since been launched.
“I cannot say much about the investigation but this is a large sum and we are investigating what happened and what led to the breaches. We are taking it very seriously,” he said during a brief conversation.
The Regional Chairman did commit to releasing the findings once the investigation is completed along with the recommendations.
The Auditor General’s report related that the Regional Administration prequalified 183 contractors for civil works in January of 2019 and they were retained in 2020 since no prequalification was conducted then. According to the AG’s report, 206 contracts totalling $615.34 million were awarded for capital and current expenditure. However, those contracts were not publicly advertised rather the Region utilized the restricted tendering process.
Section 25 (2) of the Procurement Act of 2003 states “A procuring entity may use a method of procurement other than tendering proceedings in accordance with sections 26 through 29, in which case the procuring entity shall include in the record required under section 10 a statement of the grounds and circumstances on which it relied to justify the use of that particular method of procurement.”
In keeping with the provisions of the Act, the Auditor General requested but was not provided with the documentation to justify the engagement of the restrictive tendering process.
“It was further stated in the Procurement Act 26 (1) (a) when the procurement method of restricted tendering is used, the procuring entity shall invite all Suppliers and Contractors to submit tenders for whichever category they were qualified. However, audit perusal of the Regional Tender Board minutes revealed that for twenty-nine contracts to the value of $232.029M, the Regional Tender Board had invited a maximum of five Contractors and in some instances less than five, to submit tenders,” the AG said in his report while recommending that the Regional Administration ensure full compliance with the procurement laws.
While the Region’s Budget Head did not provide an answer for the breaches, they did commit to undertake full compliance with the procurement laws.
In addition to the region was also flagged for its procurement of drugs along with its storage. The Region overpaid approximately $3.1 million for drugs.
image: pexels-thirdman
Read more
Guyana
A number of upgrades are set for the National Procurement and Tender Administration Board (NPTAB) for this year, according to Finance Minister, Dr. Ashni Singh.
This was revealed by the Minister during his presentation of the 2022 budget last Wednesday where he said that the government intends to continue adhering to stringent principles of transparency and governance in public procurement.
As such the minister stated that this year the government will strengthen the public procurement process through training and capacity building at every level of the process including regional, national and ministerial.
“NPTAB personnel will also be provided with focused training which will be extended to key officials Ministries and Regions who manage programmes and projects,” he said, while adding that the training modules will be done in both face-to-face and virtual settings even as it should commence before the end of the first quarter of the year.
In addition to that, the senior minister revealed that NPTAB is also set to begin working towards the digitization of records in order to have a fully electronic system as the agency prepares to launch an “E-procure” platform by 2024. With that, he mentioned, “we will operationalize the bidders register within the first quarter of 2022 and will design an open and transparent system to rank and classify contractors by capacity and make provisions for electronic evaluations and payments to contractors.”
Singh stated that since entering office, the PPP/C administration has worked diligently to restore accountability and transparency in public procurement. To this end he stated that last year, the government was able to modernise and create a more user-friendly website for the NPTAB where the contracts that have been awarded are displayed as well as the records of all tender openings.
As he spoke of the changes made at NPTAB, it was also noted that the tender openings are now held twice weekly (Tuesday and Thursday) which is a public and virtual opening process. As such, bidders would be able to join the process from the comfort of their offices.
“The business of the board is captured, in structured minutes for each board meeting, and is kept for future examination as is necessary. This is in contrast with the ad hoc arrangements under the previous APNU+AFC government,” Singh declared.
Additionally, it was revealed that the board has updated and issued new standard bidding documents for goods, works and services. Along with that a training manual for procuring entities inclusive of regional and ministerial, has been compiled.
Singh further said that the three-person independent evaluation committees have been remodeled, this means that those sitting on the committees will be drawn from persons and sectors other than from the procuring entity.
“This was aimed at correcting fundamental checks and balances and control inadequacies that were prevalent under the previous administration, where the chairpersons of the evaluation committees were the same persons that chaired the ministerial or regional tender’s board,” he said.
more
image: pexels-pixabay-35550
Read more
Guyana
GEORGETOWN, Guyana, (DPI) – Vice president Dr Bharrat Jagdeo shared that the government of Guyana is putting all systems in place for the approval of the Yellowtail field development plan (FDP), with completion anticipated for March. Yellowtail is Guyana’s fourth and biggest oil project in the Stabroek Block and is proposed by ExxonMobil’s local subsidiary, Esso Exploration and Production Guyana Limited (EEPGL).
“There was an expectation that it would be done for the year [2022]. We had some setbacks, but we have been working more and so we’re anticipating the completion of everything by the end of March latest. We have some consultancies in place and the ministry is reviewing.”
Dr Jagdeo, speaking at a recent press conference, went on to state that there is a draft licence already in place and a parallel process at the Environmental Protection Agency (EPA).
The government commenced the review of the Yellowtail FDP in November last with a virtual stakeholder forum led by the ministry of natural resources. The ministry is tasked with ensuring that the FDP is diligently reviewed and assessed for alignment with the requirements of the Petroleum (Exploration and Production) Act and regulations, good international oilfield practices, and all other applicable protocols, practices and methodologies.
Last month, the National Procurement and Tender Administration Board received bids from 11 international firms that are vying to secure the contract. These included Infinity Services and X Well Mexico; Orwell Offshore; Endeavour Management; Future Energy Partners Limited; MSI International; IHS Global Incorporated; Sun Stone Energy Advisory Service; Bay Phase; RPS Energy Consultants Limited; Sproule; and Strat Oil Energy Services.
The development plan includes up to three drillships drilling up to 67 wells, the floating production storage and offloading (FPSO) vessel and subsea, umbilicals, risers and flowlines (SURF) production system, with tankers taking the oil to global markets.
Importantly, this development will provide over 1,300 jobs across its four phases. In the first stage of the project, called well drilling, approximately 540 persons are expected to be employed at peak.
More about the Yellowtail development
Yellowtail will be situated 126 miles offshore Guyana, where ExxonMobil made its 13th discovery in the Stabroek block. Its initial production phase is scheduled to commence in 2025, with optimum production capacity of 250,000 barrels per day, and would continue for 20 years. The FPSO is designed to have a storage capacity of two million barrels of oil.
ExxonMobil has already received approval for three development projects in the Stabroek block, where it has made discoveries totalling 10 billion oil-equivalent barrels.
Of those projects, production began on December 1, 2019, with the Liza Destiny floating production, storage and offloading (FPSO) vessel at the Liza Phase One site. Production is scheduled to begin at the Liza Phase One operation in early 2022, with the Liza Unity having arrived in the block recently. The Prosperity FPSO is currently being outfitted in Singapore for the Payara project, scheduled for first oil in 2024.
ExxonMobil is the operator of the Stabroek block. Its partners in the consortium are Hess Corporation and CNOOC Limited.
more
image: pexels-tom-fisk
Read more
Guyana
The Guyana government has set aside GY$21 billion (estimated US$100.4 million) for matters related to the construction of the new Demerara Harbour Bridge including fair compensation to property owners in the new path of the proposed thoroughfare and ensuring that the toll will not be expensive, Public Works Minister Juan Edghill said on Tuesday.
“We have to look at the fact that you’re building this bridge and if somebody is bringing total financing and they have to recoup their financing, the price of tolls will go out of whack,” he told the House. He said the amount would include Guyana’s contribution for the construction of the bridge at the best price in two years.
Questioned by opposition A Partnership for National Unity+Alliance For Change (APNU+AFC) parliamentarian David Patterson, Mr. Edghill also said that government had quashed negotiations with the lowest cost responsive bidder, China State Construction Engineering Corporation, that had proposed to build the new bridge across the Demerara Harbour Bridge for US$256.6 million. “The negotiators have since informed the National Procurement and Tender Administration Board that they wish to terminate the negotiation process because the term sheets and the cost of financing would not serve the best interest of the people of Guyana and currently we are negotiating with the second ranked responsive bidder,” he said.
That bidder is joint venture China Railway Construction Corporation International, along with China Railway Caribbean Company Limited and China Railway Engineers which had bid to construct the new Demerara Harbour Bridge for US$260.8 million or US$300 million.
With the western end of the four-lane high-span bridge expected to land near Providence, Mr. Edghill said some of the money would be used for compensation based on valuation of land and properties. He said talks have already started with a number of owners but he refused to say how much money has been set aside for compulsory acquisition for fear that that could fuel speculation to “get a windfall”. “Using the law and fulfilling the constitutional provisions, that if we have to acquire or compulsorily acquire property, it will be in keeping with what the constitution says and at market values,” Mr. Edghill said. Mr. Patterson reminded the Minister that the law provides for government’s Valuation Division to assess the value of the lands.
In response to a question by APNU+AFC parliamentarian Jermaine Figueira about when the Mackenzie to Wismar bridge across the Demerara River would be rebuilt, Mr. Edghill said government’s immediate priority was replacing the bigger bridge which thousands of commuters use everyday. The Public Works Minister said eventually the Mackenzie- Wismar bridge would be rebuilt.
more
image: pexels-rodolfo
Read more
Caribbean
The Caribbean Development Bank (CDB) and CCRIF SPC will host the 2022 Caribbean Regional Risk Conference on April 6 & 7, to provide a forum for policymakers, senior technocrats, and other stakeholders to explore country risk management and risk governance.
Under the theme, “Introducing Country Risk Management to Advance Sustainable Development”, the event will address the myriad of risks facing Caribbean countries, taking the discussion beyond natural hazard risks and climate change, to explore economic, geopolitical, environmental, societal, and technological risks, which continue to impact the region’s development prospects. Already confirmed speakers and presenters are from several regional and international organizations, including the World Economic Forum, the United Nations, The World Bank, Swiss Re, The University of the West Indies, and PriceWaterhouseCoopers, among others.
The conference will highlight the role of integrated risk management frameworks at the country level in enabling policymakers to better anticipate, identify and manage both climate and non-climate risks. Participants also will be exposed to cutting-edge tools, processes, and governance structures, necessary for operationalizing country risk management and developing all-hazards policy frameworks.
President of the CDB, Dr. Hyginus “Gene” Leon said, “In the wake of the global pandemic and the growing threat of climate change, this conference takes on special significance as it sets the stage for us to explore country risk management through a wider lens and build much-needed capacity amongst key stakeholders. We will leverage the experience of both CDB and CCRIF along with recognized experts to stimulate new policy direction and action.”
The Caribbean Regional Risk Conference is part of the Integrated Country Risk Management in the Caribbean Project, launched by the CDB and CCRIF SPC in 2017 to support the development of a regional risk platform for Caribbean governments.
In commenting on the conference and the wider country risk management project, CCRIF’s CEO, Mr. Isaac Anthony said, “As we seek to build forward stronger post-COVID and achieve the SDGs, country risk management and integrated risk governance must be seen as a key strategy for Caribbean sustainable development. This initiative will req uire action by a range of partners whose mandates focus on areas outside of natural catastrophe risks – mandates related to economic and financial risks as well as social and other humanity-related risks – to make it a resounding success for the small island and coastal states of the region.”
The conference will be held virtually and is open to the public. The programme will cater to several target groups including the public and private sectors, civil society organizations, development organizations, academia, and the media.
At the end of the conference, CCRIF, CDB and the Caribbean Centre for Development Administration (CARICAD) will launch the Caribbean Integrated Risk Management Training Programme for the Public Sector.
To register for the conference, interested persons can contact CDB at CaribbeanRiskConference@caribank.org or CCRIF at caribbeanriskconference@ccrif.org
more
image: pexels-christina-morillo
Read more
