Company paying damages for incomplete West Bank Demerara pump station

Last Updated on Friday, 26 April 2024, 19:45 by Writer

A company that was awarded a GY$717 million contract to build a pump station at A-Line, Goed Fortuin, West Bank Demerara now has to pay liquidated damages because the 12-month project has been stalled beyond its original completion date by 10 months, the National Drainage and Irrigation Authority (NDIA) said Friday evening.

“In the case of the A-Line Pump station, the contractor has not been able to complete the project on time. As a result, liquidated damages are now being applied,” the Authority said in a statement in resp0nse to concerns by opposition A Partnership for National Unity+Alliance For Change (APNU+AFC) parliamentarian, Ganesh Mahipaul.

NDIA said it has notified the insurance company that has provided bonds for the project and sought legal advice from the Attorney General, Anil Nandlall after the contractor “demobilized several pieces of equipment from the site.”

The NDIA statement on the A-Line pumping station at Goed Fortuin came several hours after Mr Mahipaul called on Agriculture Minister Zulfikar Mustapha and NDIA for a comprehensive explanation regarding the apparent stagnation of this vital project. “Given the substantial investment and the protracted timeline, transparency and accountability are not just desirable but imperative,” he said earlier Friday.

By his account the Pump Station at A-Line – Goed Fortuin began in June of 2022 at a cost of $717M and was awarded to Civcon Engineering Contractors. He said the pump station should have been completed by June 12, 2023 but the deadline was extended to March 29, 2024.

Mr. Mahipaul supplied pictures showing that the project was stalled on April 26, 2024.