Over $5.5 Billion that was approved by the National Assembly for key developmental projects under the Ministry of Public Works was returned to the Consolidated Fund at the end of 2021 due largely to delays in securing contractors, the Auditor General report has found.

Among the affected projects were the East Bank-East Coast Road Linkage Project and the Linden-Mabura Road.  

According to the report, $32.9B was allocated to the Ministry of Public Works for the execution of capital projects in 2021. However, it received supplementary funding to the tune of $5.026B, resulting in a total of $38.026B, but the Ministry only spent $32.5B, leaving $5.522B unspent.

The Auditor General pointed out that of the unspent amount, $5.519B was intended to be used for the execution of five key infrastructural projects – the East Bank/East Coast Road Linkage, the Highway Improvement Project (East Coast Demerara), the Road Network and Expansion Project, the Linden Mabura Road and Kurupukari Bridge Project, and Sea Defence.

The National Assembly had approved a collective sum of $10.775B for the projects.

Pointing to the East Bank-East Coast Demerara Road Project, which was funded through a loan from the Export-Import Bank of India, the Auditor General said though $1.060B had been allocated for the design and construction of the road link, only $242M was spent on drone surveying services between Ogle and Eccles Highway. That meant that $1.059B went unspent.

“As a result, the intended benefits of this Project, which included improved access, and reduction of traffic congestion and travel time, continued to be delayed. The activities were re-budgeted in 2022,” the Auditor General said.

In its response to the Audit Office, the Public Works Ministry explained that though the  prequalification and tendering process spanned five months – March 5 to August 24 – no bids were submitted for the project at the bid opening in 2021.

“As a result, the Ministry reached out to the Government of India to advise on how the Project can be realised. It was agreed that the prequalification process is done again with the aim of capturing a wider pool of Contractors. The India EXIM Bank agreed to have the technical prequalification done by the India Ministry of Transport with the aim of drawing a wider pool of Contractors,” the Public Works Ministry explained.

It was noted that the India Ministry of Transport launched the technical prequalification process on October 29, and the following day the Public Works Ministry here launched the financial bid.

“These two processes were done concomitantly and only the financial bids of the Contractors who were compliant with the technical prequalification were opened or considered for evaluation,” the ministry explained.

It was not until December 8, 2021 that the India EXIM Bank provided a list of the approved prequalified contractors.

The Linden-Mabura Road Upgrade and the Kurupukari Bridge Project were also affected due to delays in the tendering process.

The Auditor General explained that while $3.535B was allocated for the provision of studies and the construction of the road project in 2021, only $23.099M was spent.

As such, $3.512B was not spent.

“The unspent balance was due to delays in the selection of contractors, which caused a further delay in receiving no objection from the funding agency. As a result, the mobilisation advance and bond could not be received in time to make payment. This activity was re-budgeted for in 2022. This may result in the project’s intended benefits of improved access and reduced travel time, being delayed,” the Auditor General explained.

In the case of the Road Network and Expansion Project, $433M of the $3.682B allotted to the project in 2021 was not spent. Approximately $512.6M of the $1.359B allocated for sea defence in 2021 was also not spent.

Related posts:

$44.7 Billion Supplementary budget passed; Housing Ministry to receive additional $21 Billion Budget 2022: $76.7 Billion allocated for roads and bridges; Preparation works for new Demerara bridge to begin Jordan slams “sloppy works” by local contractors and slow implementation of projects Public Works Ministry robbed of $8 Million payroll