The Government of the Bahamas has terminated its original contract for the $66 million New Providence Road Improvement Project that was halted in July and is looking for another contractor to continue the work, Works and Utilities Minister Bradley Roberts told Members of Parliament this morning.
The original contractor, Associated Asphalt, suspended all road works on July 3, after it was discovered that its parent company, the Stenoak Group, was in financial difficulties.
The project came to a halt fifteen months after the contract was signed.
Mr. Roberts said the government will retain the UK firm of Halcrow to finalize the design phase of the project, which he said is already 85 percent complete.
Bids will be invited on a construction-only basis, he said.
“This format will save time and is expected to result in more competition from a wider range of contractors, and hence keener prices,” Mr. Roberts said. “I would also add that negotiations to date on the design fees indicated that significant savings on the cost of Halcrow’s services will be made, in comparison with the price that would have been payable via the Government’s contract with Associated Asphalt.”
Mr. Robert emphasized that in the tendering process for the new construction contract, the participation of Bahamian contractors and suppliers will be strongly encouraged by this government.
“Bidders will be required to spell our their intended arrangements in both this regard, and with respect to the respective contributions of the parties to any proposed joint ventures,” he said. “It may be noted that a significant factor in the failure of the first contractor may have been the previous government’s decision to award the contract to Associated Asphalt alone.”
The bidding process will soon begin, he said, and the successful bidder will be appointed by April 2003.
This will allow the new contractor to mobilize in time for the critical Prince Charles Drive improvements which, to minimize public inconvenience, is expected to be completed during the summer school break next year, Mr. Roberts said.
He said a construction period of 22 months is envisaged so that the new completion date for all the remaining road works will be December 2004.
Meanwhile, temporary road works like paving, signage and back-filling of trenches have been taken over by the Ministry of Works.
Associated Asphalt’s finished works are valued at $12.4 million, with the government paying out $9.07 million or 17.4 percent of the contracted sum. Taxpayers are shouldering $19.8 million of the road improvement costs.
Outstanding works include the construction and improvement of roads and sidewalks, the implementation of safety features, traffic signals, street lighting, and drainage.
After the suspension of the project in July, it was determined that Stenoak -Associated Asphalt’s parent company – was unable to pay its creditors. But the UK-based Mott McDonald has compiled a list of the company’s creditors. Recently, officials said that $1.5 million – of the $2.5 million owned to local creditors – has been paid out.
After receiving parliament approval in October, 2000, the former Administration entered into an agreement with the Inter American Development Bank for an approved loan of $46.2 million for the road improvement programme. At the time, it was agreed that the Bahamas would provide counterpart funding in the amount of $19.8 million, for a grand total of $66 million.
