The New Providence Road Improvement Project, that came to an abrupt halt in July, 2002, will recommence in May, provided negotiations with an Argentine contractor are successfully concluded.
Minister of Works and Utilities, Bradley Roberts, announced at a press conference Thursday, that after careful evaluation by the Ministry’s consultants, the Inter-American Development Bank (IDB) and technical staff, it was determined that only one company, Jose Cartellone of Argentina, met pre-qualification requirements.
“The government should therefore enter into negotiations with the company with a view to arriving at a satisfactory price for completion of the road works within an acceptable time frame. Concurrently, subject to the approval of the IDB, my Ministry will proceed with arrangements for a second pre-qualification invitation, should negotiations not be concluded in a manner satisfactory to the government,” he said.
The Works Minister further explained that in order to complete the halted road works, contractors were invited to submit pre-qualification proposals to demonstrate the adequacy of their financial and other resources for the project. He said the four companies, including the Argentine company responded. Two companies were from the United States and the other was from Canada.
Mr Roberts said he was disappointed that only two American companies submitted pre-qualification proposals, after American Ambassador, J. Richard Blankenship, announced last August, that he would attempt to persuade road paving contractors in Florida to “come to the table” and participate in the pre-qualification exercise.
“I am personally disappointed that only two American firms did so, and they did not even pre-qualify,” he said.
In order to qualify, Mr Roberts said, companies had to possess a certain level of sales, profitability and be in operation for a certain number of years. Additionally, he said, the successful contract holder would have to optimize the use of Bahamians to carry out work that they are capable of doing, such as driving vehicles and directing traffic.
The Argentine company, unlike Associated Asphalt Ltd, Mr Roberts said, is a very “strong” financial company and the Ministry can make available, a copy of the company’s financial statement.
Mr Roberts said the government has made the decision not to proceed with the previous design/build contract format as the one initially contracted with Associated Asphalt Ltd, but will complete the remaining design work and award a construction-only contract. He said the Ministry has therefore engaged the services of the original design consultants, Halcrow Limited.
“I am pleased to inform you that my Ministry was able to contract with this United Kingdom firm to complete the design at considerable savings to the Bahamian people, when compared to what would have been paid to Associated Asphalt for these services,” he said.
As the government initially contracted Associated Asphalt Ltd to construct roads under the NPRIP, Minister Roberts noted that a comprehensive list of Associated Asphalt’s creditors has been complied, and the government has secured the agreement of the Receivers to withhold some $2.08 million of payments due to Associated Asphalt, that were under process when the work stoppage occurred.
He said that as these funds only sufficed to settle a portion of the outstanding bills, the government, in consideration of the extreme hardships being faced by the creditors, has agreed to make an additional ex-gratia payment to all creditors, amounting to some 25 per cent of the agreed billings.
The NPRIP called for 19 different corridors to be constructed in New Providence, including more than 30 miles of drainage improvements, traffic signals, street lighting, improved signage, road markings, sidewalks and safety enhancements.
Road works that were scheduled from 2002 included the construction of corridors on Bethel Avenue, Gladstone Road, Baillou Hill Road/Market Street, Marathon Road, East Street, Robinson Road and Prince Charles Drive, among others.
The only work under the NPRIP that was completed consisted of parts of Pinewood Drive, Charles W. Saunders Highway and Gladstone Road South, leaving potential hazards in areas where there were uncompleted corridors, trenches, open excavations and unfinished road surfaces.
It took weeks before these areas were sorted out, in addition to having two-way traffic restored on Abundant Life Road, Bamboo Boulevard and Sir Milo Butler Highway.
Mr Roberts said that if negotiations are successful and works resume in May, the Ministry would start with Prince Charles Drive as a priority, as previously scheduled.
The project has undergone several changes since the initial $52.2 million dollar contract was signed with Associated Asphalt Limited on April 5, 2001.
The government obtained a loan from the Inter-American Development Bank in the amount of $42.5 million to help finance the project, described as the single greatest civil works initiative in the history of the Bahamas.
Although originally scheduled to be completed in mid 2003, uncertainty set in on July 3, 2002 when Associated Asphalt Ltd suspended operations.
Reports that the company was experiencing financial difficulties had circulated prior to the work stoppage.
On July 5, 2002, the Stenoak Group, which owned 100 per cent of Associated Asphalt Ltd, went into receivership, with the project coming to a halt.
Mr Roberts told Parliamentarians in July 2002, that the design of the NPRIP, which had an estimated value of $3,681,000 was 90 per cent completed, while construction, with an estimated value of $8,793,000 was only 20 per cent completed.
By Tamara McKenzie, The Nassau Guardian
