Testimony before the Public Accounts Committee (PAC) of the House of Assembly has revealed that the New Providence Road Improvement Project will eventually cost over $150 million, approximately $40 million over the intial budget.
In an exclusive article in today’s paper, the Nassau Guardian reports that officials from Argentinian contractor Jose Cartellone Construcciones Civiles (JCCC) also testified that they do not expect the project to be completed until sometime in September, 2012, despite government’s initial promise that it would be completed by the first quarter of next year.
The cost overruns are said to be the result of new components being added to the project, unanticipated costs, delays in design and the rising price of raw materials.
JCCC estimates that the cost of raw materials is now 25 percent higher than prices benchmarked in the original contract, which despite the FNM’s promises of a transparent government, has never been tabled in the House of Assembly.
The government has committed to paying for the cost overruns, which means that it will likely have to borrow more money from the IDB or another international lending institution to cover the $40 million shortfall.
Scathing criticism from residents and business owners in multiple areas of New Providence recently prompted the government to seek outside help to complete the remainder of the project.
Prime Minister Hubert Ingraham recently confirmed that several engineers who worked on the Baha Mar road project will be hired to assist with the project.
Last week, the prime minister stated that several corridors would be opened in the coming weeks to alleviate anticipated traffic congestion during the holidays.
“The public can look forward to a relatively hassle free Christmas season. Baillou Hill Road will be paved [from] Soldier Road in the south, up to Government House. Market Street will come from Robinson Road to Ross Corner and continue along,” said Ingraham, who claimed 11 corridors currently being worked on would be open before Christmas.
