The country’s largest civil works project will not resume until March 2003 – one month after it was originally slated for completion. And when road works get underway, the original contractor will be completely “out of the picture.”
After more than two months of talks, the government’s discussions with the Receiver of the UK-based Associated Asphalt are finally drawing to a close.
“The intention is that we try to restart the work by March, which allows lead time for things to be in full gear by next summer,” said Colin Marshall, deputy director of Public Works and coordinator of the $66 million, New Providence Road Improvement Project.
In an interview with the Bahama Journal Tuesday, Mr. Marshall said he is “hopeful” that the government will be able to make a decision on the way forward “shortly.”
Associated Asphalt suspended all road works on July 3, after it was discovered that its parent company, the Stenoak Group, was in financial difficulties.
With Stenoak unable to pay its creditors, the company was placed under receivership on July 5. Since then, the government has been immersed in talks with the company’s Receiver, who visited Nassau in July and August.
The new roadwork completion date is now set for December 2004.
Temporary road works like paving, signage and back-filling of trenches were 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 directly shouldering $19.8 million of the road improvement costs. The balance of the cost is being covered by a $46.2 Inter-American Development Bank (IDB) loan.
The government is evaluating a number of proposals from international companies to complete the road works project, which includes the construction and improvement of roads and sidewalks, the implementation of safety features, traffic signals, street lighting, and drainage.
When the road works resume, Mr. Marshall said the government will look to recover any additional costs – resulting from the switch in contractors halfway through the project – from Stenoak’s Receiver or Hermes, the German Bank which guaranteed the performance of Associated Asphalt.
The UK-based Mott McDonald has compiled a list of Associated Asphalt’s creditors. To date, $1.5 million – of the $2.5 million owed to local creditors – has been paid out.
Mr. Marshall promised that the government will address the outstanding bills “in the near future.”
