The project to redevelop the road network in New Providence is scheduled to resume in May upon completion of negotiations with a new contractor, Minister of Works and Utilities Bradley Roberts announced Thursday.
In April 2001, the government signed a $52 million contract with Associated Asphalt to design and build roads to alleviate traffic congestion in New Providence. However, work came to an abrupt halt in July 2002 when the Stenoak Group, parent company of Associated Asphalt, experienced financial difficulties and subsequently went into receivership.
After considering its options, Minister Roberts said the government decided in November to formally terminate the contract with Associated Asphalt and issued a demand to their bonding bank for repayment of $7,559,250 originally advanced to the contractor at the start of the contract.
Mr. Roberts said after a comprehensive list of Associated Asphalt’s creditors was compiled the government was able to secure the receiver’s agreement to withhold $2.08 million of payments due to Associated Asphalt.
He said the money has been used to satisfy debts owed to some of Associated Asphalt’s creditors, however, the money was not sufficient to pay all the money owed to creditors.
“In consideration of the extreme hardships being faced by these creditors, my government has agreed to make an additional ex-gratia payment to all creditors amounting to some 25 percent of the agreed billings,” Mr. Roberts said.
One category of creditors, the truck drivers who did early earthworks in the first phase of the road works but received no payment, were presented with a cheque for monies owed to them. “A contribution of $100,000 from Associated Asphalt had been secured before they went into receivership. To add to this, my government has agreed to contribute a matching $100,000 to conclude a final payment of $200,000 in full and final settlement of the dispute with the trucker’s association,” Minister Roberts said.
He added that at the time the contract with Associated Asphalt was terminated 90 percent of the design work and 20 percent of the construction had been completed.
Accordingly, the government decided to contract directly with the original road designers, Halcrow Limited, and have them complete the design work for the road improvement project, Minister Roberts said.
The process of identifying a contractor to complete construction of the roads began with an invitation for proposals.
Of the four companies that submitted proposals only one, M/S Jose Cartellone, met the pre-qualification requirements. The Argentine company is presently negotiating with The Bahamas government.
If the negotiations are concluded as expected in May, work would commence with the Prince Charles Drive corridor.
Another section of roadway in need of major repair, Minister Roberts said, is Harrold Road.
He said because Harrold Road is now in a state of advanced deterioration the section between Baillou Hill Road and the Milo Butler Highway will have to be completely reconstructed.
In addition, a roundabout will be constructed at the Yellow Elder Way, Harrold Road junction and two lanes will be added on the north side of Harrold Road to create a four lane highway, Minister Roberts said.
By Darrin Culmer, The Bahama Journal
