GWI takes legal action against contractor

-for failing to change aged transmission lines, overpayment
Legal proceedings has been instituted against LGS Barns General Building Construction and
Civil Engineering by the Guyana Water Incorporated (GWI) for failing to execute a multi-
million dollars contract of replacing aged transmission lines in the Bel Air Park area.
Housing and Water Minister, Colin Croal, at the commissioning of Republic Street, Bel Air on
Friday, revealed that the company was contracted in November 2017 to replace 2,000 meters of
GWI’s transmission lines in Bel Air Park, at a cost of $108 million. He said that the sum of the
four-month contract was subsequently revised to $123 M. The minister said that three years later
in 2020, the company failed to complete the work but was paid handsomely in eight tranches.
Croal disclosed that the contractor received $114, 128, 727, which represents 93 per cent of the
total contract sum. However, the company only laid 225 meters of new transmission lines, thus
completing a mere 11.25 per cent of the work by June 2020.
Despite the value of the 11.25 per cent of works is pegged at $39, 406, 000, some $87,921,215
has been overpaid to the company by the GWI. Therefore, GWI is seeking to reclaim the cash.
“So, GWI has therefore instituted legal proceedings to recover the overpayment of the $87
million and for the contractor to also hand over the additional materials that were procured. That
is now engaging the court,” Croal said.

The minister explained that the replacement of the transmission lines, LGS Barns had to
excavate parts of Republic Street. However, after entering office, the PPP/C Government did not
wait to recover the monies from the company, noting persons were suffering from the deplorable
road. The minister said that in December 2020, GWI handed out a $91 M contract for the
transmission lines to be replaced. He said that the eight-month contract which ended in August,
saw 710 meters of 22 inches HDP transmission lines being earthed.
The water company also took part in beginning the process of repairing the street. “Another
contract had to be awarded and that was done to the sum of $28, 628, 000 for the road works to
bring it up to a level that is called crusher run,” he said.
Meanwhile, the Public Works Ministry, through the special Works Group, completed Republic
Street and repair several other streets in the area, at a cost of $19.5 M, 30 per cent cheaper that
the cost of hiring a private contractor. The Public Works Minister said that despite there was
gross mismanagement, negligence and corruption in the initial contract to replace the GWI
transmission lines, his government must bring relief to suffering Guyanese. “In every NDC, in
every township, in every region, we are improving the lives of people, we are improving the
roads,” Edghill said.The minister also urged businessmen with heavy -duty machinery to desist
from driving on neighbourhood roads.

Ms. Samantha Hollingsworth, a resident, thanked the government for repairing the roads. “Thank
you for your dedication towards cleaning and renovating the roads…I mean excellent work. It is
a joy for us,” she said.
Local Government and Regional Development, Junior Minister Anand Persaud, also attended the
commissioning of Republic Street. He said that the government continues to maintain existing
roads and expand the road network across the country, in line with its mantra of better
connectivity.