The Attorney-General and Minister of Legal Affairs, Anil Nandlall, is seeking millions in the claim from a local contractor, S. Maraj Contracting Services following the noncompletion of the Leguan Stelling. In court documents seen by this publication, the company is listed as the first defendant, while insurance provider, Assuria General (GY) Inc., is the second-named defendant.
CLAIM
The AG is claiming on behalf of the State:
1. General damages above $100M against the contracting company for breach of the contract dated 18th September, 2018 for the Rehabilitation of the Leguan Ferry Stelling;
2. The sum of $41.3M as liquidated damages from the contractor according to the provisions of the contract dated 18th September, 2018;
3. The sum of $41.3M as the sum due, owing, and payable by the contractor under Performance Bond issued by Assuria General for agreement dated 18th September, 2018 for the stelling project;
4. The sum of $ 81.3M as the sum due, owing, and payable by the contractor under the Mobilization Bond issued by Assuria for the Stelling agreement;
5. An Order for Restitution from the contractor for $81,3M;
6. Aggravated damages for $100M for the contractor alleged breach of the agreement for the construction of the facility;
7. Alternatively, an Order of Restitution against the Assuria for all monies owing on the Advance Guarantee and Performance Bond to the Government of Guyana;
8. Interest following Section 12 of the Law Reform Miscellaneous Act, Chapter 6:02, Laws of Guyana. Such further or other Orders as the Court deems just and reasonable.
The AG in the claim, noted that the Government of Guyana through the Transport and Harbours Department (T&HD) executed a written agreement with S. Maraj Contracting Services on September 20, 2018, for the rehabilitation of the Leguan Ferry Stelling. The contract was executed for the sum of $413.2M and was supposed to be completed on or before June 18, 2019.
The contractor, according to the document, submitted an agreed schedule of works to the Project Consultant, but failed to execute the works in accordance with the agreed works schedule and has caused the project to be inordinately delayed.
As a consequence of the alleged failure of the contractor to comply with the Programme of Works submitted to the Project Manager, an assessment was done by the project consultant, Quintech Engineering Services, and it was allegedly discovered that the contractor had only completed “minimal” works, and the project would have been delayed approximately two years.
As a consequence, the Government of Guyana caused the contract to be terminated on February 22, 2021, on grounds of failure to comply with the schedule of works and the inordinate delay in carrying out works on the part of the contractor, which amounted to “fundamental breach” of the Agreement.
