Minister of Public Works, Bishop Juan Edghill has revealed the government’s decision to source a new contractor to carry out multimillion-dollar works on the Leguan Stelling.
“We are going back out to tender to get a new contractor engaged because we are seeking to put together what was done and what needs to been done, so we can have a smooth transition. The stelling is not going to be abandoned. I want to make that very clear. This is a high priority for our Government and we are going to get that stelling fixed,” the Minister said during a recent visit to the island with the Head of State, Irfaan Ali.
In February this year, the government pulled the plug on the $413.2M contract for the rehabilitation of the stelling after the contractor was flagged for poor performance, leading to two years of project delays.
Weeks later, the Attorney General and Minister of Legal Affairs slapped the company and insurance provider, Assuria General (GY) Inc., with a $445M lawsuit.
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; and
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.
