A new Guyana Embassy in Brazil is still incomplete ,three years after its initial 18-month deadline.
In 2019, the award was made in the sum of US$4.499M, equivalent to G$937.945M for the construction of the New Guyana Embassy, Ambassador’s Residence, and Diplomatic Staff Quarters in the neighbouring country. Guyana Standard understands that the engineer’s estimate was US$7.370M.
The agreement was signed on October 14, 2019, and works commenced on October 26, 2019, with completion slated for April 16, 2021 (18 months) with a defect’s liability period of six months.
The scope of works comprises the construction of a continuous reinforced concrete and structural steel complex to house a Chancery, Ambassador’s Official Residence, and Diplomats Residence, along with swimming pool, recreational areas, tennis court, grass field and other site development works including car park, ramps, security guard huts, technical/utility building and landscaping. At the end of 2022, the contractor received G$890.036M.
Contract Termination
According to documentation presented, the contract was terminated on 23 January 2023. The termination agreement, which had a list of materials on site attached, stated that the “owner” will pay the “contractor” the remaining balance of US$177,998.22 within seven days from the present termination agreement.
On February 1, 2023, the amount of US$178,283.02, equivalent to G$37.172M, was paid to the contractor, revising the total payments to US$4.458M, equivalent to G$927.208M. However, the AG’s office could not ascertain the quantities of works paid for at the time of termination, whether the advance payment was fully recovered or if liquidated damages and the provision of a Performance Bond were applicable under the contract. Additionally, the physical verification on July 19, 2024 revealed that approximately 65 percent of the permanent works on the main buildings were completed.
At the time of reporting in September 2024, the ministry had engaged an Engineering Consultancy firm to prepare bid documents for completion of the Chancery section of the complex. Bids were solicited and received from qualified contractors. An evaluation report was subsequently prepared and submitted to the National Procurement and Tender Administration Board (NPTAB) and an award was granted.
Further, the sum of $525M was allotted in 2023, for provision of buildings – Guyana Embassy in Brazil. According to the Appropriation Account, the full sum was expended. Audit checks revealed that on December 18, 2023, four payments totalling $525M were processed and on January 15, 2024, the full sum of $525M was wire transferred to the Guyana Embassy in Washington Bank Account.
Ministry’s Response
The Head of the Budget Agency indicated that Cabinet has since agreed that the Chancery would be completed. In this regard, Contractors in Brasilia, Brazil were invited to submit bids for the construction of this phase of the project.
At the time of the report the Cabinet, following a submission and recommendation from the NPTAB, had granted it’s no objection to facilitate the award of a contract.
Recommendation
The Audit Office has recommended that the Head of Budget Agency ensure that the contract document and supporting documentation is submitted for audit.
