Agriculture Feeder Road contract awarded

Tuesday, October 2, 2012 6:09 PM - St. George's, Grenada

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ST. GEORGE, GRENADA, OCTOBER 2, 2012_The Government of Grenada has awarded the contract for the Agriculture Feeder Road Project to the Consolidated Contractors Company Ltd. (CCC).

Minister of Works, Public Utilities and Physical Development, Hon. Denneth Modeste made this announcement Tuesday 2nd at a press briefing at the Tourism Conference Room Ministerial Complex.

Minister Modeste said the contracted period is eighteen months to the tune of EC$45,399,942.70.

The Minister said, “Following the completion of Agriculture Feeder Road Project Phase I in September 2009 the Government of Grenada signed a loan agreement with the Kuwait Fund for Arab Economic Development KFAED in February 2011 permitting the bidding process to proceed for Phase II.”

The Government of Grenada in an attempt to fast track the project implementation sought direct negotiations with CCC which was permitted under the Phase I Contract. Protracted negotiations between the parties broke down in March 2011 without resolving the high cost of Preliminary items proposed by CCC, said Minister Modeste.

After a request by Government to resolve the impasse, the fund agreed that the contract go to international tender. The International Bidding Process ended on July 10th 2012 with four responsive bidders.

CO Williams -EC$46,123,489.54 Consolidated Contractors Company Ltd- EC$45,399,942.70 HL Lewis - EC$36,240,749.45. Surrey Paving - EC$27,257,384.08 Engineers Estimate –EC$43,838,643.82.

He said, bids were reviewed by the consulting firm DIWI and the final report was submitted on August 31st 2012.

The Ministry of Works noted the final analyses in favor of CCC and forwarded same to the Public Tenders Board in keeping with the procurement guidelines.

The Tenders Board at its meeting on September 7th 2012 accepted the recommendation award the contract to CCC. The decision is based substantially on the recommendations of the Project Consultant as well as the Tenders Board.

It is a manifestation of governments respect for institutions and is consistent with the principles of full transparency, accountability, and a search for value-for-money in the award of this major contract.

The Government notes that the tender submitted by CCC under international tender has resulted in the drastic reduction of  the preliminary items  from 37.5 % of the contract amount during the negotiation phase to 13.4 %, a figure more in keeping with industry standards previously requested by the Government of Grenada during negotiations with CCC.

Minister Modeste says that the current construction rate per kilometer of road has also been reduced, resulting in a saving of approximately EC$3 million dollars on the contract.

The government regrets that an earlier agreement could not have been reached but in keeping with its promise to seek value for money in a transparent and accountable manner, is pleased to bring this process to an end.

The Government of Grenada looks forward to a speedy mobilization and successful completion of this project.

Chief Technical Officer Cecil Harris said work should begin in the next two months; they have at least one month to mobilize their equipment and get other logistics in place. He doesn’t consider this a challenge for the company.




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