The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

SEVERAL PLP Members of Parliament yesterday revealed startling conclusions of reports that pinpointed the inefficiencies of the New Providence Infrastructure Improvement Project.

The revelations were made as Members sought to agree on a resolution that would seek to borrow $77 million from the Inter American Development Bank (IDB) to complete the road works.

Despite former Works Minister Neko Grant’s claims that the over-budgeted initiative was the result of unforeseen challenges that included much needed repairs to leaky water and sewage pipes, State Finance Minister Michael Halkitis presented information from a report submitted to the IDB to disagree. The report was drafted on February 21, 2012.

“In this table there is a line that says water and sewage contingency and next to that there is a zero,” Mr Halkitis said.

Another report from the Public Accounts Committee further outlined correspondence between the Ministry of Finance and the Works Ministry with suggestions to curb the cost to taxpayers. According to Financial Services Minister Ryan Pinder, the advice was not taken or enacted.

“The Ministry of Works,” Mr Pinder said, “approached the Ministry of Finance to suggest that maybe there should be a hedge on the oil purchase. The testimony of the Public Accounts Committee was that in September of 2010 this proposition was put to the Ministry of Finance and they made the decision that it was too expensive.

“The Public Accounts Committee then made the request of the Ministry of Finance on the question of the hedge that could have saved the Bahamian people tens of millions of dollars on the escalation of the price of oil.

“The Ministry of Finance in November 2011 responded on the advice of the government’s project engineer. It was determined that it would be more beneficial to the government in the short run to adjust the formula used to calculate the level of escalation as opposed to the purchase of the hedge.”

However, there are no records that the Ingraham administration approached Jose Cartellone Construcciones Civiles to adjust that formula, Mr Pinder said.

He added that recommendations made by utility companies to the government were ignored. As a result, the roads will in the future be dug up to accommodate their works.

A government sanctioned IDB investigation, said Renward Wells Parliamentary Works Secretary, showed that the road works contract did not contain sufficient guidelines for the project to run smoothly. The report was written on December 30, 2011.

“The 2008 contract signed between the government of the Bahamas and the contracting firm Jose Cartellone Construcciones Civiles,” he said, “did not contain sufficient conditions, stipulations, mid-project milestones, meaning you should have stuff done by this particular time in this project, (a) time line leverage which means if you don’t get it done at this particular time it will cost you (or) safeguards meaning if something untoward happens in the project, the Bahamas Government doesn’t pay for it.”

The project, which sought to completely face lift 15.7 miles of road in Nassau, has been heavily criticised for its more than $100 million in cost overruns and the lengthy time it has taken to reach completion. A month end deadline has been set for the work’s completion.

The House will meet next Wednesday – October 24.