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Stabroek News

PM defends contract awards
published: Wednesday | February 2, 2005


PATTERSON

Robert Hart, Parliamentary Reporter

DECLARING THAT his government "has taken the process of competitive tendering further than any previous administration," Prime Minister P.J. Patterson yesterday defended the award of a contract to build the new Trelawny stadium to a Chinese firm.

He was responding to criticism from Audley Shaw, Opposition spokesman on finance, who blasted the government for its failure to be consistently transparent in issuing contracts.

"It is the better system (tendering), but it doesn't mean that it always produces the best results in each and every case and there ought not be situations where exceptions arise for consideration," Mr. Patterson told Parliament. "There must be a process by which we deal with those exceptions."

A SIMILAR TREND

Mr. Shaw had pointed to the selection of the Chinese firm over the National Contracts Commission (NCC) recommended firm Bouygues for the US$23 million stadium project. He also mentioned the recent developments with the North Coast Highway project as following a similar trend.

"Is it the best deal?" Mr. Shaw asked, regarding the Trelawny stadium project. "Maybe so, but we will never know because once you leave the system of competitive tendering, what is happening is that the concept of transparency disappears."

The Gleaner reported on Monday that the French firm, Bouygues Travaux Publics, was in talks with the Government to assist in completing construction on the second section of the North Coast Highway project.

Mr. Patterson said the Government made the decision based on financial considerations. "In the case of the Greenfield (Trelawny stadium) we also have a tight timetable," the Prime Minister said. "We needed to look for financing. We have got an offer from the Chinese ... a long term loan at two per cent per annum. But the money comes with conditions."

The agreement with the Chinese was signed last night.

CONDITIONS

"We could seek to borrow the money at higher rates and allow the contract to be done in design and construction by the firm which had put in the best bid to the NCC," Mr. Patterson noted. "If we are to avail ourselves of this sum of money, a condition is that we use a Chinese firm and that we buy a stipulated amount of equipment that is of Chinese origin."

And with respect to the North Coast Highway, Mr. Patterson said that segment two of the project is running far behind schedule.

"It is in the best interest of everyone to see if we can reach an agreement with the existing contractors," the Prime minister said. "This would enable them to get help to complete the segment."

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