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JSC told of ‘colourful saga’ behind highway project - Trinidad and Tobago Newsday

MEMBERS of the Parliament's Land and Physical Infrastructure Joint Select Committee (JSC) were told on March 20 about a "colourful saga" behind the 2010-2023 Solomon Hochoy Highway extension project.

This conversation between committee members, National Infrastructure Development Company (Nidco) and Works and Transport Ministry officials included decisions taken about the project the day after the UNC-People's Partnership (PP) coalition government assumed office in May 2010, questions over the suitability of the project contractor chosen by the PP – Brazilian firm OAS Construtora – and expenditure of money related to the project during the PP's tenure.

The conversation dwelt heavily on a report on the project that Nidco submitted to the committee last year.

JSC chairman Independent Senator Deoroop Teemal asked Nidco chairman Herbert George if the word "saga" was the best way to describe matters related to the highway from 2010-2023.

George replied, "I thought the history of the project was quite colourful."

He described it as the most significant infrastructural project ever undertaken in Trinidad and Tobago.

"It started with much expectation.

"Before long, it ran into difficulties: lots of protest action that delayed execution. Then there was this international company (OAS) engaged in the execution of the project that appeared to have been carefully chosen and one that ran into financial difficulties, what you would probably call bankruptcy."

George said that company had to be removed.

"But prior to that there were two addenda that varied the execution or the proceedings and that large company, with so much promise, was there seeking to be extricated from the project We were almost facilitating it."

Contract addendum 1 agreed that the upgrade of the road section from Dumfries Road to Paria Suites would be included in the contractual scope of works.

George said this section of road was not part of the original contract.

Addendum 1 said Nidco would pay an additional $108.8 million to OAS for this part of the project.

The original cost of the project before the May 24, 2010 general election, under the PNM government, was $3.6 billion.

On March 4, 2011, the PP awarded a design-build contract to OAS for $5.2 billion, and the cost subsequently rose to $7.2 billion.

George said OAS claimed to be having difficulties doing the project and asked the government to scale it back. OAS, he continued, only wanted to be able to do parts of the project and not the entire project as it had agreed to do, in respect of its financial difficulty.

"At one time, they were talking about just tying up things, closing up and going back home (to Brazil).

"We were almost just saying...well, you know...facilitating that."

He admitted to committee members that Nidco was at a slight disadvantage, because "whereas Nidco has been a prime agent in the execution of the project, the managers who were present during the initial stages of the project are no longer present at Nidco to testify before your committee.

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