ALREADY saddled with a mounting debt burden, the Education Facilities Company Ltd (EFCL) has had $17 million added to its balance sheet as owing to a local contractor.
On Monday, Justice Frank Seepersad signed off on an order compelling EFCL to pay NH International $14,074,648.43 plus interest of $3,898,908.45 as outstanding payment for work done on the Parvati Girls’ Hindu College in 2013.
NH International (Caribbean) Ltd (NHIC) filed a claim in the High Court in 2021 against EFCL after the state-owned special purpose company failed to pay the outstanding money. EFCL did not defend the claim and it was not represented by an attorney in court on Monday. As a result, judgment was granted in default.
In its claim, NH International said it entered into a contract with EFCL in 2013 to construct the high school at a cost of $127.5 million.
The contractor began work and interim payments were made until May 2018, when the parties agreed to terminate the contract.
The claim said the termination agreement expressly implied that EFCL would pay NHIC, immediately on release of the funds by the Education Ministry, the sum of $6.8 million, VAT inclusive, and $5.5 million held in retention, plus VAT of $693,467.12 on that amount.
It was also agreed that the parties would seek to reach an agreement on the further sums owed to NHIC no later than September 30, 2018, and if the debt, or any of the agreed sums, were not paid, then finance charges would accrue until payment.
NHIC said in May 2018, the parties agreed t $9.6 million and a payment certificate was prepared, leaving a remaining $578,951.90.
A tax invoice was presented to EFCL and in October that year, it presented a draft of the final debt showing claims for suspension costs and materials on site.
The final amount showed $4,046,997.07 still owing to NHIC. The claim said NHIC agreed to the figure and by January 2020, EFCL supplied it with an updated statement showing the principal sums owed for several projects, including those relating to the Princes Town high school, admitting to an aggregate of $14 million due on the project.
The lawsuit said NHIC confirmed the figure, but, in breach of the termination agreement, EFCL has failed to pay.
It said in August 2021, NHIC wrote to EFCL demanding payment and on two occasions the special-purpose company asked for an extension.
Since then, NHIC said there had been no substantive response from EFCL before its claim was filed, which was signed off by its executive chairman, Emile Elias.
In addition to the sums agreed to by the court, EFCL will also have to pay additional interest from Monday’s date until it satisfies the judgment debt.
In 2020, the Parvati Girls’ Hindu College was said to have been 80-90 per cent completed in 2015. However, it remains incomplete.
NHIC was represented in court by attorneys Joan Byrne and Jason Mootoo.
In November 2021, Newsday was told the company's future was being carefully considered, given the challenges it has been facing to pay its debts to contractors and pay s
