More questions now over Surendra’s $800M drainage pumps

- local firm supplied engines - official orders sign showing costs to be hidden

Three years ago, in May 2011, Guyana signed a US$4M deal with India-based Surendra Engineering for the delivery of 14 drainage pumps– eight fixed and six mobiles. The contract was shrouded in controversy from the very start as Surendra, a company with no history in pumps, was now involved. Surendra itself had been the contractor in the US$12.5M Enmore Sugar Packaging plant a few years ago so the award of the contract was indeed a surprise. At the signing, the then Minister of Agriculture, Robert Persaud, reportedly insisted that the bidding process was conducted in keeping with international standards. He said, then, that since the financing was via a line of credit from India, one of the stipulations included allowing Indian companies to also have an opportunity to bid. Surendra was expected to provide training and technical support. The engines themselves, Persaud had said in May 2011, would have had the capacity to discharge up to 200 cubic meters of water per second. This was significant as the biggest pumps that Guyana had then were of 150 cubic meters per second capacity, Persaud explained. However, it became clear that Surendra was running into trouble. There were several months of delays with some of the pumps only delivered last year. And by pumps, Guyana was thinking that it was the complete unit, inclusive of engine, gear drive and pumps themselves. Guyana was spending another $1B to build the pump stations to facilitate the fixed pumps. It was only when Minister of Agriculture, Dr. Leslie Ramsammy, commissioned one of the fixed mobile pumps at Patentia, West Bank Demerara, a few weeks ago that it was found that Surendra had shopped around for various components for that pump, sometimes using local suppliers. The gear drive was purchased or manufactured from DE’RAN Gear Inc, a company from Lubrock, Texas. The engine at Patentia was from the well known tractor maker, John Deere. A prominent engine dealer in Guyana had supplied that engine, Kaieteur News was told. It was also learnt that the facilities to house the pump and other civil works at Patentia went over budget to cost $265M. That contract had been awarded to Harrichand Tulsi. Shortly before the Patentia commissioning, President Donald Ramotar also commissioned the Rose Hall Town pump station, in East Berbice area. The engine there had a tag that said it was from Cummins India Limited. Suspicious A few miles away at Vriendschap, East Canje, a new pump station had also been completed. It was located next to another pump station belonging to the Guyana Sugar Corporation (GuySuCo). The sign, which indicated that H. Nauth and Sons is the contractor, had been taken down about two weeks ago and hidden in the GuySuCo compound on the orders of an Agri Ministry official whose name was given as “Griffin”. However, workers there wanted nothing to do with it, suspecting something foul and instead threw it in the yard where it was lying in plain sight. The contract for the pump station at the East Canje location was for $194M with the consulting engineer being CEMCO Inc. The engine was purchased from Doosan, again reportedly from a local supplier. The gear drive, like the Patentia one, was from DE’RAN Gear. In the backdam of Mibikuri, Black Bush Polder, the engine was one that bore the tag of Cummins India Limited. As Government had never officially released the contract with Surendra, it was unclear what exactly the firm was contracted to do. In March, Agriculture Minister, Dr. Ramsammy, facing questions over the pumps, defended the contract saying in the Guyana Chronicle that it was awarded “in the appropriate manner” through competitive bidding and approval by the National Procurement and Tender Administration Board. Can’t Accept The Minister said that as it relates to the eight fixed-site pumps, installations have been completed at the Canje and Rose Hall locations in Region Six (East Berbice/Corentyne). He explained that due to a lack of resources, there was a delay in the construction of pump stations to house the remaining fixed-site ones. Pump stations are also being constructed at Enterprise, East Coast Demerara, Windsor Forest and in the La Grange area, West Demerara. Facilities are also to be built at Eversham, Number 66, and Number 43 on the Corentyne Coast, East Berbice. Defending the delays, Ramsammy said that the Ministry had requested the supplier to have the remaining components for the pumps delivered when the stations have been constructed. “What we have done is said to them that, rather than have them sitting some place, the other parts would be best delivered when we are ready for them. “I explained, time and time again, that we were not ready to accept the equipment when it was ready. It was supposed to be last year but the Ministry was not in a position to accept all of the fixed site pumps,” he stated. Dr Ramsammy said that the contract, undeniably, represents value for money, in that the equipment are expensive and the quality standard. As of now, Government is saying that all the pumps- 14- are in the country. However, Kaieteur News has been unable to ascertain this. Together with the assets of the Guyana Sugar Corporation, the country would be able to boast a capacity of almost 100 pumps, both fixed and mobile. While the Government has said that the pumps being supplied were capable of delivering 200 cubic meters of water per second, by its very admission, Government said that some of pumps supplied were only capable of 120 cubic meters of water per second.