June 27 ,2021
-key pre-bid meeting set for tomorrow
With a rigid two-year construction completion date among the over 250 technical and financial questions raised by pre-qualified bidders for the New Demerara River Bridge (NDRB) project, the Ministry of Public Works will tomorrow morning host a pre-bid meeting to iron out the issues, ahead of the August 3 deadline for bid submissions.
“Since the bid documents were released, we have received about 275 questions from the various short-listed bidders… a pre-bid meeting will be held at 8 am on Monday, 28 June [2021] with all nine of the bidders who are from various parts of the world and notice has gone out to this effect,” Minister of Public Works Juan Edghill told the Sunday Stabroek when contacted for an update.
The bidding document, seen by the Sunday Stabroek, specifies the criteria required for making a bid on the project that stipulates that bidders present proposals for a Design, Build and Finance (DBF) option, or alternatively, Design, Build, Finance, Operate and Maintain (DBFOM).
The Scope of Works included in the design/ build contract includes the complete design and construction of a two-lane dual carriageway (4 lane), hybrid cable-stayed centre span bridge with concrete box/T- beam girder approach bridge structures and must include bridge collision protection, navigation span to accommodate Handymax vessel navigation aids, lighting, signage and all other ancillary works, an access road with a minimum of 50 meters up to abutments, toll-collection buildings and ancillary buildings on the West Bank of the Demerara River.
This newspaper understands that among the myriad concerns raised was that the PPP/C government wants the bridge to be completed in 24 months – a mega infrastructural project that requires geotechnical studies after the contract is awarded. “The Work Services Group of the Ministry of Public Works on behalf of the Government of Guyana (hereinafter referred to as “The Employer”) wishes to receive Bids for design, construction, financing &/ operation and maintenance of the New Demerara River Bridge. The successful Bidder will be expected to complete the Works within twenty-four (24) months from the date of commencement of the Works,” the invitation for bids states.
On the financial side, and tied to the 24-month deadline, is a clause where defaulters would have to pay US$25,000 ($5M) for each day past the deadline.
In addition, bidders, according to sources, have expressed concern that the DBFOM model puts most western companies at a disadvantage and favours the Chinese contenders since the former would not want to be saddled with operating and maintaining a bridge. “Capital cost increased if completion is projected to take beyond 2 years—imputed penalties; [US$25,000.00] per day,” the document states.
Chinese companies dominate the shortlisted pre-qualified bidders and constitute seven of the nine companies. They are: China State Construction Eng. Corp (China), China Geizhouba Group Co. Ltd (China), JV-China Railway International Group Co. Ltd, China Railway Major Bridge Eng. Group Co. Ltd, Reconnaissance & Design Inst. Co. Ltd (China), JV-China Road & Bridge Corp, Peutes y Calzadas Infrastructuras SLU (China and Spain) and JV-OECI S.A. The other two companies are Odebrecht Engenharia E. Construcao S. A. OEC and the Dutch Ballast Needam Infra Suriname B.V.
Another concern raised was about government’s hands-off stance in assisting to source financing of the loan, as the successful bidder is responsible for sourcing the entire financing for the project. “That could mean higher interest rates,” the source said.
The contract, however, gives a commitment from this country where government creates a Private Company with a full or partial guarantee from GOG.
Linkage
One source told this newspaper that the timeframe given was “almost impossible” given that the contractor will not only have to allocate a period to undertake their own geo-technical studies but be saddled with possible setbacks from Guyana’s rainy seasons and “now unpredictable weather patterns,” among other issues. Rainy seasons in Guyana are usually twice annually; during the December and January months and May and June period.
Another questioned the timing and possible linkage to general elections, positing that the two-year period was “absolutely impossible and politically-driven in time for the next elections.”
And under Section 2.2, which deals with the Geotechnical Report, the invitation makes clear that “The contractor shall provide a geotechnical report which will contain all geotechnical data gathered by the Contractor as a result of investigations for the Works and information of relevance to the maintenance of the Works. Of importance are the structure foundations: records, effectiveness and problems of soil, sea and ground water conditions encountered, including temporary works, pile logs, pile tests, and other relevant test details. Settlement records with dates of each major stage, settlement control stations, as-built foundation dimensions, etc.”
It would mean that the contractor bidding would have no idea of how deep foundations for the structure would be required and this can influence unnecessary approximations. This is so because the contractor might bid high enough to cater for very deep depths but in that instance government would end up overpaying if the depth is actually shallower; thus requiring lower costs.
Requirements for the Detailed Design say that the process undertaken by the contractor shall involve the preparation of detailed working drawings, project specifications and the appropriate documentation for construction purposes.
“The Detailed Design of the NDRB Project shall include, but will not be limited to, the following: (a) Design Base Statement, (b) All working drawings, schedules and designs required for the Construction Works in accordance with the applicable standards and codes of procedure listed herein, (c) Project specifications and other provisions required for the Construction Works, (d) Design changes to the drawings, to comply with the Engineering Requirements or as agreed by the Employer, (e) A detailed geotechnical report, (f) A detailed topographical survey report, (g) Hydrology, hydraulic and drainage design report, (h) A detailed material report, (i) Safety Audit report (j) All approval requirements of other relevant authorities shall be adhered to,” the document notes.
Local content
Also listed in the document was the importance of local content participation and that the current local content legislation being worked on would be the overarching guide for the contract in this area.
It points out that local content was not limited to only employees but in the Schedule of Prices, bidders have to give the required details and a breakdown of their prices and “shall include estimated dollar values of local content in their Price Proposals.”
“Pursuant to Clause 6.3.1(ix), The Employer shall further carry out a detailed evaluation of the Technical Proposals to determine the inclusion of Local Content during the project stages, specifically construction. Local content considerations shall be governed by national policy (Draft Local Content Policy for the Development of Guyana’s Petroleum Economy – revised Draft, February 2021), regulation and legislation, where applicable, and shall be assessed based on the sum of the inputs of local goods and services, including employment, capacity building, procurement activities, competitive participation in the project life cycle.”
“Local content shall therefore be assessed primarily on the Bidders’ description of local participation as follows: Methods and areas for the promoting of localization of materials and services; creation of business opportunities and employment of Guyanese/Locals in the project development and execution stages; description of Capacity Building and Technology transfer methodologies to be applied in the value chain,” it added.
The bidding document says that “local Content must be evidenced during the project stages, specifically construction. Local Content considerations shall be governed by national policy (Draft Local Content Policy for the Development of Guyana’s Petroleum Economy – revised Draft, February 2021), regulation and legislation, where applicable, and shall be assessed based on the sum of the inputs of local goods and services, including employment, capacity building, procurement activities, competitive participation in the project life cycle.”
Failure by the winning bidder to adhere to local content commitments during the subsequent construction and operational phases, will be subject to financial penalties, they are warned. “Such penalties will be issued in a subsequent addendum and will be included in the Contract,” the document outlines.
But a reward is given for more than the minimum required local content since the price of the project would see a discount of five percent, if local content exceeds a certain percentage of project costs.
Mangroves
While mangroves will have to be removed for the project execution, the document points out that the contractor has obligations for replanting as they must “Arrange for removal of mangrove trees on the alignment and replanting elsewhere as instructed by the Employer’s representative” and “Replant of mangroves and natural vegetation.”
Last September, the government had advertised for EoIs for the prequalification process with available financing options. The notice for the EoIs explained that the Ministry wished to embark on the construction of a new four-lane, high-span fixed bridge in the vicinity of the current location and which terminates at Nandy Park on the East Bank of Demerara. “The new design of the Demerara Harbour Bridge will not require opening or retraction to allow for maritime traffic and will be built with a life span of at least 50 years,” it noted. It is from that list that the current firms were shortlisted.
President Irfaan Ali has said that the new bridge would be a very high one standing at a minimum 50 meters or as high as or higher than the Marriott Hotel, to facilitate clearance for marine vessels and that he wants it completed soonest to especially ease the congestion that occurs daily on the East Bank of Demerara Public Road.