Georgetown : Minister of Public Works Robeson Benn said the Government terminated the contract of Synergy Holdings US$15.4M contract.
Synergy Holdings was contracted in March 2010 by Government to construct the access road to the Amaila Falls hydropower project has failed to honour one of the terms of a completion agreement reached with Government recently on the project.
“We cannot have a contract continuing without the surety of a performance bond…that is a main issue…it’s a fatal flaw for any project,” Minister Benn said.
“This agreement included, the provision of a valid performance bond to the government of Guyana from an acceptable institution to the value of 10% of the contract price on or before January 10, 2012 for the period of the execution of the remaining works and for the defects liability period, amongst other things,” Minister Benn said.
As of December last the contractor, Synergy Holdings Inc, had completed only 40% of the works despite repeated urgings and interventions from the Project Engineer and the Consulting Firm to have the project completed. “The termination of the contract will result in the Ministry taking the following actions; application of liquated damages at the rate of US$10,000 per day from January 1 to the date of termination, seizure of contractor’s existing performance bond, seizure of contractor’s retention sum and seizing and taking ownership of all pieces of equipment and all other property used by the contractor on the Amaila Falls Access Road Project,” Minister Benn said.
Asked how much money the contractor has received to date, Minister Benn said that in respect of the payments made, the Ministry is in the process of wrapping up all the details which will be provided publicly shortly.
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