Govt to terminate Kalco’s contract for Conversation Tree project

The content originally appeared on: INews Guyana
The paving of Conversation Tree Roadway by S Jagmohan Construction and General Supplies in January

The Guyana Government is moving to terminate the multimillion dollar contract awarded to Kalco Guyana Incorporated for the incompletion of Lot 8 B of the Conversation Tree to Dennis Street project.

Public Works Minister Juan Edghill told this publication today that the contractor “did not live up to expectations” and as such, the government will not delay the project further.

The move to terminate this contract comes just days after President Dr Irfaan Ali met with representatives of ministries and agencies responsible for awarding and monitoring government contracts, and ordered that penalties outlined in a number of government contracts be enforced for companies that continue to default on their contractual obligations.

During a site visit early last month, Minister Edghill had posited that, “it is likely that Kalco will not be able to complete that project; we will have to make some decisions and that will happen before the end of today…We will not allow contractors to delay projects without consequences. Government delivery of goods and services to people is priority; it’s paramount that’s why we’re in government. We can’t keep hearing excuses; we are pushing our engineers at the Ministry… to get great work done.”

Prior to that, Kalco had faced a number of warnings from the government.

The contract was signed in August 2022 and the project was expected to be completed by November 5, 2023.

The project involves the construction of a four-lane carriageway from the East Coast Highway at Conversation Tree to Delhi Street.

It also includes a double-lane carriageway on the reserve west of Delhi Street for northbound traffic and the building of concrete revetments between the East Coast Demerara Highway and Railway Embankment.

The project was split into two lots: Lot 8 A of the project was executed by S Jagmohan Construction and General Supplies Inc, to the tune of $$1,066, 358,738, while Lot 8 B was awarded to Trinidadian company Kalco Guyana Inc, to the tune of $830,293,458.

S Jagmohan Construction and General Supplies Inc has already completed its lot.