PR – The Democratic People’s Movement says it’s troubled by a government decision which, according to DPM, “has completely ignored’’ the procurement laws of Grenada, Carriacou and Petite Martinique.
The decision to undertake major road projects, through a “design, build and finance” model, sidelines the competitive bidding process and raises questions about compliance with the country’s public procurement framework, charged Arley Gill, DPM’s Deputy Political Leader.
The Movement is not opposed to the government improving Grenada’s roads, Gill said in an appearance on GBN’s “To The Point’’ programme.
However, DPM strongly objects to the methodology being used and the lack of publicly available information about the true cost of the road projects and the financing arrangements, Gill explained.
“What this government has embarked upon troubles us: the methodology, the process in what they have done,” Gill said. “What that has done is that it has completely ignored and is in flagrant violation of procurement laws of the country.”
Grenada’s procurement framework was established through the Public Procurement and Disposal of Public Property Act.
The procurement structure, under regulations that came into effect in 2015, is designed to provide oversight and competitive processes for major public purchases and contracts.
Gill said the traditional process provided for the ministry of infrastructure to develop the road design and invite qualified companies to tender, allowing government to compare prices, technical capacity and other factors before awarding contracts.
Under the current administration’s new design-build-finance approach, however, companies such as NAMALCO and Rayneau Construction Group finance and construct projects, with the government ultimately paying them for the work. Government has publicly described several major road packages as operating under this design, build and finance model.
Gill has questioned the financial implications of the model, noting that private financing could carry significantly higher interest costs than concessional financing available through development institutions.
“We do not know where they get the financing from. In fact, we don’t know where they get any financing from. So there’s a serious lack of transparency and accountability in all these contracts,” Gill argued.
The DPM is also concerned that established Grenadian contractors have not been given a fair opportunity to compete.
Local companies possess the engineering expertise, equipment and experience necessary to execute major road projects and should not be excluded from the process, Gill emphasized.
He further questioned the economic benefit to Grenada when foreign contractors bring in their own trucks, drivers, equipment and other resources.
“What that means is a serious expatriation of funds,” Gill said. “You ask yourself, how much money remains within the Grenadian economy?”
NAMALCO, a Trinidad-based construction company established in 1998, lists extensive regional construction experience and road-related projects among its capabilities.
Rayneau has also been awarded major road works in Grenada, including projects involving the Willis Road, Mabouya landslip and Tempe–Mt–Kumar corridor.
Gill also raised concerns about environmental assessments and potential variations when roads are designed while construction is already underway, warning that changes can increase project costs.
“We need these projects. What we have to look at is the process,’’ Gill insisted. “We have to look at whether or not we are getting value for money.”
Against this background, DPM is calling for greater disclosure of project costs, financing terms, repayment schedules, contractors’ agreements and procurement approvals, said Gill, adding that Grenadians have a right to know how much they will ultimately pay.
“Taxpayers need to know,’’ he stressed. “All we are asking are these questions. Please provide us with the answers.”
