By Stabroek News January 12, 2025
The additional claim filed against the government by gas-to-energy (GtE) contractors CH4-Lindsayca is around the US$50m amount of the first claim and will bring the total sum to nearly US$100m.
This claim is also tied to soil stability and site accessibility works, Country Manager of the company Humberto Lopez said on Friday.
“Right now we are still working on the first one and then will (work on) the second one. There is two of them that was placed at the same time. It is almost the same and is related to the stability of the work and the access to the site…,” Lopez yesterday told reporters on the sidelines of a tour of the facility at Wales and following the signing of the final documents of the US$527m loan agreement with the EXIM Bank of the United States for the GtE project.
“That sand we use it to stabilize the site. So in some points we had initial site conditions that we had to reach [for ExxonMobil] so that site condition we met. That is why you hear about the sand. It was a huge amount of sand,” he said while noting that the claims are “for extra job that we had to do to prepare the land”.
Even with an arbitration decision likely soon for the first claim, Vice President Bharrat Jagdeo had in late December announced that the CH4-Lindsayca had filed additional claims to their US$50m sums.
“There have been some additional claims by CH4 and Lindsayca, particularly as they relate to the soil condition and those would have to go through the technical process to see whether they’re justified or not…,” Jagdeo said during his weekly press conference which was held at Freedom House, Robb Street.
Jagdeo added that submissions have been made by both the state and the company to arbiters and that by the end of January there could be a ruling.
“I think by the end of [next] month, they will rule on the matter. So, if the parties accept that, their claims can be settled [that is] if they accept the ruling. If the parties decide not to, then you go to full arbitration,” he said.
Project lead for the Wales, West Bank Demerara GtE project, Winston Brassington had in September made a presentation to an American Chamber of Commerce event at the Marriott Hotel and disclosed that 1.65 million cubic metres (m3) of sand had to be brought in for soil stabilisation. In addition to the sand, he said that 160,000m3 of loam and 25,000m3 of crusher run had to be used for the stabilisation exercise. This would have been at a significant cost which was not disclosed.
The government has made it clear that the adjudication process will not affect the continuation of works at the Wales, West Bank Demerara site.
Jagdeo had disclosed that the company had moved to a dispute adjudication board as it was locked in a stalemate with the Government of Guyana over the sum of US$50 million the company felt it was owed because the project site was delivered to it three months late.
This dispute and delays to parts of the project, underline the high stakes in play for the government in what will be the largest ever public sector project in the country’s history and one that is coming with the promise of a cut in power rates by 50 per cent.
Lopez yesterday said that both claims were filed around the same time but one is being dealt with first and should see a decision by next month and then they will move to resolving the other.
Meanwhile, he also stated that the company is erecting an accommodation camp on site that would host some 400 persons. “We want those people to be ready to work every day,” he said.
He added that bringing workers to the site every day was “difficult” given that they had to be on site for 6am daily and would have to cross the Demerara Harbour Bridge by at least 5:30am, before the rush hour traffic and congestion starts and it was taxing on them. And leaving in the afternoon at 6pm was another issue, as the traffic is also backed up on the West side until after 7pm or later, daily. The workers are all brought to the site by a transportation service large bus which waits until they are done to take them back across the river to the drop off site.
Currently, according to Lopez, Lindsayca CH4 has subcontracted a lot of the works for the site and the workforce is around 75% local persons.
However, of the 400 persons who will be living on site, the local percentage numbers would be reduced, as then it would be mostly technical personnel and specialists who would be coming to Guyana. He said that some of them will come from the Dominican Republic as his company has a similar project ongoing there and others from the United States.
Original link posted by Stabroek News on January 12, 2025
