Christie, Henry square off over JDIP

Wednesday, June 29, 2011

TRANSPORT and Works Minister Mike Henry and Contractor General Greg Christie are enmeshed in a public battle over the massive and controversial US$400-million Jamaica Development Infrastructure Programme (JDIP).

A release from the Office of the Contractor General (OCG) on Monday, again raising concern about Government's decision to award the multi-billion-dollar contract to the single contracting entity China Harbour Engineering Company (CHEC) without any competitive tender, was met with a swift retort from the Transport Minister that that office was being "manipulative and misleading".

The OCG press release that sparked this response was accompanied by a spreadsheet illustrating the list of contractors hired by the Chinese firm to date and highlighted Christie's concerns.

"One of the critical issues which is of prime concern to the OCG regarding the JDIP, is that it represents the first occasion in the history of Jamaica that a major road works rehabilitation contract of this value and magnitude has been awarded by the Government of Jamaica to a single contracting entity, CHEC, and has been so awarded without competition," the OCG said.

"Indeed, it is important that the public is made aware of the fact that the National Contracts Commission (NCC), in its letter of January 20, 2010 written to the Ministry of Transport and Works, with copy to the National Works Agency, expressly stated that it was "... concerned that a contract of this size should be entered into without competition in order to ensure that value for money was being obtained," the OCG added further.

According to the OCG, it has utilised its statutory powers under the Contractor General Act, to compel the production of information regarding the JDIP sub-contracts, and to make the information public to remedy what it describes as a "very worrying issue".

The watchdog entitity went so far as to include in its release the full particulars of the identities of the 15 local sub-contractors which have so far been engaged by CHEC to assist it in executing the JDIP, and the 49 projects valued at J$14.4 billion that have, to date, been reportedly awarded to them.

Contractor Y P Seaton & Associates Company Limited is said to have been awarded the lion's share, receiving 11 or 26.26 per cent of the contracts, valued at $3,780,971,639.

Rogers Land Development received the next largest share of eight contracts, while Asphaltic Concrete Enterprise received five.

The OCG also sent this information to the Auditor General and the chairpersons of the Public Accounts, the Public Administration and Appropriations and the Infrastructure committees of Parliament.

But Works Minister Mike Henry hit back within hours of that press release, declaring that the OCG was being disingenuous since the process of selecting CHEC for the project was well known to that office.

According to Henry, as part of the government-to-government agreement with China, the US$340-million loan from the China Exim Bank came with a pre-condition for a Chinese firm of their choice to undertake the programme.

"That information has long been conveyed to the OCG, and was even reiterated in a document that was supplied to the OCG by the National Works Agency (NWA) in late May, 2011, but was noticeably missing from a release from the OCG on the matter earlier today," Henry said.

Henry said the Jamaican Government, for its part, negotiated with the Chinese for the inclusion of local sub-contractors in the execution of the works. Having agreed, the minster said the company has been using grade one companies from the list of National Contracts Commission (NCC)-registered contractors in Jamaica.

The works minister said while the OCG's claim that the JDIP is the first road contract of this magnitude that has been awarded to a single contractor was true, there were numerous other occasions where major works have been undertaken by the Chinese in Jamaica, using the same approach. These include the construction of the Trelawny Multi-purpose Stadium, the Montego Bay Convention Centre and major housing projects in St. Elizabeth and St Ann.

"The nation's road infrastructure is now benefiting from this programme after almost 20 years of neglect in terms of rehabilitation and maintenance, and no attempt at sidetracking the programme, even with tacit support from a state agency like the OCG, should be allowed to succeed," said Henry.

"Governance is about responding to the needs of the people with a focus on delivering solutions, all within the ambit of the laws of Jamaica and the guidelines therein," said Henry.

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Christie, Henry square off over JDIP