PARAMARIBO, Suriname (CMC) – The Inter American Development Bank (IDB) says Suriname could be in breach of a multi-million dollar contract if it chooses to implement the interim court relief in the case surrounding the infrastructure project on Van ‘t Hogerhuysstraat.

The IDB in an August 1, 2025 letter to  Public Works and Spatial Planning Minister, Stephen Tsang, the IDB representative, Adriana La Valley, said that deviating from the already awarded project could result in a claim for damages.

Judge Deborah Haakmat-Sniphout ruled that the project award to Kuldipsing Infra NV must be revoked and the project must be retendered.

According to La Valley, implementing the ruling by the judge means that the project’s financing will not proceed.

According to the IDB, the US$23 million in financing for the project, as well as the award to Kuldipsing, is stipulated in the loan agreement between Suriname and the Washington- based financial institution, subject to strict conditions. Any amendment would only be possible with the IDB’s written approval. A unilateral amendment, such as implementing the court ruling, would violate the policy of this international financing institution.

The IDB said while it understands the current situation following the court ruling, it cannot help but point to the agreements made.

In April this year, at the request of Baitali NV, the court halted the project to conduct a judicial investigation into the legality of the tender process and the final award to Kuldipsing Infra NV. Baitali NV, which had submitted the lowest bid, was excluded and in its ruling the court said that Baitali had been wrongly rejected.

It ruled that the state revoke the award to Kuldipsing and grant Baitali the opportunity to compete in a new tender round.

But the Ministry of Public Works appealed the verdict even before the new government President Jennifer Simons took office last month and following the change in government, it was decided to withdraw the appeal.

Media reports Monday said that the government risks a claim of US$10 million if it delays implementation or makes substantial changes to the infrastructure project on Van ‘t Hogerhuysstraat, which has been awarded to Kuldipsingh Infra NV.

The reports said that the situation is proving to be both politically and financially problematic for the State given the IDB’s position and the court ruling.

According to the media reports should  the government implement the court ruling, resulting in the termination of project financing, it will almost certainly lead to a claim for millions from Kuldipsingh.

The company may claim compensation for costs already incurred for materials and equipment. According to estimates, this could amount to a claim of US$10 million, which the State will have to cover.

When in opposition, the National  Democratic Party (NDP) had always opposed the contract award to Kuldipsingh, and when the new government came into office,  NDP member André Misiekaba, who was appointed acting minister of Public Works and Spatial Planning, withdrew the appeal, citing suspicions of corruption, among other things.

However, discussions with the IDB revealed no corruption, with the IDB pointing out to the government the award conditions, which are clearly stated in writing.

The IDB contends that withdrawing the awarded project could be interpreted as if it had itself complicit in corruption and in its letter to the government, the IDB stated that projects it finances are assessed not only for cost-effectiveness but also for transparency and good governance.

Suriname has committed to these principles through the loan agreement.

In its letter to Tsang, the IDB urges the government to simply proceed with the awarded project to Kuldipsingh.

This will allow construction to begin in the third quarter of this year and maintain the schedule. Furthermore, a third sub-tender for the project is in preparation, which will offer other companies the opportunity to participate in a new, open tender process.