[www.inewgsuyana.com] – The Minister of Finance Winston Jordan, has set the record straight regarding the Fedders Lloyd Memorandum of Understanding relative to the resumption of works on the construction of the Specialty Hospital.
This is after Opposition Leader Bharrat Jagdeo had labelled the engagement a “massive act of corruption” contending that Fedders Lloyd was disqualified in the initial instance.
In a statement the Ministry said that in the Public bidding done for the Specialty Hospital under the PPP/C government, four tenders were received.
Two were deemed to be rejected, leaving the remaining two – Surrendra Engineering and Fedders Lloyd Ltd. – in contention.
“In spite of the protestations of Fedders Lloyd, the PPP/C government selected Surrendra Engineering, leaving Fedders Lloyd as the second and only other bidder for the project. Surrendra’s services were eventually terminated by the previous government. Therefore, in accordance with Section 42(5) of the Procurement Act, the government can proceed to the second bidder,” the
It was noted too that the Ministry did not award a contract to Fedders Lloyd; the Ministry merely entered into a MOU with the second and, the only other qualified bidder.
“The advantages of proceeding in this manner, rather than going out for a new tender are many, including the fact that Fedders Lloyd expressed in the MOU its intention to hold its prices expressed in its original bid made some four years ago. In addition to being time consuming, a new tender will result, obviously, in price escalation due to inflation.’
It was stated that Fedders Lloyd intends to examine works already done by the previous contractor and to integrate those works within its proposed current design options, so as to lessen the burden of loss of funds already used.
“Procedurally, therefore, there is no impropriety in the method used by government in entering the MOU with Fedders Lloyd with the intention of leading to an award should the conditions stipulated in the MOU be met by Fedders Lloyd. The decision to utilize the instrument of the MOU safeguards the procurement process and seeks to optimize the use of Public Funds, in this case a loan, in the most beneficial way.”