Penn questions 1-bid road tender

The content originally appeared on: The BVI Beacon

Communications and Works Minister Kye Rymer claimed last week in the House of Assembly that his approach to repairing roads in the territory will ensure that taxpayers get good value for money.

Opposition member Marlon Penn claimed otherwise.

During an HOA meeting last Thursday, Mr. Penn asked the minister for updates on various road projects, including the government’s recent tender for 38 miles of planned roadwork across the territory.

Only one company — the St. Kitts-based Surrey Paving and Aggregate Company (Caribbean) Limited — bid on the 38-mile project, submitting a $37 million offer on Jan. 30 even though it missed the initial pre-tender meeting.

“Why was such a large project allowed to go forward with only one tenderer and not sent back out to tender, which would have afforded the people of the Virgin Islands to get value for money?” asked Mr. Penn, who is the leader of the National Democratic Party.

Mr. Rymer, however, noted that the tender has not yet been approved, and he explained why the process continued with a single bidder.

“Simply put, the process is being allowed to take this natural course to completion,” Mr. Rymer said. “I have not been advised by the Ministry of Finance of a specific clause in the regulations within the Procurement Act and regulations that speaks specifically to the cancellation of a bid if only one bid was received through an open tender process.”

Water infrastructure

Mr. Penn also asked the minister whether the 38-mile project will include the replacement of “dilapidated” water infrastructure in conjunction with road milling, resurfacing and sidewalks.

The minister answered in the negative, explaining that replacing water infrastructure will tack on another $20 million to the projected $37 million cost.

“In the absence of being granted the funds in the 2024 budget, the Ministry of Finance endeavours to secure a loan and request funding for both the water infrastructure and the road projects, just to name a few,” Mr. Rymer said. “This will enable us to carry out the work simultaneously and ensure an efficient process. Hence the reason why the water aspect is not included in the 38 miles of road project.”

The tender documents for the project, however, suggest that the roadwork contractor will in fact be responsible for some aspects of water infrastructure.

The documents require that the “finished asphalt mix and placement [carry] a lifespan of at minimum 15 years.” In December, a prospective bidder asked if this phrase meant that the successful contractor would hold liability for the water lines.

The government responded with a bid addendum stating, “The client will hold the liability on the water lines as it relates to water leakages, burst pipes that require replacement. Over the past few years, some of the older pipes are being replaced, but there still remains in some areas an aged system.”

No RDA

Last Thursday in the HOA, Mr. Penn also asked why the 38-mile project hadn’t been given to the independent Recovery and Development Agency to oversee.

Mr. Rymer replied, “It is understood that there is not sufficient technical capacity and experience within the public service, particularly in road engineering, to oversee and manage a project of this magnitude. Both the [Ministry of Communications and Works] and RDA would have to rely on external resources to provide the engineering and management services. It was best felt to initiate and implement such works through the ministry.”

Other project

Mr. Rymer provided a similar explanation when Mr. Penn asked why the RDA hadn’t been given a separate project to repair the road between Paraquita Bay and Hodges Creek.

“The request for designs to reengineer the entire road from Brandywine Bay to Trellis Bay was made to the Public Works Department,” the minister replied. “Noting that it could only be done in phases, Paraquita Bay to Hodges Creek was completed first. The pricing was also done by Public Works Department, as is the practice when the designs are completed. The [PWD] is also equipped with the engineers, the surveyors, architects, whereas the RDA would be required to outsource those roles for any projects.”

Mr. Penn pressed further.

“Why are we spending more than $2 million for [RDA] operations if we’re not [assigning the agency] projects that they were designed to execute?” he asked. “The whole point of the RDA, and the argument for the RDA, was to keep them re-established so that they execute these type of capital projects in a more efficient way.”

PWD record

He also criticised the PWD’s previous record with roadwork.

“We know that the history of the Public Works [Department] managing projects — we’ve done, if we’re honest, a urine poor job on doing it,” he said. “Is the minister’s position that the RDA is not adequately equipped to handle this type of project? That he used the ministry to do the project?”

In response, Mr. Rymer repeated the last part of his previous answer, claiming the RDA wouldn’t be able to match the efficiency and cost savings of the Ministry of Communications and Works.

Mr. Penn then asked if the minister could provide the expected cost savings to the House. The minister agreed, but did not say when he expected to do so.

Water lines

Mr. Penn also asked if the Paraquita Bay-to-Hodges Creek project includes replacing water infrastructure.

The minister replied, “Yes. Within the contract, there’s a provision to purchase an eight-inch line for the entire length of the roadworks. This will surely improve and upgrade the water infrastructure tremendously.”

Mr. Penn then asked where those pipes might be laid and who will lay them.

“There was a suggestion made to ensure that the pipes be done along the edge of the road versus in the middle of the road to ensure that we don’t have to go back and dig up the roads,” he said. “Is that part of the project now, or is that going to be considered?”

Mr. Rymer assured him that ease of maintenance was being considered.

“The team is definitely looking at those provisions to make sure that in terms of maintenance, it’s easily accessible and would maintain the longevity of the roadway once it’s completed,” he said. “Who will be doing the work? There’s a provision in there where the contractor would be purchasing the pipes. [The Water and Sewerage Department] would be assisting in terms of installation of the pipes.”

$2.3m contract

Following a bidding process, Northam Construction, a Virgin Islands company, was awarded a $2.3 million contract last October for 3,818 feet of roadwork between Hodges Creek and Paraquita Bay.

At the time, officials said the work was expected to be completed within six months.

Last Thursday, however, Mr. Rymer did not provide an estimate for when the works would start.

“We are in an evaluation or re-evaluation stage of the designs, where we encountered some challenges,” the minister told the HOA, though he didn’t elaborate further on the challenges faced.

After Mr. Penn expressed concern about traffic due to recent road closures, Mr. Rymer said more public consultation and signage will be provided in the future.