Statement On Road Improvement Project

Tuesday 06th, March 2012 / 09:09 Published by

Prime Minister Hubert Ingraham

As promised and in fulfilment of our duty to be transparent and accountable, I wish to make a statement on the New Providence Infrastructure Improvement Project (NPIIP).

Eighteen years ago in 1994 my Government engaged MM Dillon Consultants, a Canadian firm, to prepare a transportation development plan for New Providence. This plan formed the basis of the IDB-funded NPIIP (“the Project’).

The project was conceived in response to an imperative to transform our aged and outdated public infrastructure i.e. water mains and laterals, electric and communication conduits, poor drainage and congested road network in New Providence, an island whose population has more than doubled in the last four decades

Mott MacDonald Consultants (MM), a UK firm were appointed in 1999 for the preparation of 30% road design, bid documents, engineering and contract supervision for the project to be tendered on a design-build basis.

The objective of the program was to reduce transport costs and traffic congestion for road users by providing a more rational and efficient transport system for New Providence Island.  The objective will be met by improving and expanding the existing road network, through improved traffic flows, increased public transportation, reduced vehicular nuisances, modernizing and strengthening the institutional framework responsible for the provision of transportation services, improving road safety and alleviating the negative environmental impacts associated with the existing traffic congestion levels.

Four companies were prequalified and invited to submit bids for the project which were opened on 9 June, 2000 with the following results:

(1)    Lagan Holdings (UK)         $58.1 million
(2)    BA Black Top (Canada)        $49.9 million
(3)    Associated Asphalt(UK)        $50.9 million
(4)    Interbetton (Netherlands)        $59.1 million

During the bid evaluation it was determined that the bids submitted by Lagan and BA Blacktop did not comply with all the requirements in the Bidding Document. It was, therefore not possible to assess the adequacy of their proposals. Associated Asphalt (AA) and Interbetton on the other hand, while not fully compliant with all the requirements of the Bidding Document, provided enough information to enable an assessment of the adequacy of their proposals. The Government, therefore, agreed to negotiate with Associated Asphalt, the lower of the two responsive bids and in April 2001 awarded AA a $52.2 million lump sum contract to undertake the project. The contract contained no price escalation clause. At that time the price of oil averaged between US$20 and US$21 per barrel (today the price of oil is in excess of $100 per barrel and rising).

As required by the contract AA provided two bonds, an Advance Payment Bond of $7.6 million and a Performance Bond of $7.8 million.

The project was estimated to cost $66 million and was to be funded by a loan from the IDB in the amount of $46.2 million and with Government providing counterpart funding of $19.8 million. The components of the project included:

  • Roadway Development and Traffic Management ($50 million):  The construction and rehabilitation of 14.38 miles of roads and 9.38 miles of new roads for a total length of some 24 miles to Florida Department of Transportation standards, with a design life of 20 years.
  • Engineering Studies and Project Supervision ($5.5 million)
  • Institutional Development and Strengthening ($1.5 million):  Strengthen and Modernize the Government’s capacity to develop and implement the comprehensive surface transport policy established in the Transport Development Plan for New Providence (Dillon Consultant Engineer’s Report), which would lead to closer collaboration between Department of Public Works and Road Traffic Department.
  • environmental mitigation
  • the creation of Big Pond Park and
  • a Public Recreational area at Saunders Beach

The contracted works commenced on 2 April 2001 with a completion date of 10 February 2003, just over nine years ago.

Read the full statement (147KB PDF)

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