Fip Motilall's Amaila Falls access road contract quashed

Government on Thursday announced that it has terminated the US$15.4M contract held by Fip Motilall for the construction of the Amaila Falls access road and transmission line clearing project.

Works minister Robeson Benn made the announcement at a news briefing saying the action was due to the repeated delays in completing the project among other things.

"As of December 2011 the Contractor, Synergy Holdings Inc, had completed only 40 percent of the works despite repeated urgings and interventions from the Project Engineer and the Consulting Firm to have the project completed," Benn said.

As a result of the termination, Benn said the government will be applying for the liquidated damages at the rate of US$10,000 per day from January 1 to the date of termination; seaizing the Contractor's existing performance bond (10 percent of contract price), the retention sum and all equipment and property used on the Amaila Access Road project.

Benn added that the ministry will be taking steps to complete the remaining works.

When asked how much money had already been advanced to Motilall the minister said the figure is still to be tabulated.

"We will refine all the details in respect of the payments made and provide that publicly in a few days time. There is a meeting this afternoon with the Permanent Secretary, the consulting oversight engineers to the project to start tidying up those things and more particularly to put the arrangements in place so that the ministry can take possession of the worksites and the assets of the project," he stated.  

Benn refused to be drawn into an "I-told-you-so" situation over the contracting of Synergy Holdings Inc. to undertake the project. Motilall's credentials had been under scrutiny in the media since his company got the contract in 2010.