Chairman of the Water and Sewerage Authority (WASA) Romney Thomas yesterday admitted it was the Inter-American Development Bank (IDB) that recommended the ex-gratia payment to the company undertaking the San Fernando waste water treatment plant and not WASA.
He was responding to claims by Opposition MP Ganga Singh who on Wednesday questioned in his budget debate contribution in Parliament why WASA’s board and its chairman awarded an “extra” ex-gratia payment of US$9 million to the company undertaking the San Fernando waste water treatment plant despite the contract for the $654 million project had no provision for additional payment.
In response to the allegations, Thomas explained yesterday that in March of 2016 the contractor terminated the contract which WASA rejected.
Thereafter, he added, the principles of the company requested a meeting with WASA’s CEO and chairman to discuss the matter.
Notwithstanding the termination of the contract, Thomas said the contractor was required to continue working.
He said the project was being funded by the IDB which was kept abreast by WASA of all that had taken place.
“It cumulated, in that, the IDB in accordance with their procedures appointed engineers to make recommendations on a way forward with the project.
“So the IDB engineer was who made the recommendation of the ex-gratia payment and the IDB agreed with that recommendation.”
Thomas said it was recommended that a payment of US$19 million be made to the contractor on an open-book basis.
However, WASA eventually agreed to pay them US$9 million, which is yet to be paid, Thomas said.
Thomas said that problem arose because of an under-pricing of the project on the part of the contractor.
“As a result of that, the contractor was experiencing financial difficulties on the project,” he said.