Prime Minister Dr Keith Rowley said yesterday he hoped the decision to award a $400 million dollar contract to contractor Kallco to construct the first segment of the Churchill Roosevelt Highway extension to Manzanilla will motivate other local contractors to bid for State projects.
Speaking at the sod-turning ceremony, at Cumuto, Rowley said Kallco submitted the lowest bid for the project and he believed that the company had the necessary equipment and experience to complete the job on time and with no cost overruns.
Kallco is one of the local contractors which had been criticised by the then People's National Movement as being favoured by the former People's Partnership administration.
He said six contractors had submitted tenders for the contract —four local and two foreign contractors.
Rowley said he hoped the decision to award the contract to a local contractor will motivate local contractors to tender for jobs and would be competitive and give the taxpayers value for their money. The prime minister said the tendering process to award the contract to Kallco was robust and rigid.
He said that this extension of the highway is part of Government’s plan to open up economic space in the North Eastern part of the country and it is expected to generate and foster economic activity.
Rowley said because of the harsh economic times, due to fallen oil and gas prices, the Government had to stretch its hands to do more with less.
He also warned contractors not to expect the same margin of profits as before. Under this Government it is a thing of the past, he said.
The highway extension will be built in three phases. The first phase to construct 34 km of roadway is expected to be completed in 10 months.
RALPH BANWARIE