Commuters can look forward to the opening of several sections of the Solomon Hochoy Highway extension to Point Fortin project over the next few months.
So said chairman of the National Infrastructure Development Company (Nidco) Dr Carson Charles yesterday after confirming that he received a $1.5 billion loan to complete most of the project.
The loan, Charles said, was secured from RBC but he could not provide the interest rate.
In an interview, Charles said the loan was secured and given to Nidco last December. Saying the highway is 40 per cent complete, Charles explained that the $1.5 billion allocation would be enough to take the project until the end of the fiscal year.
By then the highway should be between 60 to 70 per cent complete, Charles said. The highway is expected to cost $7.4 billion.
Asked to account how the $1.5 billion will be spent, Charles said: “We are using it for all the expenses of the highway. We have to pay the contractor (OAS Constructora) monthly for all the work they have completed.”
However, he said, some parts of the highway would run into 2016.
“We expect to open the section at Dumfries Road and open two lanes for public use from Paria Suites to Gordineau River.
“A little later in the year we will have ready the section from St Mary’s Junction all the way to Rousillac as well as the segment between Point Fortin and the Southern Main Road. We expect to open as well the Debe Interchange to Penal,” Charles said.
However, he explained that the highway from Siparia to Fyzabad would be left for next year as approximately 30 oil wells had to be capped.
“We also have a major bridge facility at Vance River which crosses the bpTT gas corridor. We also have to lift the seawall along the creek. All of this will be done next year,”Charles said.
Asked whether he was concerned by reports that OAS had defaulted on a payment last week, Charles said: “Of course we are concerned but the difficulties faced at the OAS headquarters should not affect the building of our highway. OAS has the resources to build the project and they are being paid as they conduct work.”
More info
Last Wednesday, OAS parent company was swiftly downgraded by two of the world's leading rating agencies after the company could not pay US$16 million interest on US$400 million bonds maturing in 2021.
OAS later said it was selling assets to raise cash and more than 20 builders were forbidden to bid on new contracts with state-run Petroleo Brasileiro SA.
Police searched offices of companies, including OAS, last year amid allegations it was part of a cartel of builders that paid bribes for public contracts including work from the oil producer. (http://www.bloomberg.com/news/2015-01-09/fitch-says-brazilian-builders-w...)