Although the Urban Development Corporation of T&T (Udecott) was advised to select China Jiangsu International Corporation (CJIC) as the project contractor for the Las Alturas housing project, it was also warned to explore the low bid submitted and the labour issues the company had been experiencing at the time.
Taking the witness stand yesterday at the commission of enquiry into the structural failure of the multi-million dollar Morvant housing project at the Caribbean Court of Justice, Henry Street, Port-of-Spain, chairman of Planning Associates Ltd (PAL) Winston Riley revealed CJIC’s bid was almost 50 per cent lower than that of another competitor. Riley said CJIC’s vat inclusive bid was $67,620,000, while Hafeez Karamath Construction Limited’s bid was said to be $138,495,605.28.
Led in evidence by attorney for the commission, Pamela Elder, SC, Riley said although PAL had recommended CJIC be awarded the contract, it was based on its personal knowledge of the difficulties that CJIC was going through to obtain work permits for foreign labourers that it advised Udecott to examine the situation closely to ensure quality was assured. Riley said Udecott was urged to consider the difficulties CJIC would face if it was unable to obtain work permits for the foreign workers, as well as cost overruns and the delays which could affect the project.
At the time, Riley said the construction industry was booming and if CJIC failed to bring in its own workers, it would be forced to employ locals at a considerable cost increase. He added that it was PAL’s responsibility to warn the client of all the possible difficulties it could encounter. Despite PAL’s warnings, Udecott signed the contract with CJIC on June 30, 2004 but contractual work failed to commence until July 21, 2004, after CJIC wrote to Udecott appealing for assistance in securing the site as it was being subjected to menacing advances from residents in the area.
Refusing to use the term “gang warfare” to describe the reason for the delay in work starting, Riley said “people were coming onto the site and creating problems” for the contractor. He said Udecott later informed PAL that it would be providing security, following which a joint army and police post was set up at the site.
Expressing concern in 2002 by PAL’s inability to procure work from Udecott, Riley said he spoke with Udecott’s CEO at the time, Winston Agard, who arranged a meeting with Udecott’s executive chairman Calder Hart so it could ventilate the issue. Riley said during the meeting which took place before the general election of that year, Hart requested him to prepare several designs for possible approval.
Contacted a short while after and informed that Hart was “satisfied” with one of the designs submitted by PAL, Riley said it was informed that Udecott had decided to move ahead with construction. When the issue of copyright arose, Riley said Hart agreed to allow PAL to become more involved in the project. Utilising the sole selective tendering process, Udecott didn’t “have to go out to the market place to tender.” Sole selective tenderers are invited when their expertise is limited to a specialist nature and is required within a short time frame.
Riley said there were regulations governing the Central Tenders Board and Udecott which facilitated that process. Justification for selection is submitted for ministerial approval and must be approved by the Finance Minister. After being selected in 2002, Riley said in 2003 PAL advised Udecott that a geotechnical survey needed to be done, after which it (PAL) was ordered to engage Geotech Associates (GA) to carry out the requisite work at the site.
Stressing that PAL had played no part in the decision to construct the housing project at Lady Young Road, Morvant, Riley said GA submitted its report on March 2, 2004. Following approval by the Town and Country Planning Division (TCPD), Riley said they surpassed the 120 apartment units requested, as they had been granted approval to build up to 300 units. However, he stressed that any change in the design plan would require approval by the TCPD, who initially approved 297 units.
Conditional approvals were also obtained from the Water and Sewerage Authority, the T&T Electricity Commission and the Fire Services. Riley will continue his testimony when the hearing resumes at 9.30 am today.
AT A GLANCE
The commission of enquiry was set up to investigate “the entire process which led to the construction of the Las Alturas Towers at Lady Young Gardens, Morvant, and all other acts, matters or decisions done or undertaken incidental to and including the construction” of the project, which includes the procurement process.
Two multi-storey units of the Las Alturas housing project began falling apart after construction and the $26 million towers were earmarked for demolition.
They were part of a larger project, which was originally budgeted at $65 million and then rose to $90 million. The commission is chaired by former Justice of Appeal Mustapha Ibrahim. The other members include civil engineers, Dr Myron Wing-Sang Chin and Anthony Farrell. Attorney Laraine Lutchmedial is the secretary. They were appointed by President Anthony Carmona last December. Last September, Prime Minister Kamla Persad-Bissessar recommended an enquiry into the project after raising concerns about the two towers which had to be demolished.
Persad-Bissessar said Opposition Leader Dr Keith Rowley, who was a former housing minister under the PNM, as well as Emily Gaynor Dick-Forde, who succeeded him, have distanced themselves from blame. Rowley said though he welcomed the probe, it would be another waste of taxpayers’ dollars.