A.W. SangsterMOST READERS are aware of the fact that the North Coast Highway and the Montego Bay gully project have been stalled for some time.
Both contracts are with the Korean firm of Bosung Engineering. Recently the Prime Minister is recorded as summoning the Bosung 'ginnegogs' to answer to the problems of the two projects.
I eventually found out some information on the term 'ginnegogs'. It is a term which is used in Jamaica to mean master such as a domino master, or superior and would equate to the modern equivalent of 'Don' or 'Big Shot' (Can anyone help with the word origin?).
The meeting with the ginnegogs has now taken place and the upshot is that the taxpayers will be called upon to pay up for the Government's errors in its dealings with Bosung. What were the problems with the original contract? Most can be laid squarely at the feet of the Government of Jamaica in terms of its negotiations on the tenders that were submitted. Some were the contractor's fault though careful review of the initial contract would have suggested the precautions which are now being taken with the revised deal with Bosung.
The question is who as the responsible agent of the Government of Jamaica finalised the agreements with the international agencies and Bosung in accepting the Bosung tender in the first place? The issues that need to be put on the table are:
The bid by Bosung was significantly below the cost which had been identified by the clients quantity surveyors, and engineering professionals. It has been stated that the Bosung bid was lower than expected because either they wanted to establish a 'presence' in the region or the Government of Korea would make up any shortfall. Neither of these options were firm commitments, so that the Government negotiators should have looked this so-called gift horse in the mouth; recognised it for what it was and rejected the offer.
As it is, the Jamaican taxpayer is now being asked to take up the slack to the tune of some US$10-15 million. Assuming all the above is correct then the Government negotiators could well be charged with a neglect of their fiduciary responsibility.
There have been delays in providing access to all the land for the construction of the highway. The Contractor-General's Office, which has been monitoring the project, argues however that this land acquisition would not have prevented Bosung from dealing with many aspects of infrastructure of the highway bridges, culverts, etc.
Costly mistakes
It is clear that Bosung were not geared to dealing with a Jamaican labour force and as such ran into serious problems there. The new deal suggests a partnership with a number of local firms which should help. The question has to be asked, why was this protection of our locals not done in the first place?
Payments to Bosung engineering were made directly to Korea which was having financial difficulties as a part of the Asian fall-out. The resources and support which should have been allocated to the project and which the company was being paid for the work, were in fact not allocated to the project. The project was therefore squeezed of cash and limped along. This is another area which is being corrected.
In all fairness to Dr. Peter Phillips, the Minister now responsible, who has come into the situation after the fact, he has conceded that there were costly mistakes made by the Government. His options were:
To cancel the contract with Bosung and pay a lot more for the completion of the projects or
To negotiate with Bosung to have the job completed.
He has wisely taken the latter alternative and no doubt reflected on the old Jamaican proverb, "Don't cuss alligator till you cross the stream." Most of the errors listed above have been conceded by the Minister and in fact have been accommodated in the new revised contract with Bosung. Hopes for a free lunch have been dashed. Dr. Phillips is now saying that it won't cost more than the original real cost projection and this is, to say the least, an escapist position. It is also clear that the massive number of jobs, which were projected to be provided by the new highway, were pipedreams.
A serious omission
Contact with the Office of the Contractor-General reveals that they are not yet privy (On Friday June 30) to the details of the new Bosung deal. This has to be a serious omission and Derrick Mckoy needs to ask some hard questions as to his lack of involvement in the new deal.
While on the subject of highways, it is noted that West Indies Home Contractors (Mechala Group) have completed the Palisadoes by-pass road. We were also told that the project was on time and under budget. An issue that needs to be recognised however is the fact that the Mechala costs are not the true costs of the project. The fact is that the UDC as the supervising agency had costs in the supervision and professional work associated with the project. I have so far been unable to ascertain these costs.
This example in fact raises another issue. The UDC appears to be getting a large number of contracts either to supervise or to execute projects. The question is why are these contracts not being given to the contractors of the country. The Incorporated Masterbuilders should be up in arms on this matter and should raise questions. The Contractor-General's Office also should be asking some questions. Who assigns these projects to the UDC?
A.W. Sangster is former President of the University of Technology.
