Palisadoes strip rehabilitation could be in trouble

The massive undertaking of the rehabilitation of the Palisadoes Strip may run into trouble if the Government does not make more money available for the project.

This was revealed at Wednesday's Public Administration and Appropriations Committee (PAAC) of Parliament as Patrick Wong, the Chief Executive Officer (CEO) of the National Works Agency (NWA), pointed out that the project did not receive sufficient budgetary allocation.

Mr. Wong said the massive project will take some $5.6 billion to complete by September 2012 as scheduled.

He said the project is now 20% complete and $1.2 billion has already been spent.

However, Mr. Wong said the $1.3 billion allocated for the project this year is not enough.

"The only problem we have, and it’s a major problem, is the allocation in the budget. Last year we got $700 million (and) this year we got $1.3 billion (but) the project is $5.6 billion and is scheduled to be completed in September 2012. It means that we will not able to certify for payment the work done by the contractor once the $2 billion is exhausted in this financial year," he said.

Mr. Wong added that if late payments are made to the contractors because of the inadequate allocation in the budget, then there will be more costs incurred, which in turn will mean an overrun in the cost of the project.

Dr. Wykham McNeil, PAAC Chairman, reacted with shock to this revelation pointing out that it needed to be brought before Parliament.

"If we do not get (an) additional $2 billion this year plus $1.6 next year, then the Government of Jamaica, the NWA is going to incur liabilities of US$25 million or about 30% of the cost of the project. The only way that money can be given is if there is an additional approval through the Parliament, which has to come through this committee. Something major like that, must be reported to the Parliament," Dr. McNeil said.

Protest over the cost to rehabilitate the Christiana by-pass

And questions were raised about the cost of the Christiana by-pass project in Manchester at Wednesday’s PAAC meeting.

The NWA's CEO said the project, which involves one kilometre of road, will cost US$8.9 million.

This elicited howls of disapproval from some members as well as the PAAC Chairman, who said the project was much too expensive.     

"When you look even at the Bogue road, which had five kilometres of four lanes and cost $2 billion, you’re looking at about $200 million per kilometre, so how is it that a kilometer of road in Christiana, with none of the traffic problems end up costing four times the amount?" Dr. McNeil asked.

Mr. Wong explained that the cost of the road work was due to the complexity of the job being undertaken.  

"If you look at the cost of the basic items in road construction, there have been dramatic increases and the Bogue road did not have the level of fill that we have to do on the Christiana development road and it did not have the (number) of bridges that we have to put in," Mr. Wong said.

The Christiana by-pass project is scheduled to be completed by the end of this year.