By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Opposition’s chairman yesterday demanded that a contract to overhaul west Grand Bahama’s roads be “terminated” by the Government, adding: “I don’t believe there’s $183m worth of roadworks there.”

Dr Duane Sands, speaking out after it was revealed that a Bahamas Striping group affiliate had been awarded the work without competitive bidding, questioned to Tribune Business how Bahamians can get “value for money” for their tax dollars without the presence of rival offers from other contractors.

Arguing that the project, designed to overhaul 98 miles of road, needs to be re-bid, he asserted: “The maths does not add up. It ain’t math-ing. I don’t even believe there’s $180m worth of roads in Grand Bahama. I’m not being facetious or simple. I have driven up and down out there. Unless they are planning on paving every single inch of west Grand Bahama, I don’t see where there’s $180m worth of roadworks to be done.

“The fact this administration seems hell bent on continuing this non-transparent, no-bid contracts where the Bahamian people have no way of knowing whether they are getting value for money, what the profit margin is, what they are paying for materials and labour, it’s not unreasonable for people to believe the only reason this is being done is to hide the fact they are over-paying for a service.’

Clay Sweeting, minister of works and utilities, did not respond to Tribune Business calls and messages seeking comment before press time. Procurement data released by the Government, though, showed that the contract handed to Abaco Caribbean Holdings by ‘direct award’ came from the Ministry of Finance and not the Ministry of Works.

Michael Pintard, the Opposition’s leader, was slightly more cautious than Dr Sands as he told this newspaper there was “conflicting information” about whether the west Grand Bahama roads contract has actually been awarded. “We are hearing conflicting stories as to whether or not this is a contract that has been executed, and we would like the Prime Minister to provide the details. We are uncertain about the details,” he said.

Both Mr Pintard and Dr Sands, though, challenged whether the $183m sum would be better spent on addressing other infrastructure and public service deficiencies in Grand Bahama. They listed the need for more fire engines and fire-fighting equipment in the wake of the recent fires; ambulances; upgrades to the Rand Memorial Hospital; and repairs to the home of West Grand Bahama residents.

Several contacts, speaking on condition of anonymity, have already questioned the “direct award” method’s use in granting such a large contract to Abaco Caribbean Holdings as this signals it was never put out to tender and there was no competitive bidding as a consequence. Bahamas Striping’s website confirms that the winning bidder is its affiliate, and both share the same address at Lot 2C Abundant Life Road.

Currently overhauling some 163 miles of Eleuthera’s roads under a $100m contract, and having previously been hired by the Government to transform much of Exuma’s road network at a cost of $60m, Bahamas Striping and another of its subsidiaries, Caribbean Pavement Solutions, would appear well-qualified for the Grand Bahama work.

Several contacts pointed out that - combined - the value of the three contracts including Grand Bahama is some $343.459m, a sum that almost exactly matches the total $344.5m capital spending that the Government has budgeted for the current 2024-2025 fiscal year. And they also challenged whether the ‘direct award’ of such a large $183m contract can be justified based on the law set by the Public Procurement Act.

The last version of this Act, passed by Parliament under the Davis administration, sets out the grounds under which this procurement method can be used. These include that the contract value is less than $100,000; that no suitable bids were received in a competitive tendering process; “reasons of extreme urgency”, such as a natural disaster; and other factors that do not necessarily appear to apply to such a project.

“There’s no exigency, no emergency, no natural disaster to justify” the use of a ‘direct award’,” Dr Sands argued. “These are dollars earned from the pockets of Bahamians. We deserve to know how they arrived at this contract for $183m... We are putting down $183m on roads that don’t exist. Make that make sense. It absolutely does not make sense.

“Why is it that this is the only company [Bahamas Striping and its affiliates] that is awarded these contracts for this sum of money? It [the contract] should be terminate and the process started over; nothing less will do. This does not meet any of the criteria. It should not happen in The Bahamas. It is a decision that has been made without any justification by this administration.”

Dominic Sturrup, Bahamas Striping’s principal, declined to comment on the West Grand Bahama contract award when contacted by Tribune Business citing the “confidentiality of the contract” and directing all questions to the Government. “I can’t answer any questions,” he said. “All of our contracts are confidential. You’d have to reach out to the Government to get an answer on it.”

However, he did confirm that documents uncovered by Tribune Business are genuine. These show that IDB Invest, the arm of the Inter-American Development Bank (IDB) that finances the private sector, is exploring providing $22m in funding to Abaco Caribbean Holdings.

“IDB Invest is looking to finance approximately $22m through a working capital facility to support Abaco Caribbean Holdings, a Bahamian company, and its shareholders, the Bahamas Striping Group of Companies,” IDB Invest said.

“This financing will be directed towards the West Grand Bahama Road Improvement project, which seeks to enhance connectivity, safety and the overall travel experience across Grand Bahama. The project involves the rehabilitation of asphalt paving of 51 miles of highway and 47 miles of settlement roads, with an estimated cost of $185m.”

Other IDB documents, seen by this newspaper and giving more detail on the project, state: “These improved roadways will unlock economic opportunities, facilitate smoother transportation of goods and services, and bolster the tourism sector, which is vital for the island’s economy....

“Abaco Caribbean Holdings, founded in 2016 as a turnkey service provider, has gained experience through the planning, designing and construction of parks and community centres, and implementing smart technology systems. Most recently, with the support of other companies of Bahamas Striping, it has expanded its services into road paving and construction, land clearing and site development.

“The project consists of the reconstruction and rehabilitation of a stretch of approximately 51 miles of the Queen’s Highway, a main asphalt paved arterial road on the West End of Grand Bahama, about 47 miles of minor roads - collectors and settlement roads - various other capital and infrastructure works, and other road and infrastructure safety enhancements.”

The latter is set to include “the installation of guard rails where required; the placing of traffic signs and road striping; the adoption of traffic calming measures; the placement of reflective road studs; and the construction of sidewalks in selected areas.

“To achieve the required production of asphalt for the road pavement, the company will install a new asphalt plant, which will be located approximately at the midpoint between Eight Mile Rock and the West End, within a rural environment, without any neighbours living nearby, and its main access is by the Queen’s Highway,” the IDB Invest report added.