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Contracts to develop latest housing project ‘above board’ – Duguid

by Sandy Deane
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Minister of Housing Dr William Duguid insisted Thursday that the award of construction contracts under the Government’s new $250 million Home Ownership Providing Energy (HOPE) programme was transparent and above board,

The latest development, a “premium” project at Chancery Lane, Christ Church, features Preconco Limited operated by prominent businessman Mark Maloney who was awarded the contract without going through a tender process.

Preconco is to develop the Atlantic Breeze Planned LifeStyle Development project, as it’s to be called, which will feature 267 homes geared towards middle-income earners who make $4,000 and $8,000.

Maloney is also partnering with American multinational hospitality corporation Hyatt to build the first high-rise hotel and convention complex in Bridgetown, Hyatt Ziva Barbados, for which beachfront land at Bay Street was compulsorily acquired by Government.

Back in March during the Estimates hearings in Parliament, Ministry of Housing Permanent Secretary Timothy Maynard had disclosed that Preconco was among those awarded construction contracts without being put to tender.

Maynard said the award was following Rule 239 of the Financial Management And Audit (Financial) Rules, which makes provision for ministers to award contracts for capital projects without going through a tendering process.

The rule states: “Cabinet may authorise services or supplies to be procured in a manner other than by invitation to tender where it is of the view that the required services or supplies are (a) of a specialised nature; (b) not normally available in Barbados; and (c) required as a matter of urgency.”

Amid public discussion on social media and radio about the project, Dr Duguid took to Voice of Barbados radio on Thursday to defend the move.

He made clear the Government’s intention to urgently put people back to work in light of the severe contraction of the economy, an estimated loss of over two billion dollars from the impact of the COVID-19 pandemic.

“Putting people to work is absolutely urgent at this time,” he said. “We have to put our people back to work and if I can find projects on the ground getting people working, be it the carpenters, the masons, be it the landscapers we have to get people working.”

Dr Duguid explained that 18 contractors had submitted expressions of interest in the HOPE Project and after a “thorough evaluation”, 15 were selected and all
would get the opportunity to be part of the project.

He told VOB: “The 15 are directed to the HOPE Direct project which is the one at Lancaster and the HOPE Direct company will be incorporating them into being able to build houses for the Hope Direct section.

“The other three who showed a definite balance sheet ability to carry a project and design a project on their own… those three will be working at Chancery Lane.

“The next one I am looking at is Lower Burney and then after Lower Burney, we are looking at St Lucy or Christ Church – Searles.”

The HOPE housing programme offers a one-stop-shop for would-be homeowners, including mortgage financing, attorney services and house insurance at low rates.

The projects are divided by income level: HOPE Basic for applicants earning up to $2,000, HOPE Direct between $2,000 and $4,000 and HOPE Premium for between $4,000 and $8,000.

Back in March, the Government broke ground at Vespera Gardens, Landcaster, St James for the first 32 of the planned 165 houses there.

Commenting on the development on Thursday, the Democratic Labour Party challenged the minister to provide answers on the HOPE project.

Shadow spokesman on housing Ricardo Harrison said in a statement: ”Much fanfare, style, and optics were on show at the Housing Fair at Lancaster/Deans Town where ordinary Barbadians were promised land but were suddenly, and without a valid explanation, told that only houses will be built and that house spots are no longer available.

“What are the names of the contractors assigned to these projects? What was the tendering process and has it been completed? What are the expected building costs attached to these projects at Kings Village/Whitepark Road and Lancaster?

“How will these units/ houses be disbursed? Via rent to own or outright purchase? Has the development at Lancaster/Deans Town been offered to the upper middle-class, or will they still become available to the average working-class Barbadian?”
(sandydeane@barbadostoday.bb)

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