Prime Minister, Dr. the Most Hon. Andrew Holness, has informed that a preferred bidder has been identified for the $45-billion Shared Prosperity through Accelerated Improvement to our Road Network (SPARK) Programme.
Dr. Holness provided an update on the critical road infrastructure project during yesterday’s (October 8) sitting of the House of Representatives.
“The Government of Jamaica is committed to ensuring that this project is executed with the utmost transparency and accountability. To that end, we embarked on the international competitive bidding process earlier this year, which saw five bidders submitting proposals for four construction packages under the SPARK project,” the Prime Minister said.
“The process was conducted in line with international best practices to ensure we attracted the best contractors from both local and international firms. Following the evaluation of the bids, one contractor emerged as the preferred bidder for all four packages,” he added.
He further noted that their technical scores were the highest and their bid pricing was competitive.
“In response to these higher-than-expected bids, the Government of Jamaica’s negotiating team… engaged in several rounds of negotiations to reduce the overall contract price. These negotiations were necessary to ensure that we are receiving the best value for money, while still achieving the scope and quality of work required. I am pleased to report that the negotiation process has been successful, resulting in a reduction of the total contract price,” he said.
Dr. Holness informed that the negotiating team included representatives from the Ministry of Economic Growth and Job Creation, the Ministry of Finance and the Public Service, the Ministry of Local Government and Community Development, the National Water Commission (NWC), and the National Works Agency.
“Additionally, negotiations regarding the water line works component of the SPARK project were also completed, with the preferred bidder and the Government of Jamaica’s negotiating team agreeing to a suitable price for the $2 billion budgeted for the water line component,” the Prime Minister said.
“The NWC will be responsible for procuring the necessary materials for all projects. This approach will allow for a more streamlined execution of the water line works and road improvements,” he said.
Responding to queries posed by Member of Parliament for Manchester North West, Mikael Phillips, regarding the selected contractor, Prime Minister Holness informed that once the procurement phase is finalised, the public will be informed of the details.
“In terms of the contracting process for the SPARK programme, we are still in the procurement phase. We wanted to just inform the nation that there is a preferred bidder, and that we have successfully negotiated with the bidder,” he said.
“We have not completed everything in that phase, and as soon as the phase is finalised, the public will be made aware of the details as to who is the contractor and what is the negotiated sum. I can say, however, that the negotiated sum is considerably lower than what the bid offers came in at,” he added.
Furthermore, he said the Government supports local contractors, noting that it is a requirement of the SPARK contract that local contractors must be used to execute the work.
“In recent days, there has been considerable debate regarding the perceived sidelining of local contractors and the potential impact on the industry. As such, I would like to clarify the role of local contractors in the SPARK Project. SPARK will be implemented islandwide and is expected to engage several local contractors as subcontractors, bringing significant benefits to the local construction industry, including job creation and skills development. However, it is important to note that the selection of these subcontractors will be made by the main contractor, in accordance with the terms and condition of the main contract,” the Prime Minister explained.
“While the Government will exercise its statutory role to ensure fair wages, labour conditions and compliance with health and safety standards, the principle of privity of contract must be respected. The contract is with the main contractor, and it is the contractor that the Government will hold accountable for the timely project delivery and quality of work,” he added.
In the meantime, he said the Government has strong confidence in the local construction industry.
“Though concerns have been raised about the performance of local contractors, I want to emphasise that the Government that I lead, has strong confidence in our local construction industry. We can always improve, but I believe that we have enough skills, competences here for our local contractors to participate effectively in the SPARK programme,” the Prime Minister said.
The SPARK programme represents one of the largest investments in Jamaica’s road and water infrastructure in recent history and its successful execution is critical to the nation’s growth and development.
The project is divided into two components.
The vital infrastructure upgrades will be fully funded by the Government, given the country’s economic improvements.
Source: JIS https://jis.gov.jm/preferred-bidder-identified-for-spark-programme/