Government to Terminate Kalcos Contract for Conversation Tree Project

Government to Terminate Kalcos Contract for Conversation Tree Project

Government to Terminate Kalcos Contract for Conversation Tree Project

The Guyana Government has announced its decision to terminate the multimillion-dollar contract awarded to Kalco Guyana Incorporated for the incomplete Lot 8 B of the Conversation Tree to Dennis Street project. Public Works Minister Juan Edghill confirmed today that the termination is due to the contractor’s failure to meet expectations, emphasizing the government’s commitment to timely project completion.

The termination follows a directive from President Dr. Irfaan Ali, who recently convened a meeting with representatives of ministries and agencies responsible for awarding and monitoring government contracts. During the meeting, President Ali emphasized the enforcement of penalties outlined in contracts for companies that fail to fulfill their contractual obligations.

Minister Edghill had previously expressed concerns about Kalco’s ability to complete the project during a site visit early last month. He emphasized the government’s stance against project delays and reiterated the priority of delivering goods and services to the people.

Kalco had received warnings from the government prior to the contract termination. The contract, signed in August 2022, originally set a completion deadline of November 5, 2023. The project involves the construction of a four-lane carriageway from the East Coast Highway at Conversation Tree to Delhi Street, along with additional infrastructure developments.

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Lot 8 A of the project, executed by S Jagmohan Construction and General Supplies Inc, has already been completed. However, Lot 8 B, awarded to Kalco Guyana Inc, remains incomplete. The termination of Kalco’s contract underscores the government’s commitment to holding contractors accountable for project delays and ensuring timely project delivery for the benefit of the public

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