Brassington maintains no law was violated in Marriott project

Head of the Privatisation Unit and executive director of the National Industrial and Commercial Investments Limited (NICIL), Winston Brassington on Friday clarified that nowhere in the contract between Atlantic Hotel Inc (AHI) and Shanghai Construction Group (SCG) states that labour for the construction of the Marriott Hotel has to be exclusively imported.

This was in response to misinformation being peddled that as part of the company’s contract, only Chinese workers must be brought to work on the Marriott.
He explained that a clause was added to the section of the contract that speaks specifically to labour conditions. This addition stated that labour may be imported as needed; however, it must be done in accordance with the laws of Guyana. Further, both foreign as well as local workers would have to pay NIS and PAYE contributions.
Currently, most of the workers working on the Marriott project are Chinese; however, there are a number of subcontractors who employ local labour.
Two weeks ago, the private sector convened a meeting on the labour issue at which Guyana Trades Union Congress (GTUC) General Secretary Lincoln Lewis was present. The contract was reviewed and it was found that the country’s laws as it relates to this contract were not violated.
One of the sub-contractors and owner of BK International, Brian Tiwari, at that meeting, disclosed that during the process of concrete pouring, about 80 local workers were on site.
“So you do have local content and local employment, but through the subcontractors. We need to keep our eyes on the ball here; early next year, AHI will be advertising to recruit Guyanese to work in the hotel,” Brassington said.
Once this nine-storey edifice is completed; it will provide permanent employment for over 250 Guyanese.
The entertainment complex, which includes a night club, casino, restaurant and other facilities, will provide additional employment.
“We have not said that the project should employ exclusively Chinese; we encourage local employment, but we recognise that if we want the contractor to complete the job on schedule and within budget; then we cannot micro-manage on how they are building it,” Brassington explained.
The total cost of this project is US$ 58 million.
Through NICIL, government would be investing one-third of the project cost, which would amount to about US$19 million. The rest of the funding will be coming from the private sector.
An agreement has been signed with a major firm to invest US$ 8 million in the equity, at this point, however, the name of this entity cannot be disclosed because ‘due diligence’ is currently being conducted, and as such, certain confidentiality clauses have to be heeded.
Brassington said that by next month, this process should be completed and the details regarding this transaction will be made public.
Meanwhile, Republic Bank is arranging US$ 27 million in debt financing.
The Marriott Hotel Project has been a matter of great controversy for the opposition; notwithstanding the fact, that it will create hundreds of jobs, generate income, and significantly boost Guyana’s capacity to become a high-end tourist destination.
In June 2010, Marriott International Inc had announced that the 160-room hotel is on track to receive LEAD certification from the United States Green Building Council and is on track of being Marriott’s lead hotel in the Caribbean and Latin America.
It will operate under a management agreement with AHI, which is currently owned by the government of Guyana as part of a public-private partnership between government and private sector investors.
Completion and start of commercial operations of the hotel and entertainment complex is expected to commence in 2014.