Fip Motiall disappointed over termination of contract

President and chief executive officer of Synergy Holdings Inc Makeshwar Fip Motilall has expressed much dissatisfaction with government’s decision to terminate the US$ 15.4 million contract for the construction of the access road to the Amaila Falls Hydropower Project.

Speaking with media operatives on January 12, Motilall maintained that Synergy Holdings Inc was not behind schedule. He noted that when the contract was signed in March, 2010, there was a two month contemplation period for the design and survey of the road.

After satisfying that period, the company was then given eight months to build the road.

“We finished our design and survey in the two months and it was approved. We then went on a hold, and after that we were supposed to be given construction notice to proceed. We actually didn’t get construction notice to proceed in October, 2010.”

Motilall said that when the notice was given to them in October, 2010, the equipment was not suitable for the works to be done. He noted that he approached government informing them of the situation, and the notice for the commencement of construction was further delayed to January 11, 2011.

With the new construction date set at January 11, 2011, and in accordance with the contract, the company had eight months to construct the road, making the deadline September 11, 2011 for completion. Motilall said that from December 2010 to July 2011, the construction company had to deal with severe inclement weather conditions.

Due to the weather, Motilall said that he requested from government that the completion date be extended to December, which was approved.

“Another critical aspect that occurred between May and August of 2011 was the specified 16 ½ feet wide road. In May, the ultimate user of the road was the contractor for the hydro, China Railway. China Railway made recommendations that the road be wider and thicker. So that process started in May and final recommendations only came in August of 2011. We had another three months basically where I did not know really what we were supposed to build,” Motilall said.

According to Motilall, when the delayed periods are added up and added on to the deadline date of September 11, 2011, it would have put the completion date in April 2012.

“I am not sure what the next steps will be, but I have to protect my assets and the reputation of my company. I also feel that I’ve been underpaid for the work that we’ve done. I feel I’ve been paid 40 per cent for doing 60 per cent of the work. I am not claiming for any more money on this contract, it’s just the timing of the payments. I haven’t been able to defend our company due to a contractual agreement with the government,” the president of Synergy Holdings Inc stated.

According to Motilall, Synergy Holdings Inc has been funding the project partially for the last four to five months and have invested approximately US$ 400,000 to US$ 500,000. Motilall said that he now has to look at his legal rights under the contract.

He believes monies are owed to him for the contract.

Addressing the likely penalties that can be incurred in keeping with the contract, Motilall said that if he is behind schedule he is likely to face the loss of his performance and a US$ 10,000 per day liquidated damages for not keeping to schedule.

Motilall said now that the road contract has been terminated, it will be the hydropower project that will suffer.

He said that companies will now have to bid again, along with the entire process of commencing works.

Transport and Hydraulics Minister Robeson Benn recently announced that government would be parting ways with the company contracted to complete the Amaila Falls Hydro-Power Project. Benn said that government, through the Public Works Ministry, has terminated the contract of Synergy Holding Inc for the Construction of the Access Road and Transmission Line-Clearing Project.