The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Inter-American Development Bank yesterday finally approved the $65 million in supplementary financing for the troubled New Providence Road Improvement Project (NPRIP), noting that the estimated overall final cost to complete the construction works was in the order of $190.9 million.

The IDB noted on its website that the purpose of the additional financing was “to replenish the depleted civil works budget in order to complete the construction works on numerous road corridors throughout the urban area in Nassau”.

The loan will finance the completion of construction on some 16 corridors, additional water and sewerage mains renewal for a number of the affected corridors, and the restoration and protection of the Big Pond area “as an urban open space for the mitigation of any potential negative environmental impacts that may arise from the from the construction of new roads; and supervision and administration”.

In 2008, the Government signed a $119.9 million contract with Argentinean firm Jose Cartellone Construcciones Civiles (JCCC) to carry out the massive project.

The IDB has noted previously that the New Providence Road Improvement Project has run drastically behind schedule and over budget, acknowledging in a recent report the negative impact the extensive roadworks have had on multiple Bahamian-owned businesses amid “a prolonged recession”.

The IDB has stated it was “in the best interest” of the Government to bring the New Providence Road Improvement Project “to a quick and efficient end”, indicating that its total lending to the Bahamas with respect to the scheme might even exceed the $206 million figure previously provided by former Prime Minister Hubert Ingraham to the House of Assembly.

The final financing is worth $77 million. Based on the contractor forecast output, it is estimated that the overall final cost to complete the construction works is $190.905 million, which is also inclusive of environmental works to the Big Pond Recreational Park.

Given the expected extension of time, $5 million in additional engineering and supervision fees are estimated, which collectively aggregate to $195.905 million.

This amount, minus the $119 million in the original contract, established the financial gap of $77 million, the IDB said. The financial gap is being financed by the $65 million loan and $12 million from the Bahamian government.