Leader of the Opposition Azruddin Mohamed is raising concerns about what he describes as troubling financial adjustments to multi-billion-dollar contracts tied to highway structures on the Corentyne.
In a statement, Mohamed said the issue becomes clearer when the documents are reviewed collectively. “When you look at these four documents together, you’re not just looking at construction paperwork, you’re looking at a financial paper trail of how a project ‘drifts’ from its original promise,” he said.
He pointed to contracts signed in August 2022 for the GY$6 billion project, noting that by the end of that year Addendum No. 1 had been executed, increasing the overall cost by more than $1 billion. “In procurement, a 5% variation is normal. A 20% increase within months of signing is a massive red flag. It suggests the original bids were either wildly inaccurate or intentionally low to win the tender, knowing that the price would be ‘rectified’ later via these addenda,” Mohamed asserted.
Mohamed also drew attention to what he described as significant changes to mobilisation advance terms under Addendum No. 2. “If you didn’t know: This is the upfront cash the government gives a contractor to buy materials and move equipment. Standard rules usually cap this at 15%. When you see an addendum specifically designed to increase this advance, it often means the contractor is cash-strapped. If the contractor goes bust or walks away, that ‘advance’ is incredibly hard for the state to recover,” he said. He referenced concerns previously flagged by the Auditor General about unrecovered advances on other projects.
According to Mohamed, as of February 2026, the structure lots remain “critically delayed.” He noted that last year President Irfaan Ali had publicly warned contractors in Region Six (East Berbice-Corentyne) about delays on bridge works and indicated that liquidated damages had not yet been imposed.
In November, President Ali sharply rebuked contractors and supervising engineers in the region over delays in major infrastructure projects, cautioning that those failing to meet deadlines could face penalties and tighter oversight. Speaking at a public engagement in New Amsterdam, the President expressed frustration over the slow pace of bridge construction along the main roadway and questioned why liquidated damages had not been enforced. He suggested that some contractors appeared unwilling or unmotivated to complete works within the agreed timelines.
Ali also said he had instructed the Ministry of Finance to suspend the awarding of new contracts to firms that had fallen behind schedule, and directed that the performance of supervising engineers be reviewed, with possible administrative action where necessary.
Against that backdrop, Mohamed argued that the government now faces limited options. “The government is now in a bind. They’ve already paid out the increased mobilisation advances seen in these documents, but the work isn’t finished. This gives the contractors leverage: if the government fires them, they lose the money already advanced,” he contended.
He further questioned the awarding of one of the contracts, stating, “And look at the contractors 👀 Kares Engineering’s history with the Kato School (major defects) makes this $3.2B award high-risk from day one.”
Broadening his criticism, Mohamed said, “Looking at multiple projects across the board, I can’t help but notice an ‘ADDENDA CULTURE’ when it comes to certain contracts and contractors. Using addenda to change financial terms after a competitive bid undermines the whole point of a fair tender. It suggests the ‘lowest bidder’ isn’t actually the cheapest in the long run.”
“Addenda culture” is a critical term used to describe a pattern where public contracts are frequently modified after being awarded, often through cost increases or changes in financial terms. While addenda are a legitimate procurement tool for justified adjustments, the phrase suggests concerns that repeated or substantial post-award changes may undermine transparency, competitive bidding, and the integrity of the original tender process.
He also referenced the ongoing US$604 million highway expansion being undertaken by Ashoka Buildcon, questioning whether the local structure contracts could become redundant. “Someone should check if the Ministry of Public Works has issued ‘Final Completion Certificates’ for these lots. If they haven’t, and the contractors are still on-site in 2026, the government is likely paying for ‘overrun’ costs on top of the $1 Billion increase you see in these documents,” Mohamed said.
The Ministry of Public Works (Guyana) has not yet publicly responded to the opposition leader’s latest claims.
