Good Morning, Mr. Speaker.
I am pleased to provide a further update on the Short Term Stimulus Programme that was launched on December 17th, 2020 to a maximum value of BMD $13,385,000 where small to medium sized contractors were invited to participate.
Mr. Speaker, the programme was launched as there is an urgent need to provide stimulus to the local economy in order to retain and boost employment numbers in the wake of the economic downturn sparked by the COVID-19 pandemic. As a result the Ministry of Public Works compiled a list of “shovel ready” projects that are executable almost immediately. These projects are mostly infrastructure improvements and will not add further burden to government operational expenses. The project’s selection principles are to maximize the employment of the private sector while providing much-needed refreshing of neglected infrastructure.
Mr. Speaker, to ensure allocation of the stimulus funding across the participating businesses, the Ministry will maintain a register of approved contractors and awarded contracts to ensure that no one company monopolizes the project list. Once a company obtains a project, they will be rotated to the bottom of the list to allow other companies an opportunity for work. The guiding principle is to prioritize all companies that provide the most employment benefit per dollar spent while spreading the work among Bermudian owned and operated businesses.
Many of these small to medium sized businesses have never worked for government before and oftentimes the challenge is cash flow. In light of this we have arranged with the Accountant Generals Department to accelerate the payment schedule to every two weeks – noting that those who owe government money must engage in a payment plan in order to secure the work. Things are moving in the right direction, starting off a bit slowly due to lead times for materials and companies having to sort out their outstanding balances prior to award of contract.
Mr. Speaker, to date 93 out of 98 Companies have been approved and are pre- qualified to work with the Government. All 98 have been evaluated – the 5 Companies who didn’t meet the criteria have not responded to requests to submit missing mandatory documents and that option has now ended. 9 contracts have been awarded to date:
- The MDL Renovation project has been awarded to Greymayne Contracting Ltd.
- The Flatts Bridge handrail project has been awarded to Strike Force General Trucking, Excavating and Maintenance Limited. Site visit conducted this week. Awaiting lumber order which is delayed due to Covid. Aiming for start date of May 24th.
- Artemis building B Interior Work – Project has been awarded to Integro Interiors Limited. Long lead time for some materials. Beginning to mobilize the site
- Darrell’s Wharf still awaiting planning permissions. Contract awarded to Kaissa Limited. Long lead items. Start on site in 4 weeks – May 23rd.
- Elbow Beach Access – Contract awarded to Smith Hauling & Excavating. Start date May 17th.
- Artemis Building A - Loading Dock Repairs – Awarded to Next Level Development. Pre award meeting to be held. Start date TBC
- Artemis Building B – Wash-down Area – Awarded to Heart and Soul Construction. Pre award meeting to be held. Start date TBC
- New Plant Inspection Building at Botanical Gardens – Awarded to Daniels Construction. Pre award meeting to be held. Start date TBC
- Verandah repairs at Camden - Awarded to Limestone Holdings. Pre award meeting to be held. Start date TBC
There are several projects out for evaluation:
Highways fencing, Waste water section landscaping - 3 projects, Dock Maintenance work across the island, Cleaning Pembroke Canal and Roadside Vegetation Removal.
Mr. Speaker, companies who owe government funds will be garnished or a payment plan will be put in place before they are awarded contracts.
Workforce Development has reached out to the Bermuda Housing Corporation in order to facilitate the hiring of the temporary workers through the hustle truck framework. This looks like a good fit and will see WFD transferring funds to BHC to run the program on their behalf. BHC will then create MoUs with the various participating contractors to onboard the workers.
There is a great opportunity for cross Ministry collaboration between the Ministry of Labour and Public Works along with the Bermuda Housing Corporation.
The entire team at the Ministry have been working extremely hard to get this initiative up and running, ably led by consultant Project Manager, Mr. Robert Richardson who has been assigned to coordinate the work of all those involved. I would like to publicly thank them all for their efforts.
We are very pleased with the response to the Stimulus Programme thus far from both contractors and likely employees – all of whom want to get to work and help the economy improve. This project is bearing fruit and one can expect to shortly see a flurry of Stimulus activity occurring around the country.
Thank you, Mr. Speaker.