GUYSUCO opens tenders for US$70M Skeldon Project
Chinese, Indian companies among bidders
Stabroek News
November 2, 2002
The Guyana Sugar Corporation (GUYSUCO) yesterday opened a number of bids as plans move ahead for the construction of a US$70M state-of-the-art factory at Skeldon, East Berbice.
Representatives of the companies that submitted tenders met yesterday in the boardroom of the GUYSUCO head office at Ogle, East Coast Demerara and shortly after 2 pm, watched as the seals were broken from the many boxes and suitcases that contained the bids.
The Skeldon Sugar Modernisation Project has been divided into four separate contract packages. There are two options in each package -diffusion (A) and milling (B), but the company will eventually settle on one as the processing method it wants to utilise.
SW1 involves the major civil works, the erection of the factory buildings and the equipment installation. Three companies submitted bids for this phase and they are:
China Light Industrial Corporation for Foreign Economic and Technical Cooperation (CFETC), which proposed a bid of almost US$22.6M under Option A and a little more than US$22M in the Option B. The company is also offering a 3.6% discount.
China Shanghai CFETC bid US$18.2M, but according to the project controller, Keith Williams, a cursory examination did not reveal for which option the tender was quoted.
CNTIC Trading Company Limited, another Chinese company, proposed just over US$19.8M for the first option and $19.3M for the second.
Five companies submitted bids under contract package SW2, which is for the design and supply of cane preparation and juice separation equipment in the new factory. Those competing in this phase of the project are China Light, CNTIC, Skoda TS A.S., Marubeni Corporation and Walchandnagar Industries Limited.
China Light - US$19.9M (Option A) and US$14.2M (Option B) with a discount in excess of US$1M for either option
CNTIC - US$12.2M submitted only for Option B; Skoda, a Czech company - US$12.9M (Option A) and US$12.7M (Option B); Marubeni, a Brazilian company - US$16.9M and US$14.8M (options A and B, respectively); and Walchandnagar, an Indian company - US$12.9M for option B.
Package SW3, for the design and supply of process house and ancillary services equipment, received bids from four companies, including the Indian Sugar and General Engineering Corporation (ISGEC), the National Heavy Engineering Cooperative Limited (NHECL) also of India, Marubeni and China Light.
ISGEC proposed US$22.9M for the first option and almost US$23.8M for the second; NHECL - US$18.9M and US$19M in their respective options; Marubeni - US$18.6M and US$19.1M for options A and B, respectively; and China Light - US$19.6M for the first option and almost US$21M for the second, with a discount of about US$1M.
The fourth package is for the design and supply of steam and power generation equipment, which will include boilers for steam generation as well as powerhouse equipment for the provision of electrical power. Four companies submitted bids. These are the India-based Larsen and Turbo Limited, Marubeni, China Light and Walchandnagar:
Larsen - US$23.7M and US$24.6M for the two options in their respective order; Marubeni - US$25.5M and US$26.6M (options A and B); China Light - US$18.7M for the first option and US$19M, the second, with in excess of US$1M discount being offered; and Walchandnagar - US$14.5M and US$15.6M for options A and B, respectively.
The next stage will be the evaluation of the bids before contracts can be awarded. GUYSUCO officials said once this is done, then the Skeldon Sugar Modernisation Project will take definite shape. Awarding of contracts is expected to take place early in 2003 so as to facilitate construction later in the year.
According to a release, on October 21, tenders were opened at the Ogle office for the clearing of the project site and the delivery and compaction of 160,000 tons of sand. Following evaluation of these tenders and award of contract, site preparation works, programmed for completion by April 2003, will commence as the prelude for factory construction works.
The Skeldon project is seen as an ambitious but necessary step by GUYSUCO to lower the cost of production in the face of record low prices for sugar on the world market, through the use of modern processing techniques and the expansion of productive lands in Berbice. (Kim Lucas)