CWC appoints UK firm to manage Providence Stadium cites loss of confidence in LOC
Stabroek News
March 23, 2007
The International Cricket Council Cricket World Cup 2007 Inc (CWC) has wrested management of the Providence Stadium site for the games from the Local Organising Committee (LOC) and handed it to UK firm GL Events.
Citing its displeasure with the LOC's inability to "deliver a fully functional operating Super Eight venue in accordance with your contractual obligations", ICC CWC also refused to approve the appointments of Walter Willis as the Stadium Manager and former sport minister, Anthony Xavier as the Site Manager. In a letter directed to Sport Minister Frank Anthony and LOC CEO Karan Singh, which this newspaper has seen, ICC CWC said neither Willis nor Xavier participated in the CWC's site management programme; they failed to attend a workshop in Barbados last month and missed all seven conference calls conducted by CWC for the site management team.
CWC said the fees and expenses associated with GL Events managing the stadium are approximately US$20,000 and the expectation is that there will be additional expenses that are currently unforeseen, but which based on the experience of other LOCs are likely. The LOC would have to bear these expenses.
The strongly worded letter from Senior Legal Counsel of ICC CWC Derek Jones said the cricketing body has lost confidence in the ability of the LOC to provide proper site management for the games, which will commence on March 28. The letter was also copied to senior management of the CWC.
In a comment to Stabroek News last evening, Singh said the LOC did not agree fully with some of the observations made by the CWC. He said the LOC has replied formally to the letter, and that he did not want the contents of the letter to divert the LOC from its task. Singh said the LOC wants to work with CWC and any support at this time would be welcomed.
According to the letter, which was dispatched to the Singh last Saturday, CWC said that over the last several weeks a number of matters were brought to the LOC's attention regarding its failure to proceed satisfactory or effectively in relation to its obligations pursuant to the Host Venue Agreement (HVA). These failures amount to clear breach of contract, it said, adding that every opportunity had been afforded to Guyana to rectify the deficiencies and breaches, but it had failed to do so.
The areas involved include: completion of the accreditation centre, media centre, video board, turnstiles, power distribution, venue graphics and other critical services.
"Your failure to deal adequately with these and other areas has resulted in CWC 2007 being unable to have confidence in your ability…"
The letter said the most recent readiness checklist for the Guyana Stadium showed the extent of the problems. Stabroek News understands that some 11 areas were pointed out by CWC, which Guyana is yet to put in place.
But Singh said while there are "some hiccups", a number of the issues raised by the CWC were addressed. He said the accreditation centre was in place, but according to reports the centre is not yet operational. During a visit to the stadium last evening, Stabroek News observed workmen struggling to complete the remaining work at the site. Guyana will host six of the super eight matches at the multi-billion dollar stadium commencing from March 28 and ending on April 9.
"Cricket is due to be played in Guyana on March 28. The consequences of Guyana not being ready are enormous," Jones said in the letter. He added that given the state of things and the LOC's continuing breaches, CWC had no option but to formally invoke Clause 12.5.1 of the HVA.
Clause 12.5 states: notwithstanding the provisions of Clause 12.1.1 and without prejudice to CWC 2007 Inc's rights as set out herein, in the event of any breach (whether material or not) of the terms of this agreement by the LOC, CWC 2007 Inc shall have the right to (subject to providing appropriate notice and opportunity to the LOC to remedy the situation to intervene immediately itself, to take any action itself to allow another third party to take action which should, in the reasonable opinion of CWC 2007 Inc, have been taken by the LOC in terms of the agreement and to do so at the LOC's cost without prejudice to the CWC 2007 Inc's rights and claims to any other form of remedy, including that of damages or otherwise.
The clause states that the LOC shall be provided with a reasonable opportunity to mitigate any loss suffered or cost incurred by CWC 2007 Inc in this regard. The LOC shall take all steps, which the CWC 2007 Inc considers necessary to assist CWC 2007 Inc or another third party to take such action or to facilitate such action being taken.
"In some respects CWC 2007 Inc may take action itself and in some respects they will engage another third party to do so. Please also take this as a formal notice that we have engaged GL Events as one such third party to complete those actions, which ought to have been taken by you," CWC said in its letter.
Asked to comment on GL Events having taken over the management of the site, Singh said he was dissatisfied with this move by CWC, but he pledged the LOC's commitment to work along with the UK firm to help stage the matches.
Additionally, the CWC said that a sum of US$50,000 was due to GL Events and Guyana had so far failed to provide an acceptable insurance policy cover of $1.5M naming GL events as the insured. It is not clear whether the insurance policy is now in place, but Singh told Stabroek News last evening that Guyana has since paid the US$50,000 to GL Events.
The CWC said it has lost confidence in the ability of the LOC to provide site management for the project up to and through the tournament period. It reminded Guyana of its continuing obligations under the HVA including the obligation to assist and to facilitate the actions, which are required in order for the stadium to be functional and to function as required. The body said that it regretted the necessity for the actions it took, but it was left with no choice.