EXPOSE HALTS $475 M HDC DEAL

THE Government’s decision to cancel a $475.8 million housing contract with a Chinese company has come after an investigation by this news site.

CounterPunchTT recently revealed that Chinese Harbour Engineering Company (CHEC) was granted the money-spinning deal despite tendering more than $200 million higher than each of three local firms. 

NH (International) Caribbean Ltd., which has carried out regional projects for more than 30 years, bid $259.6 million.

At least two other Trinidad and Tobago-owned companies tendered lower than CHEC for the construction of houses at Santa Rosa, Arima.

They are Junior Sammy Construction Ltd., at $419.22 million, and Motilal Ramhit and Sons Contracting Ltd., at $344.15 million.

NH, owned by pioneering builder Emile Elias, lodged a formal complaint over the contract with Procurement Regulator Beverly Khan.

The Housing Development Corporation (HDC) then announced it “has decided to cancel the procurement process.”

The HDC “has taken a decision not to proceed with the project at this time,” Managing Director Jayselle McFarlane said.

The local construction sector was shocked at the awarding of the contract to CHEC at such a price tag when the other bidders were not only cheaper but had built similar houses.

CounterPunchTT revealed that CHEC faced allegations in several countries of financial irregularities involving underhand payments to public officials.

A company official and an administrator of Bolivia’s road administration agency were jailed for corruption in 2022.

CHEC and associated companies were banned by the World Bank for eight years, ending in 2017, for financial impropriety in Bangladesh and other countries.

CHEC has carried out several projects in the Caribbean, as part of China’s expansionist Belt and Road Initiative (BRI).

In 2018, Prime Minister Dr. Keith Rowley became the first Caricom leader to sign onto BRI despite several countries being caught in debt traps by the programme. 

CHEC worked on the La Brea dry-docking facility.

Phoenix Park Industrial Estate, a BRI project, was commissioned last January, with gushing praise from Rowley.

Several Chinese companies have operations at the industrial park.

The project “is a symbol of the strong and blossoming relationship” between both countries, the Prime Minister said.

China is particularly interested in maritime projects in the Caribbean, in what some international experts fear could become spying and surveillance outposts.

A Chinese firm built an oversized port in Antigua-Barbuda, leading to claims that the twin-island State “has traded its sovereignty.”

There are major projects by Chinese companies in Guyana and Jamaica.

The United States Southern Command, which seeks that country’s military interests in the Caribbean, is concerned about the deepening Chinese involvement.

A SouthCom official told Newsweek magazine: “Given the breadth of investments in logistics infrastructure China has made in the Caribbean, we are concerned that China could task its state-owned enterprises and diaspora to conduct intelligence and influence operations against the US and our partners in the region for military purposes.”

Informed sources said the CHEC contract for HDC houses was a move by the Rowley administration to strengthen ties between Port of Spain and Beijing.

As for China, it was another step to boosting its presence in the Caribbean.