New asphalt plant to start operations on April 6 under new management

– stakeholders to benefit from competitive prices

– after sales arrangement to be instituted

The Government’s new Eco 2000 Batch Mix Asphalt Plant at Garden of Eden is set to start operations on April 6 with competitive prices that are expected to find favour among builders, contractors and other stakeholders.  

Minister of Public Works, Hon. Bishop Juan Edghill, who toured the facility on Friday, said this would have a positive impact on development projects.

“We are not going to be putting private sector people out of business, but we want to ensure that we are part of the competition, if not the gold standard in terms of setting the price on the market because once we are able to economically reduce the cost of production of asphalt, it means the cost of a road would go down,” he told DPI.

To this end, the Minister added that he intends to ensure the plant is properly positioned for after sales service.

“My understanding is it was not adequately addressed in the contract which was entered into by the APNU/AFC. So, we have to now get that after sales service arrangement in place because should something happen, we don’t want to stall it.”

Additionally, Minister Edghill said capacity-building opportunities would be available to numerous people so that there are seamless operations at the asphalt plant.

“I have instructed today that we have a wider pool of persons to be trained and equipped for the management of the plant. Nobody should have a monopoly or leverage the company by their skill and hold us to ransom. We must have multiple persons capable of doing the same thing.”

It was also disclosed that the plant would no longer fall under the management of the Demerara Harbour Bridge Corporation (DHBC). Instead, it will have an independent managerial team with the oversight of the DHBC Board of Directors.

Minister Edghill noted that this decision was made following a recommendation from an audit of the old asphalt plant, which flagged the facility for its lack of management controls, among other irregularities.

Meanwhile, Chairman of the Board, Mr. Ravie Ramcharitar, who also toured the facility, said the environmentally friendly plant will produce 160 metric tonnes of asphalt per hour, more than triple the amount the old plant produced in that time.

Its mobile unit is set to produce asphalt at 10 metric tonnes per hour. The plant is also capable of simultaneously making three formulae of asphalt, against two formulae that are typically produced in Guyana.

“This plant is supposed to deliver more efficiency in the production and usage of materials and that ought to bring some cost savings,” he said, even as he maintained that a thorough evaluation will be done once the plant is fully operational.

Some $590 million was spent on the plant and the Chairman said an additional $60 million needs to be expended to finance an office, laboratory and other facilities to enhance the plant’s operations.

Since taking office, the PPP/C Administration discovered that the asphalt plant lacked the requisite software to function, rending it inoperable though it was installed two years ago. Consultants and sub-contractors were subsequently brought in from Germany and Mexico respectively, to bring the facility up to par as the Government works to ensure value for taxpayers’ money.