The battle is on for what is considered National Quarries Company Ltd's (NQ) "gold mine," the Scott's Quarry in Blanchisseuse, which has an estimated $1 billion in reserves. At least one contractor–Jusamco Pavers Ltd, headed by Junior Sammy–wrote to former NQ chairman Mitra Ramkhelawan on August 2, expressing an interest in operating the quarry at Verdant Vale, and asking to be "favoured" in NQ's renewal process.
Sammy's letter was copied to Energy Minister Kevin Ramnarine and NQ's chief executive officer (CEO) Sandra Fernandez, who was suspended by Ramkhelawan last month. On October 25, Ramkhelawan was dismissed from NQ by Finance Minister Larry Howai for alleged mismanagement. Up to Thursday, Cabinet could not decide on a new chairman and directors for NQ.
Two other contractors–Super Industries Services (SIS) and Raldon Construction Ltd, part of Gopaul and Company Ltd, are eyeing NQ, as Malaysian-based Sunway Construction (Caribbean) Ltd's fiveyear contract ended on October 14, 2013. Krishna Lalla heads SIS, while Donald Gopaul is the CEO of Gopaul and Company Ltd trucking division.
NQ has not renewed Sunway's contract. Sammy wrote in his letter to Ramkhelawan: "I am humbly requesting that my company be favoured in your renewal process, as I believe with our 30- plus years in the quarry industry, we have the experience, technological expertise, mechanical and transport equipment and excellent knowledge to further develop and continue the smooth operation of this quarry."
Sammy wrote the letter days after NQ had publicly invited two tenders to provide services for crushing and screening equipment at Scott's Quarry.On August 19, Ramkhelawan replied to Sammy indicating that he had received the letter. In that letter he also stated that two tenders were published for anyone interested in providing services for crushing and screening equipment at Scott's Quarry.
"Two tenders were published, one for the supply, delivery, installation and commissioning of one primary screening and crushing unit and other for one rotary scrubber unit," Ramkhelawan wrote.Ramkhelawan's letter stated that the first tender was advertised on June 23, with two extensions–the first being July 25, the second on August 7.The tenders closed on August 16.
Additionally, Ramkhelawan stated that an advertisement was placed in the daily newspaper on August 7, 2013 for the "rental of crushing/screening equipment and you may submit the equipment that you have available as per instructions on the company's Web site."
Ramkhelawan also thanked Sammy for his interest in Scott's Quarry.Sammy has been the recipient of millions of dollars in contracts under the People's National Movement, the United National Congress and the People's Partnership.
�2 Sammy's Multilift Services Ltd, a subsidiary of Junior Sammy Contractors was paid $6.8 million for retrieving a $2.7 million water tender after it ran over a cliff in Blanchisseuse in June 2013.
�2 Junior Sammy Contractors was awarded a $162 million contract for the completion of renovation works at Crown Point International Airport, Tobago, in 2010.
Battle for control
With Sunway now out of the picture, an NQ source said, battle for control of the state-owned quarry is on.But two government ministers have been in a tussle as to who should get operatorship.Each minister has his own choice as to who should rule the roost at NQ–one favours former chairman of the Sangre Grande Regional Corporation Keshwar Maharaj, while the other minister has selected a senior Cepep official.
Situated on 160 acres of mountain, Scott's Quarry has reserves in excess of $1 billion."The reserves can last the next 40 years," a NQ source said.The operatorship of the quarry could be worth in excess of $125 million a year."That is like operating a gold mine. Whoever lands operatorship of this quarry will rake in millions of dollars. That's why the quarry is highly sought after. It would be lucrative and highly valued."
The source said from now until the 2015 general election, as construction and highway projects intensify, millions of tons of aggregate will be in demand.One project that requires approximately 1.4 million tons of aggregate is the $7.2 billion San Fernando to Point Fortin Highway, which is under construction.Other projects involve the $100 million Valencia bypass and road repair programmes.
In 2014 at the Kay Donna Cinema, an overpass will be constructed at the intersection of the Churchill-Roosevelt Highway and Southern Main Road, while an overpass between the Lady Young Road and the Priority Bus Route is said to be in its early stage of evaluation.
NQ pushes for crushing plant
A March 14, 2013, letter sent to Ramnarine by Ramkhelawan showed the estimated limestone reserves at Scott's Quarry was 50,290,219.50 cubic yards.Limestone is used as aggregate in the construction sector.This estimation was based on the Financial Analysis and Strategic Direction 2010 to 2013.The 50,209,219.50 cubic yards, when converted, amounts to approximately 52 million tons of reserves.NQ also operates Turure Quarry in Sangre Grande, which has four plants on 2,500 acres of flat land.
The letter with the subheading: "Re: Current status and future operation plans for Scott's Quarry–Verdant Vale Blanchisseuse" stated due to the experience the company had in contracting out the operations of the quarry, which always resulted NQ in an disadvantageous situation, Ramkhelawan asked that the ministry facilitate a $25 million bank guarantee to purchase its own crushing plant.Crushing plants are specialised pieces of equipment that can take up to ten months to procure, install and commission.
The equipment NQ required were a geo crusher and impact crusher."This loan will allow NQ to realise profits exceeding $45 million in the first year. It would also eliminate concerns of under supply versus market demand over the next five years," Ramkhelawan explained in the letter.The plant would have given NQ 25 years of service.With work going full speed ahead with the $7.2 billion San Fernando to Point Fortin highway, Ramkhelawan stated in his letter that the plant should be deemed urgent.
A NQ source, who did not want to be named, said the plant would have also allowed a smooth transition after Sunway's contract ended, allowing NQ to take over its own operations. "However the Government failed to act," the source added.The source said since January NQ had been making appeals to the Government to buy the plant.On November 1, 2013, the Ministry of Energy's acting permanent secretary wrote Wilma Owen, acting CEO of NQ seeking an update on the current status of Scott's Quarry.
"In this regard, kindly indicate what contractual or other arrangements have been put or are in place for the future operations of this quarry upon the expiration of the contract with Sunway."The letter advised that the urgency of the matter required a response on or before November 4, 2013.
No responses
Questions e-mailed to Ramnarine on Wednesday about NQ were not responded to.Messages left at Lalla, Sammy and Gopaul's offices on Wednesday were also not returned. Calls to Sammy's office yesterday went unanswered.
Riley: He was trying to get preferential treatment
Chairman of Private Sector/Civil Society Group Winston Riley said, "I supposed he (Sammy) was trying to get preferential treatment."The group comprises members of the Joint Consultative Council, contractors, architects and engineers that specifically deals with procurement issues."The question is, nothing is wrong in trying to get preferential treatment, it is if National Quarries gives them preferential treatment when it is not correct."
Riley said no company should expect preferential treatment in the award of a contract/s."But the responsibility is on the procurement agency, that is, National Quarries whether they are going to do that. They should go out to see if they get the best operator."Riley said the onus was on NQ to ensure that they do things above board and in a transparent manner.If anyone is allowed to operate Scott's Quarry without the proper procurement, Riley said, the matter can raise questions.