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Stabroek News

Construction quarrel - Chinese contractors favoured over locals in Trinidad
published: Friday | June 8, 2007


Patrick Manning, Prime Minister of Trinidad and Tobago, has announced a programme for small contractors that gives them 10 per cent of public sector contracts. The twin-island's builders have complained that the major projects are being awarded to foreigners to the detriment of the local construction sector. - File

Linda Hutchinson-Jafar, Business Writer

Chinese building contractors are in big demand by the Trinidad and Tobago Government, and are often tagged for major projects over home-grown construction companies, who have been criticised for their inflated bids, poor work ethic, and failing to complete jobs on schedule.

But builders have in turn accused the Government of discrimination, saying the foreign builders have more leeway to import labour, some of whom are being paid below market rates, causing displacement.

A Chinese contractor is the sole builder of the new Prime Minister's residence and diplomatic centre, the academy for the performing arts and a new ministry of education. Another has been awarded a contract to build a stadium, and one is involved in the construction of the Alutrint smelter plant.

Locals failed to deliver

Recently in the Trinidadian Parliament, National Security Minister Martin Joseph said he would be forced to turn to the Chinese to complete five police stations after local contractors failed to deliver them last year as scheduled.

"I find myself as the Minister of National Security in one of the most embarrassing positions," said Joseph, adding that none of the police stations was completed.

Added Works and Transport Minister, Colm Imbert: "People are complaining about the Government importing Chinese labour for projects, but we have had to change contractors working on the Wrightson Road project (in Port-of-Spain) three times because of their inefficiencies."

The latest contract award was to China Jiang Su International Corporation to undertake the billion-dollar construction of the main campus of the University of Trinidad and Tobago.

"Where we have been using Chinese contractors we have found that the results have been better," said Tertiary Education Minister Mustapha Abdul-Hamid.

But Mikey Joseph, president of the Contractors Association, said the presence of foreign builders raises questions about fair treatment by Government of the local industry.

"Some local contractors have complained of having great difficulty in receiving work permits and permission to recruit expatriate technical staff, while it appears that foreign contractors have absolute freedom to recruit expatriate workers at all levels with little or no hindrance," said Joseph.

"There is an abundance of foreign labour on our shores today and a rough estimate may indicate the presence of no less than 3,500 in the building construction sector whose wages are, in some cases, as much as 60 per cent lower than prevailing wages in the local construction sector."

No evidence of displacement

Labour Minister Danny Montano said that there is no evidence that local workers were being displaced by Chinese crew.

"We are quite satisfied that there are no laws that are being broken in this country by any of the Chinese contractors or employers of Chinese labourers."

Joseph is charging that the preference for foreign builders, if unchecked, could hurt the construction sector in the longrun.

He was also critical of the Manning administration, saying there was no competitive tendering and that the system of 'government to government' arrangements was shrouded in secrecy.

"Phrases such as 'local contractors are too busy' and 'cannot cope with the programmes of the government' are not totally true, because as we speak," said the association president, "there are contractors with idle capacity solely due to the bundling of projects to form mega projects, where the criteria for selection makes it almost impossible for most local contractors to qualify."

Prime Minister Patrick Manning in a show of leniency announced that 10 per cent of public sector jobs would be awarded to small contractors.

"Some of them don't have the financial resources, so we took a decision to give them 50 per cent of the payment up front so they can buy equipment to carry out the job, said Manning.

"We are bending backwards to ensure the small man gets a bite of the pie."

Government also plans to send at least 20 candidates to one of China's leading construction and management schools later this year.

"They're going with the knowledge that after they're trained, they are coming back to contribute to this country's development, " said Calder Hart, Chairman of the Urban Development Corporation of Trinidad and Tobago which is overseeing the multibillion dollar construction of government buildings.

"The whole issue of manpower training, both at the skilled and construction management methodology is critical in terms of being able to ensure that the Government meets its development agenda," he added.

Prime Minister Manning recently met with a delegation from China's Sunway Group led by its president Chew Chee Kin on a proposal to partner with Trinidad on exposure for local builders to the technologies and models used by the firm in its successful construction projects.

"The Prime Minister indicated to the Sunway Group that it was critical that the skill level of local small contractors was raised during this period of intense infrastructure development," said a statement from Manning's office.

business@gleanerjm.com

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