THE Ocho Rios to Port Antonio leg of the long-running North Coast Highway Project could end up costing 120 per cent more than the projected $5.86 billion, according to Finance Minister Audley Shaw.

Closing the 2011/12 Budget Debate on Wednesday at Gordon House in Kingston, Shaw said the project — which started out at a projected cost of $5.86 billion — has so far cost the Government $7.3 billion. The finance minister said with a claim now made by the contractors, PIHL, of $10.3 billion, in addition to the $7.3 billion that has already been paid out, the project "could cost the Government a whopping $17.6 billion or $183 million per kilometre, representing a cost overrun of over 120 per cent".

 

SHAW... the case of the Ocho Rios to Port Antonio leg of the highway is a classic case of fiscal recklessness which we are bringing to an end

That projection was, however, vigorously disputed by former transport and works minister under the previous administration, Robert Pickersgill, who argued that "there is nothing as yet to establish any overrun", and accused Shaw of being "highly irresponsible and scandalous".

Said Pickersgill: "No $10-billion bill has reached you. What is before us is the fact that the contractors have made some claims which is in the ordinary run of business." He added that it was "unprincipled, if not vulgar", for Shaw to be "running up his mouth" while the negotiation is going on.

"That is more prejudicial than probative. Why are we allowing them (Shaw and Transport Minister Mike Henry) to get away with that? How will it help them in the arbitration? They are not to do it! This is nonsense! You are highly irresponsible!" Pickersgill railed.

But muttering "you will soon hear from me", implying that there was more to come, the finance minister said "it (was) this kind of scandalous fiscal irresponsibility that over the years has caused our debt to balloon and has become an albatross around our necks".

Added Shaw: "We are debating the public's business, this is not private. As minister of finance I am the one who has received the correspondence with the $10-billion bill.

"Now I am being told that a piece of the road has collapsed, the most expensive road in Jamaica, and it start to collapse already," Shaw said.

"The case of the Ocho Rios to Port Antonio leg of the highway is a classic case of fiscal recklessness which we are bringing to an end," the finance minister continued.

On Wednesday, in an effort to quell the melee, House Speaker Delroy Chuck advised Pickersgill that if at any time he could provide information that the allegation of a $10-billion bill by Shaw was misleading, it could be brought to Parliament, at which time the finance minister would have to withdraw the statement.

The North Coast Highway, a sub-project of the Northern Jamaica Development Programme, was created to bring improvements to the physical infrastructure along the north coast. The project, which began in the 1990s under the previous administration, has experienced numerous hiccups. It has been jointly funded by the Government of Jamaica, the Inter-American Development Bank and the European Union.