Rolandus Canal PPP: Gumbs' answers leave questions about agreement, costs and govt oversight

GREAT BAY--Minister of Public Housing, Spatial Planning, Environment and Infrastructure (VROMI) Patrice Gumbs has confirmed that work on the Rolandus Canal rehabilitation project in Suckergarden began while the public-private partnership (PPP) document discussed in Parliament remained unsigned and the Ministry's broader PPP framework was still being developed.

The Minister also disclosed that government is contributing materials to the privately financed project, provided details about the related Blue Mall development permit and outlined the legal and administrative arrangements being developed for such partnerships.

Gumbs made the disclosures during the continuation of the 2027 national budget debate in response to questions from Member of Parliament Ardwell Irion concerning the agreement between government and Cupecoy Development, the legal basis for the partnership, the project's financing, contractor selection, government oversight and whether the developer received any benefits in return for participating.

The Rolandus Canal rehabilitation project was announced in October 2026 as an undertaking valued at approximately US$750,000, with Cupecoy Development identified as the private party financing the repairs. The arrangement involves improvements to drainage and surrounding infrastructure intended to address longstanding concerns about flooding and public safety in the Suckergarden area.

PPP Framework Still Under Development

Responding to Irion's question about whether the framework was an established government policy or an initiative developed by the Minister, Gumbs confirmed that government does not currently have a formal policy or framework governing public-private partnerships.

"As stated, there is no government policy or framework for PPPs," Gumbs told Parliament.

The Minister explained that VROMI had opted to develop its approach to partnerships while pursuing infrastructure projects because of the difference between the country's infrastructure needs and the financial resources available to the Ministry.

"The choice to work from result to document instead of document to result comes from the urgent need to bridge the gap between our infrastructure demands and our limited budget at the Ministry of VROMI," he stated.

Gumbs described the framework as a working document that had undergone initial legal vetting. He explained that it would continue to be developed before undergoing further review by Legal Affairs and being presented to the Council of Ministers.

When asked whether Parliament could receive the signed PPP framework, the Minister confirmed that the document had not yet been signed.

"As stated, this document is not yet signed. While work has begun, this was done to mitigate further risks and improve the safety of residents of Sugar Garden," he said.

Gumbs added that the document would be submitted to the Council of Ministers before signing.

The Minister did not specify whether separate project-specific agreements, authorizations or other legally binding arrangements were already in place when construction commenced. His response also did not establish whether the unsigned document was intended to govern the individual Rolandus Canal project, future VROMI partnerships or both.

Government Providing Materials to Project

Gumbs also clarified the financial arrangements associated with the rehabilitation works, explaining that while the private developer is financing most of the project, government is making contributions.

"We have defined this relationship as a PPP, but acknowledge it has various unique characteristics that may differ from what is traditionally seen as a PPP," the Minister explained.

"While the majority of the funding comes from the private entity, government is contributing, most recently in the provision of mill asphalt for the creation of a temporary road while works are ongoing."

The disclosure provides additional detail to earlier public statements identifying Cupecoy Development as the party financing the rehabilitation works. The Minister did not provide a monetary value for the milled asphalt or a complete breakdown of any other government contributions associated with the project.

He also explained that government maintains oversight and approval responsibilities during construction, while control and associated risks revert to government upon completion.

Minister Explains Developer's Expected Return

Irion also questioned whether the arrangement should be classified as a PPP, a privately financed public works contract or a donation to government.

Gumbs explained that the Ministry considers the arrangement a PPP, although its structure differs from some conventional partnerships.

According to the Minister, the project's original approach was not based on the private developer recovering its investment through direct financial reimbursement. Instead, he described the expected return as social, with improvements to public infrastructure potentially benefiting the wider neighborhood and individuals who may form part of the developer's future workforce.

Gumbs explained that improvements beyond the physical boundaries of a private development could support surrounding communities and contribute to improved living conditions.

The Minister did not identify any direct financial reimbursement to Cupecoy Development. His response also did not provide a complete account of the contractual commitments, rights or other conditions, if any, associated with the company's participation.

Legal Advice Obtained on Public Tender Requirements

The Minister also addressed Irion's question about the applicability of Article 47, which concerns government procurement and public tendering requirements.

Gumbs confirmed that legal advice had been obtained and stated that Article 47 did not apply because government had not purchased goods or services.

The Minister's response identified the absence of a government purchase as the basis for that position. He did not provide the legal opinion to Parliament or elaborate on how the opinion addressed government's contributions in kind and its responsibilities concerning the completed works.

Gumbs also confirmed that the private developer selected the contractor responsible for carrying out the work. He explained that private entities determine their construction methodology and whether to execute projects directly, through subcontractors or through a combination of both.

The Minister denied instructing the developer to select a particular contractor and maintained that government approval was required throughout the implementation process.

Independent Verification of Project Costs Planned

Irion also sought clarification on whether the estimated project cost had been independently verified.

Gumbs stated that an arrangement had been made for an independent third party to review the costs and verify expenditure.

"While there is an estimate, it has been agreed that an independent third party will review the cost to verify spending with reports provided," the Minister told Parliament.

He did not identify the independent reviewer, indicate when the assessment would be completed or provide the underlying cost estimate.

The Minister's response confirmed that independent verification was planned but did not establish that the review had already been completed.

Insurance and Responsibility for Construction Defects

Questions were also raised about insurance coverage and responsibility for defects associated with the infrastructure works.

Gumbs explained that construction risks remain with the private partner while the project is underway, with government assuming control and associated risks after completion.

When asked whether Parliament could receive the project's insurance policy, the Minister stated that it could not be shared. He did not provide further details about the policy or explain the reason for withholding it.

In response to related questions from MP Darryl York, Gumbs also addressed provisions governing disputes between the parties. He said the draft documentation had been further developed to include the possibility of proceedings before the Court of First Instance and arbitration if mediation proved unsuccessful.

The Minister did not provide the finalized contractual provisions governing construction defects, warranties, insurance coverage or the procedures to be followed if either party failed to meet its obligations.

Minister Addresses Blue Mall Building Permit

Irion also questioned whether the developer's involvement in the PPP had any connection to outstanding development permits.

Gumbs confirmed that an application for the renovation and redevelopment of the former Blue Mall was submitted on March 7, 2025, and approved on July 17, 2026.

The Minister maintained that the application had undergone the required procedures and met the conditions for approval. He explained that the existing building did not fully comply with certain setback requirements, but that this had been considered in light of the building's previous authorization and longstanding existence.

Gumbs also outlined enforcement actions taken during demolition activities associated with the property in 2025.

According to the Minister, an unusually large quantity of construction and demolition waste was identified at the landfill on August 6, 2025. The following day, instructions were issued to stop accepting demolition waste from the contractor involved.

He said inspectors subsequently visited the site on August 20, confirmed ongoing demolition works and issued a warning followed by a stop order.

A further inspection took place on September 4, 2025, after which the contractor received instructions concerning the separation and disposal of construction materials, including steel, concrete, aluminum and sheetrock.

Photographic documentation was also required to demonstrate compliance with the waste-handling instructions.

Gumbs presented these actions as examples of the Ministry applying its regular oversight and enforcement procedures to the development.

He maintained that the developer's participation in the PPP did not influence the building permit decision and that applications were assessed according to their merits and the applicable legal requirements.

The Minister did not provide the precise date on which discussions concerning the Rolandus Canal partnership first began or present the complete correspondence relating to the PPP and the Blue Mall permit.

Minister Cites Infrastructure Needs and Public Safety

Throughout his responses, Gumbs emphasized the need to address infrastructure deficiencies despite the Ministry's financial limitations.

He maintained that partnerships with private developers could provide opportunities to undertake infrastructure improvements that government might otherwise be unable to finance within its existing budget.

The Minister also linked the decision to begin work before completion of the PPP documentation to the need to address safety concerns affecting residents of Suckergarden.

His responses confirmed that the Ministry is developing a broader framework for future partnerships, that legal advice has been sought and that independent verification of the Rolandus Canal project's costs is planned.

They also established that the PPP document discussed in Parliament remained unsigned while construction was underway.

The next steps identified by the Minister include further legal review, consideration by the Council of Ministers and completion of the documentation governing the partnership.

Documentation That Could Clarify Outstanding Questions

The parliamentary exchange identified several areas where additional documentation could establish the complete legal, financial and administrative arrangements between government and Cupecoy Development. The following records would help clarify the matters raised by MPs and the Minister's responses:

1. Complete draft project agreement and supporting documents: The PPP agreement, including schedules, amendments and supplementary arrangements, together with confirmation of whether any other binding agreement or authorization existed when construction commenced.

2. Legal advice and approval chronology: Documentation identifying the legal issues reviewed, dates of legal assessments, authorities responsible for approving the project and whether Council of Ministers approval was required before construction began.

3. Complete financial contribution statement: An itemized account of contributions from Cupecoy Development and government, including the value of materials, equipment, personnel, transportation, technical services and any other public resources provided.

4. Construction contract and technical documentation: Records identifying the contractor, scope of work, construction specifications, milestones, engineering approvals, inspection arrangements and quality-control requirements.

5. Independent cost verification records: The original project estimate, supporting cost calculations, identity and mandate of the independent reviewer, and reporting requirements for verifying actual expenditure.

6. Insurance, warranty and liability arrangements: Documentation establishing insurance coverage, construction risks, warranties, defects liability periods and responsibilities continuing after government accepts the completed infrastructure.

7. Blue Mall permit chronology and related correspondence: The administrative timeline for the former Blue Mall redevelopment permit, together with relevant correspondence concerning the PPP, to establish how the permitting and partnership processes were handled independently.

The availability of these records, subject to applicable confidentiality requirements, would provide Parliament with additional information concerning the project's authorization, financing, implementation and the responsibilities undertaken by both government and the private developer.

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