Happy Monday!

This week, we cover the controversies of the government awarding various contracts and an inflation compensation to civil servants.

President Chan Santokhi has suspended three infrastructure projects following legal action and public concern.

• President Chan Santokhi has decided to suspend three major infrastructure projects following media reports and public concern, including road projects in Nickerie and Sipaliwini and a land development project in Saramacca.

• Construction company Baitali N.V. has initiated legal proceedings for the first two projects, while the third project was approved through an exceptional government resolution, which has drawn significant media attention.

• The government has prioritized these projects to improve living conditions after implementing economic reforms with the help of the IMF. Delays in the projects occurred due to external factors, including financing issues.

• The government is awaiting court decisions regarding the first two projects and has suspended any further actions in accordance with the court's instruction.

• After legal advice, the president has decided to suspend the third project indefinitely, starting April 14, 2025, for evaluation. No work will proceed until the internal review is complete, with further decisions to follow based on the evaluation.

A judge initially stopped the government from proceeding on a project between Nickerie and Apoera due to a legal investigation into the bidding process.

• A judge has immediately prohibited the Surinamese government from proceeding with the road rehabilitation project between Nickerie and Apoera, pending a legal investigation into the awarding process.

• The project, worth over 44 million USD, was awarded by the Ministry of Agriculture, Livestock, and Fisheries to Shiwan Tushan Suriname N.V., raising concerns due to the alleged lack of transparency and inexperience of the winning contractor.

• Construction company Baitali N.V., which originally helped develop the project and participated in earlier tenders, claims the Ministry of Agriculture, Livestock, and Fisheries unfairly excluded it from the later tender process.

• Baitali had previously been told by the Ministry of Public Works (OW) that the project couldn’t proceed due to budget constraints, only to find later it was re-tendered by the Ministry of Agriculture, Livestock, and Fisheries.

• Baitali alleges the awarded contract is $10 million above the market price and criticizes the lack of participation from reputable companies. Baitali has taken the case to court; the opposing party must formally respond by April 17.

Another project has been stopped and suspended.

• A judge has halted the Van ’t Hogerhuysstraat–Slangenhoutstraat infrastructure project, prohibiting the State from tendering, awarding, or signing any contracts for its execution.

• The project, funded by the Inter-American Development Bank (IDB), was previously controversial due to alleged leaks of tender information from the Ministry of Public Works to other companies. The IDB canceled the initial award and required a re-tendering of parts of the project; it now limits its role to financing.

Earlier in the week, the government had approved a land development project in Saramacca.

• The government has approved a land development project for housing and horticulture in FAI-Jarikaba, Saramacca, again to the same company, Kuldipsingh Infra NV. This project was awarded over US$ 23.4 million, bypassing the standard public tender procedure.

• President Chan Santokhi had authorized Minister Parmanand Sewdien to start the project and sign the construction contract on behalf of the State.

• This award came from US$ 20 million that will be financed through the Fiscal Sustainability Program for Economic Development, and the remaining US$ 3.4 million will come from the 2026 budget of the Ministry of Agriculture, Livestock, and Fisheries (LVV).

As inflation compensation, the government has granted SRD 1,500 for civil servants in April and May of 2025.

• The government has decided to grant civil servants and their equivalents a net payment of SRD 1,500 in April and May as compensation for inflation.

• Trade unions, represented by Ravaksur Plus, oppose the decision, arguing for a permanent salary increase instead of a temporary two-month payment. They rejected an earlier government offer of SRD 1,250 and requested a 25% wage increase.

• Discussions between the government and Ravaksur Plus will continue on April 24. The goal is to find a solution that balances employee interests and economic stability.

• Civil servants will receive SRD 1,500, while pensioners will receive 70% of that amount, equating to SRD 1,050. The government stressed the importance of good cooperation with the unions and other sectors to support Suriname’s recovery and development amidst ongoing financial challenges.

• Around 91,000 individuals, including 33,000 pensioners, will benefit from the temporary payment. Tax relief proposals will also be discussed during the April 24 negotiations.