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Wednesday, 20 February 2008
The Ministry of Water has filed a $374 million claim against European auto manufacturer Daimler Chrysler.
The claim follows a long-standing dispute between the Government and the company over several defective water trucks which were purchased by the Rapid Response Unit nearly eight years ago.
Out of the one hundred units that were purchased in May 2000, only 31 are still in operation.
Minister of Water Dr. Horace Chang told Parliament Tuesday that his Ministry is among other things claiming for loss of use.
"The Ministry has initiated a $374 million legal claim against the manufacturer of the trucks Daimler Chrysler on the grounds that the trucks have developed mechanical problems within five months of delivery which has persisted," said Mr. Chang.
"The ministry contends that the transmission failure was caused by initial manufacturing defect and was exacerbated by improper maintenance on the part of EuroStar Motors. The claim covers loss of use, loss of profits and compensation for the replacement of defective transmission," he continued.
Mr. Chang says 25 trucks suffered transmission failure with only three repaired to date.
The other units were written off following accidents.
The Water Minister says several of the trucks were affected by after delivery service issues.
These include wide scale transmission failure, leaking tankers, poor paint work resulting in tankers rusting, loosening of tankers from chassis and water pumps failing due to inappropriate construction material.
Dr. Chang says the problems were compounded by long turnaround time for repairs.
The periods ranged between six to eight weeks.
And due to a shortage of trucks, Dr. Chang says the Rapid Response Unit is unable to provide water to communities being affected by drought.
The most affected areas are South Trelawny, South St. Ann, Northern Westmoreland, St. Elizabeth, Manchester, St. Thomas and St. Catherine.
The Unit is also struggling to meet the daily demands of its regular customers.
As a result, the Water Ministry has turned to the private sector for assistance.
"The Ministry of Water and Housing in consultation with the Office of the Prime Minister and the Ministry of Finance and Public Service have identified funds to begin with additional trucking of water to the previously mentioned areas which are regarded as in critical need," he said.
"This will commence in the week of February 25 and will include the use of private contractors as we do not have enough elements of the fleet active,"
"We are currently in discussion to provide short term repairs to a number of the subs to bring our fleet up to about 45 it is not likely that we can get above that number before the dry season is concluded," he continued.
He disclosed that 20 new water trucks will be acquired during the 2008/2009 Financial Year.
The Ministry of Water has filed a $374 million claim against European auto manufacturer Daimler Chrysler.
The claim follows a long-standing dispute between the Government and the company over several defective water trucks which were purchased by the Rapid Response Unit nearly eight years ago.
Out of the one hundred units that were purchased in May 2000, only 31 are still in operation.
Minister of Water Dr. Horace Chang told Parliament Tuesday that his Ministry is among other things claiming for loss of use.
"The Ministry has initiated a $374 million legal claim against the manufacturer of the trucks Daimler Chrysler on the grounds that the trucks have developed mechanical problems within five months of delivery which has persisted," said Mr. Chang.
"The ministry contends that the transmission failure was caused by initial manufacturing defect and was exacerbated by improper maintenance on the part of EuroStar Motors. The claim covers loss of use, loss of profits and compensation for the replacement of defective transmission," he continued.
Mr. Chang says 25 trucks suffered transmission failure with only three repaired to date.
The other units were written off following accidents.
The Water Minister says several of the trucks were affected by after delivery service issues.
These include wide scale transmission failure, leaking tankers, poor paint work resulting in tankers rusting, loosening of tankers from chassis and water pumps failing due to inappropriate construction material.
Dr. Chang says the problems were compounded by long turnaround time for repairs.
The periods ranged between six to eight weeks.
And due to a shortage of trucks, Dr. Chang says the Rapid Response Unit is unable to provide water to communities being affected by drought.
The most affected areas are South Trelawny, South St. Ann, Northern Westmoreland, St. Elizabeth, Manchester, St. Thomas and St. Catherine.
The Unit is also struggling to meet the daily demands of its regular customers.
As a result, the Water Ministry has turned to the private sector for assistance.
"The Ministry of Water and Housing in consultation with the Office of the Prime Minister and the Ministry of Finance and Public Service have identified funds to begin with additional trucking of water to the previously mentioned areas which are regarded as in critical need," he said.
"This will commence in the week of February 25 and will include the use of private contractors as we do not have enough elements of the fleet active,"
"We are currently in discussion to provide short term repairs to a number of the subs to bring our fleet up to about 45 it is not likely that we can get above that number before the dry season is concluded," he continued.
He disclosed that 20 new water trucks will be acquired during the 2008/2009 Financial Year.
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