Why public works are not insured

[NewsWhore]

A report in Listin Diario gives the reasons why public works are not insured, despite the country's vulnerability to hurricanes in the Caribbean. The reasons range from overvalued works, bad construction practices, cutting corners and a lack of guarantees on the quality of the materials. While none of the sources interviewed was willing to go on the record with their comments, the reporter mentions that in general, government works are assigned directly, without a tender. Insurance companies require a tender to be held if they are to provide coverage. On the question of overvalued public works projects, the reporter explains that the final cost often ends up being three times the real cost. The insurance company would assess the property, and would need to use the real value for the coverage, exposing the overvaluation. The reporter also mentions that the government department in charge of supervising the construction of public works carried out by the Ministry of Public Works has taken on the role of builder. Furthermore, insurance companies verify the quality of the materials used, which would again reveal any violations of minimum building standards. The poor quality of recent public works projects was in the spotlight in the wake of Tropical Storms Noel and Olga, when several bridges built in the past 10 years collapsed, while 50-year old bridges have survived repeated storms.

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