Audit saves P39m on SSKIA tender

Brian Benza | Wednesday June 11, 2014 06:00

 

“Because this was a completion job, naturally contractors tend to overstate bid prices and scopes of work as they seek security in case they discover defects from the previous contractors. But as we went through the clarification process, we eliminated lots of aspects, which normally would have gone through unchecked. In the end, Stefanutti Stocks bid was slashed from P182 million to P143 million, saving about P39 million of government funds,” he said.

Stefanutti has been given 239 days to complete the job that stalled after government terminated the contract of Sinohydro. The government moved after the Chinese company failed to complete the airport’s expansion within time and cost. At the time of termination, the airport’s construction was two years and two months beyond deadline and P150 million above the original P433 million budget. 

When complete, the terminal building will boast a typical peak hour passenger capacity of 976. The expansion involves the extension of the runway by one kilometre, provision of a parallel taxiway and construction of dedicated cargo apron and additional hangers.

In the past two years, government has been vigorous in auditing construction projects, saving government millions in the process. Although government terminated Sinohydro’s contract for poor workmanship and delays, Mokotedi declined to put a blanket blame on Chinese companies for poor performance. 

 Responding to a question from Member of Parliament for Tswapong North, Prince Maele, who wanted to know the status of Chinese contractors’ performance, Mokotedi said the issue of poor delivery is not constricted to Asian companies alone.

“Chinese companies have built very strong and durable buildings in Botswana, the same kind you find in their own countries. Of late, the performance has deteriorated and the problem has manifested itself because of the numerous number of jobs they have been awarded. But to be fair, we need to look at ourselves, find out what part we have played in allowing this situation to happen (sic) as we have created an environment where shoddy contractors can get away with it,” he said.  The PS said the government is in the process of coming up with various legislative instruments for the construction sector to self-regulate itself.