August 20, 2020

 

Namibia's Keetmanshoop aquaculture project woes continue

 

 

The unfinished Keetmanshoop Fonteintjie aquaculture project of Namibia is costing taxpayers millions more than the NAD20.4 million originally planned, Namibian reported.

 

This emerged when minister of works and transport John Mutorwa and minister of fisheries and marine resources Albert Kawana visited the site at Keetmanshoop on Monday to meet with consultants for the project, as well as the contractor, architects and government officials.

 

The government contracted Edison Building Enterprises CC, owned by Edison Kapuuo, in 2013 for the project's first phase.

 

This included the erection of a fence and the construction of several buildings, ponds, water-supply infrastructure, water-tank stands, and the installation of septic tanks and a drainage system.

 

Construction commenced in 2014, and was set to be completed within 14 months.

 

But in 2016 the project grinded to a halt after the contractor allegedly abandoned the project due to a payment dispute.

 

At Monday's meeting it transpired that the contractor had allegedly been paid NAD15 million for 85% of the construction completed, and that the remaining 15% would cost the government additional millions.

 

Valker Fischer of Fischer-Buder Consulting Engineers said the project's recirculation aquaculture system, which initially cost NAD2.4 million, is now expected to escalate to NAD4.2 million as a result of equipment valued at NAD1.8 million which was damaged and stolen from the construction site after it was abandoned.

 

The project's quantity surveyor, Dawid Nel, said the contractor had raked up NAD10 million in penalty fees for failing to complete construction within the set 14 months.

 

He said the contractor was overpaid by NAD1 million to mitigate possible cash flow problems.

 

Nel estimated the cost overrun at close to NAD10 million due to four years' delay.

 

It also emerged that the Ministry of Works and Transport has sought appropriate legal advice from the Office of the Attorney General on terminating the contract with the contractor.

 

Begona Garcia, representative of the project's principal agent, Burmeister and Partners (PTY) Ltd, said issues relating to the contractor's inability to complete the project and substandard work were evident from the start.

 

Despite this, she said the project's technical team assisted the contractor.

 

Garcia said the contractor had been fully paid for construction work completed, but subcontractors he had hired claimed they were not paid.

 

Moreover, she charged the contractor had abandoned the construction site—a claim Kapuuo vehemently denied.

 

Kapuuo said he terminated the agreement between himself and the government after the latter had failed to pay him for work completed.

 

The nonpayment of invoices, he said, affected the company's cash flow.

 

Kapuuo admitted his company started out with cash flow problems because of construction work that had to be redone, and because the government allegedly withheld payment for completed work.

 

Mutorwa said the information disclosed on why the project was delayed was very helpful and would be reviewed to find a solution.

 

He, however, warned that any misconduct would not be condoned.

 

The minister said it seems some consultants and government officials collude to disadvantage contractors, saying he already "smells that a new contractor would be appointed for the project in question, while the consultants would continue".

 

Kawana said it was clear the relationship between the consultants and the contractor was irreparably damaged, and the way forward regarding the project would depend on the attorney general's legal advice, and the consultants' reports on the matter.

 

He hinted that a new contractor would be appointed to complete the remaining 15% of construction on the project.