N$16m fisheries office incomplete 11 years on
No end in sight for impasse
A quarrel between the contractor and government over outdated payment rates has stalled the project.
A fisheries ministry infrastructure project in Rundu - worth N$16 million and which has been under construction since 2012 - is still incomplete, with no end in sight for the job.
It has been four years since Namibian Sun reported about this incomplete structure, yet no progress has been made on the project apart from grass, shrubs and wild trees having grown tall, making the area look like a forest.
Attempts to get comment from both the works and transport and fisheries and marine resources ministries proved futile at the time of going to print.
In 2019, Namibian Sun quoted the fisheries ministry’s Kavango East regional office as saying the project had stalled because the contractor Africa Civil Engineering, which was handed the site on 7 August 2015 to complete remaining work, had decided to inflate the price, which the ministry was not prepared to tolerate.
As a result, the works ministry sought to terminate the contract at the time.
2015 rates
However, in a recent interview with Africa Civil Engineering CEO Petrus Kapula, the ministry was stopped in its tracks from taking the tender away, since the fault reportedly does not lie with the company.
Kapula explained that Africa Civil Engineering left the site due to non-payment by government for up to five months, and when they were supposed to resume work, a disagreement erupted.
They could no longer complete the job on the rates the state was paying, he explained.
He added that government was not willing to pay him the market-related cost of materials, but instead wanted to use the initial 2015 rates.
“Basically, what is happening there, we are supposed to go back on site and there is a directive to that effect that the contractor should go back on site and finish the project, but the one issue that is there now is that... we are more than ready to go back, but the problem is the rates that are outdated,” Kapula explained.
“Remember, those rates are for 2015 and they are not viable any more. We cannot use the same rates in 2023 because the prices have gone up, hence the price must be changed to the current market price.
“So, the issue we are sitting with right now is that the department of works does not want to revise those rates.”
He said they have written “numerous letters”, but have not received a response from the department.
Not at fault
“They attempted to terminate the contract, but it can’t go through because the contractor is not the one at fault.”
Kapula added that due to the existing structures having been exposed to various weather conditions, there will also be work that needs to be re-done, which will see the project cost inflate to more than what was initially budgeted for.
He urged stakeholders to fast-track the process to see to it that the project is completed as soon as possible to avoid more costs.
Africa Civil Engineering took over the project after Executive City Construction’s contract was terminated.
The initial contractor in 2012, the company was axed for failing to carry out and complete the work as per the original scope.
Africa Civil Engineering was expected to complete the project by the end of 2018.
It was further revealed that Africa Civil Engineering was paid about N$5.8 million for work done from 7 August 2015 to 7 July 2017.
About N$643 000 was retained by the works ministry, which was to be paid once the project was completed.
Over a decade
The fisheries ministry is currently renting offices at the Namibia Industrial Development Agency’s (NIDA) offices, where it has been renting 13 offices and two storerooms for its officials for more than a decade.
In 2019, officials expressed dissatisfaction with their working environment, as some plug sockets and lights were not working and space was limited.
Once completed, the regional office will house an office building, ablution block, workshop, wash bay and net drying facility, a fish feed store, a boat and trailer storage facility, garages, a generator room and a guard house.
It will also offer installations of specialist services, equipment and associated ancillary site work.
[email protected]
It has been four years since Namibian Sun reported about this incomplete structure, yet no progress has been made on the project apart from grass, shrubs and wild trees having grown tall, making the area look like a forest.
Attempts to get comment from both the works and transport and fisheries and marine resources ministries proved futile at the time of going to print.
In 2019, Namibian Sun quoted the fisheries ministry’s Kavango East regional office as saying the project had stalled because the contractor Africa Civil Engineering, which was handed the site on 7 August 2015 to complete remaining work, had decided to inflate the price, which the ministry was not prepared to tolerate.
As a result, the works ministry sought to terminate the contract at the time.
2015 rates
However, in a recent interview with Africa Civil Engineering CEO Petrus Kapula, the ministry was stopped in its tracks from taking the tender away, since the fault reportedly does not lie with the company.
Kapula explained that Africa Civil Engineering left the site due to non-payment by government for up to five months, and when they were supposed to resume work, a disagreement erupted.
They could no longer complete the job on the rates the state was paying, he explained.
He added that government was not willing to pay him the market-related cost of materials, but instead wanted to use the initial 2015 rates.
“Basically, what is happening there, we are supposed to go back on site and there is a directive to that effect that the contractor should go back on site and finish the project, but the one issue that is there now is that... we are more than ready to go back, but the problem is the rates that are outdated,” Kapula explained.
“Remember, those rates are for 2015 and they are not viable any more. We cannot use the same rates in 2023 because the prices have gone up, hence the price must be changed to the current market price.
“So, the issue we are sitting with right now is that the department of works does not want to revise those rates.”
He said they have written “numerous letters”, but have not received a response from the department.
Not at fault
“They attempted to terminate the contract, but it can’t go through because the contractor is not the one at fault.”
Kapula added that due to the existing structures having been exposed to various weather conditions, there will also be work that needs to be re-done, which will see the project cost inflate to more than what was initially budgeted for.
He urged stakeholders to fast-track the process to see to it that the project is completed as soon as possible to avoid more costs.
Africa Civil Engineering took over the project after Executive City Construction’s contract was terminated.
The initial contractor in 2012, the company was axed for failing to carry out and complete the work as per the original scope.
Africa Civil Engineering was expected to complete the project by the end of 2018.
It was further revealed that Africa Civil Engineering was paid about N$5.8 million for work done from 7 August 2015 to 7 July 2017.
About N$643 000 was retained by the works ministry, which was to be paid once the project was completed.
Over a decade
The fisheries ministry is currently renting offices at the Namibia Industrial Development Agency’s (NIDA) offices, where it has been renting 13 offices and two storerooms for its officials for more than a decade.
In 2019, officials expressed dissatisfaction with their working environment, as some plug sockets and lights were not working and space was limited.
Once completed, the regional office will house an office building, ablution block, workshop, wash bay and net drying facility, a fish feed store, a boat and trailer storage facility, garages, a generator room and a guard house.
It will also offer installations of specialist services, equipment and associated ancillary site work.
[email protected]
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