Tuesday, April 23, 2024

Cancelling Fratelli contract possible – State

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THE Road Development Agency (RDA) says it is ready to terminate the over K300 billion Pedicle Road contract awarded to Fratelli Locci of Italy, from whom former President Rupiah Banda’s son Andrew has admitted receiving a “payment” which he says is not a” kickback”.

RDA management last week met to assess the unimpressive pace at which Fratelli Locci, owned by one Antonello Locci, is mobilising equipment for the project which should have started on October 26, 2011.

The agency is preparing a report to the Ministry of Transport, Works, Supply and Communication on the delayed project for consideration.

“We were discussing that last week because we thought that it will be important for us to do a report in terms of status of the project and where it should have been at this moment…once we do that they (the ministry) will give us guidance as government.

“If they tell us to terminate, we have no quarrel, we can terminate immediately but at least we will have advised our Government on the loss that RDA will incur and RDA represents government. Our role here is to give Government professional advice…” RDA senior manager for construction and rehabilitation Ronald Nyangu said in an exclusive interview in Lusaka yesterday.

Mr Nyangu said the RDA management is not happy with the pace at which Fratelli Locci has been mobilising equipment for the 70 kilometre road, which has been on the drawing board for years now.

He clarified that RDA has not yet paid Fratelli Locci anything because of the public outcry.

Mr Nyangu said the Italian firm, which has already reaped K142.6 billion from the Zambian government for the two contracts it was awarded to rehabilitate township roads in Ndola and Mufulira under the MMD government’s so-called “formula-one”, has submitted performance security and an advance guarantee from Banc ABC, requesting the RDA for an advance payment for the Pedicle project.

He could not give his impression on the quality of Fratelli Locci’s work that gobbled the K142.6 billion because the “formula-one” project was being supervised by some officers who were recently fired from RDA.

Mr Nyangu added that after assessing the Pedicle Road project, management found that despite the slow pace, Fratelli Locci is on course to mobilise equipment.

“So we found it difficult to terminate immediately and instead what we did as management was to consider whether to terminate the contract, especially in the light of the cries we are getting from the people.

“We also recognised the fact that if we terminated then, Government would be liable to pay termination costs. There will be costs for loss of profit by the contractor, and then there will be cost for the equipment he has mobilised and to demobilise that equipment. Then there are other costs that go with termination of the contract and all those will be lumped on government but meanwhile, nothing will have been done,” he said.

Mr Nyangu could not confirm if it is true that Fratelli Locci was introduced to the RDA by Andrew Banda.

“I wouldn’t say that Fratelli was introduced to RDA by one of the sons of the former President because my role here is to implement projects…when we tender, we do open tender and anyone who has capacity on the Zambian market is free to participate in that tender. When they tender we evaluate, and once we evaluate there is a process that we follow.

“So whether they were introduced by the former President’s son or not, that I would not know because I look at the documents as they come and those documents don’t indicate how this person has come. We have so many contractors from China and South Africa who are introduced on the Zambian market by many different people, but for us to consider them they produce papers that show that they are qualified to do that kind of job,” he said.

Tarring of the Pedicle Road, the shortest route between Copperbelt and Luapula provinces, will cost Government exactly K313, 887,290,717.78 70 and is scheduled to be completed on October 25, 2013.

[Zambia Daily Mail]

10 COMMENTS

  1. FRATELLI LOCCI HAVE NOT BEEN PAID A CENT ON PEDICLE ROAD.no chiKKala anthony mukwita where do you get your spiced stories from?

  2. This is an ILL-CONCEIVED PROJECT!!! A CAPITAL PROJECT IN A FOREIGN COUNTRY WHERE THE OTHER COUNTRY DOESN’T EVEN SPEND A PENNY, & at any WHIM CAN CLOSE THE BORDER, THUS RETAINING THE ROAD FOR NOTHING!!! We have no written guarantees, even if we had, these would be invalid in INTERNATIONAL LAW. The only viable & secure way of doing this project, is by way of Co-funding with DRC like we have done with Tanzania as relates to TAZAMA. As much as i would like to cruise on a clean tar road for the “mutomboko”, I would like to be assured it is a co-funded road with secure guarantees from DRC.

  3. Its standard on any contract to pay mobilisation costs. If these guys havent been paid, how do you expect them to mobilise equipment. This is stupidity at its worst. Please be professional. Cancelling this contract will cost you a lot. Use your heads for a change!

    • You are the stupid one! You first mobilise and then get paid! These *****s don’t even have equipment!

  4. Anthony mukwita will WMD up badly, here it it’s clear that the RDA never paid the Italian company contrary to mukwita story that Andrew Banda got two billion from the pedicle road project!

  5. No. 3. its not standard to pay mobilizaton costs, it all goes with how the contract is structured whether its FIDIC or other and what the Particular conditions stipulate. No. 2 you r very right, I hapd to be in the know some time back when theMwanawasa Govt was in power but you must understand that the economic benefits far outweight the security threats. the initial investmnt may be too much and the risk grt, but the long term benefits to both Zambians and the cnglese will surpass this threat. there were attempts to get the Katanga authorities as well as the DRC Govt on board through other means when we tried to acquire some aid from World Bank but the DRC govt declined on the basis that the road was not priority to them and they could not enter into any agreements but assured of security

  6. This is a ‘political project’. It should be terminated the same way as the Mongu- Kalabo road. Works and Supply Minister Yamfwa Mukanga please act and terminate this ‘political project’ started by the ‘infamous’ RB. Or are you still busy firing clerks and sweepers with ‘foreign names’ at RDA for corruption?

  7. Why waste time on these fools? Just terminate the contract and take them to court. You will see whether they can even afford the lawyer fees. Italy is broke!

  8. Ronald Nyangu is manager mamamamamama from water engineering to roads kwena this is a sangwapo country. Terminate the contract please and take the money to bottom road, the pedicle road is not a priority at the same time its very expensive. No payment of mobilisation costs are due to the contractor he has faulted, termination costs is nothing to fear because u need to apply relevant clauses

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