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Sunday, September 20, 2020

Millennium Challenge Account-Zambia Terminates the US $52.3 million contract with Elevolution Engenharia

Headlines Millennium Challenge Account-Zambia Terminates the US $52.3 million contract with Elevolution...

Millennium Challenge Account - Zambia Contract signing ceremony
FILE: Millennium Challenge Account – Zambia Contract signing ceremony

Millennium Challenge Account Zambia has terminated two contracts with Elevolution Engenharia (Elevo) of Portugal worth US $52.3 million under the Lusaka Water Supply, Sanitation and Drainage Project for consistently failing to meet its construction targets and to remedy performance concerns despite sustained efforts by MCA-Zambia.

According to MCA Zambia Head of Communication John Kunda, the underperformance by Elevo poses a risk of not completing the infrastructure works on schedule thereby denying the residents of Lusaka, the expected benefits of increased access and availability of clean water and proper sanitation.

Dr. Kunda said Elevo has also continuously failed to ensure quality work according to Contract specifications, including the reinstatement of public roads and private driveways.

He further said Elevo has not been compliant with the labour laws of Zambia resulting in industrial unrest among its construction staff.

“On behalf of Government of Zambia, MCA-Zambia is fully committed to ensuring that the two infrastructure contracts are delivered for the benefit of the people of Zambia and the expectation of the United States Government, through the Millennium Challenge Corporation (MCC),” Dr. Kunda said.

Elevo was contracted in February 2016 through a competitive and transparent procurement process to construct water supply and sewerage network in both Mtendere and Mtendere East.

This included laying about 60 kilometers of water main supply lines and 82 kilometers of sewer lines, and select sewerage facilities in Salama Park and Chelstone.

In addition, Elevo was contracted to carry out works to replace old, leaking water pipes to reduce water losses in the existing network and to replace malfunctioning and obsolete water meters, in select parts of Lusaka to improve accurate billing.

“MCA-Zambia reassures its various stakeholders of its unwavering commitment to ensure that the construction works are completed, in line with Lusaka Water Supply, Sanitation and Drainage Project objectives,” Dr. Kunda said.

41 COMMENTS

  1. Is any leader going to help us from police collecting money from drivers on roadblocks? What should we do?

    • @Name* well put. Or, could we at least be informed via a Ministerial Statement in the National Assembly how much is collected at roadblocks, and to what use the monies are put?

    • That’s what corruption does – get sub-standard contractors who can’t perform and eventually disappear in thin air.

    • Why do you have to pay Policemen at roadblocks. I drive and I have never found myself in a situation were I need to pay the Police.

    • Another scandal!!! why can’t Zambians terminate contract with these PF? I don’t like to compare, but bring KK to help us, Malaysia just brought back a former PM who is now 94.

    • I think its high time we started beating these thieves masquerading as contractors. Uja muzungu working on that project in my compound azaponoka if he does shoddy works!!!

    • Been stopped at police roadblocks myself many times for various minor offences for which I have been asked to pay. What I do in response is respectfully produce my work ID and other details and then ask for a bill to settle at the nearest or convenient police station.

      Almost always the rogue officers back pedal and instead opt to caution me. It works for me very well …

  2. Water,sanitation and drainage project ,Zamtel ,Zambia Airways ….all failed .Anything we can manage well in Zambia?

    • Remember that it is not the entire project that is terminated. It is two contracts out of 7 that have been terminated. And the works are continuing. Termination is an option in the contract. It is does not mean that the contractor has disappeared.

  3. It’s not a Zambian contractor who has failed but a Portuguese one who was selected with approval of the Americans I would like to believe. There is real fear that the project will not be completed on schedule now. Anyway, failure exists everywhere, it’s just a difference of degree.

  4. If only GRZ contracts had clauses like these US contracts unfortunately GRZ is not swift at making payments and contracts are awarded to cadres.

  5. The same Lusaka water and sanitation project that we have seen almost $800 million borrowed for at different times ??

    This project needs a serious audit….i am sure we have seen GRZ borrow many times in the name of that same project ? May be they were using the same name as umbrella project ?

    • This is a US$355 million Lusaka Water Supply, Sanitation and Drainage Project. It comes in the form of a grant. The money is in the US treasury and contractors are paid directly from the US Treasury. We have not borrowed any more than what we are administering. We have also been audited 4 times with unqualified audits. We are custodians of tax payers money and we will not relent in ensuring that project objectives are being met on a weekly basis. This contractor has managed to achieve some outputs but they are not satisfactory considering the time-bound nature of the project.

  6. Zambian contractors under elevo are to be blame cos they have failed to perform nd they lack equipments nd they believe in manual work

    • Frank you don’t know what local contractors go through. You’ll do best to contact me I run you through to understand. If a local company is hand picked by an invisible hand. Doesnt mean that’s the best local company that our Country has. Which also apply to international companies . So please spare the true local contractors.

  7. He will hold a press conference at his chalala house with twisted facts

    He not telling his devotees how he made his money

    • Can we also be enlightened on the Fraud conviction of the one in state house and how his LAZ licsence wasn’t reinstated ?

  8. How are we going to recover the down payment?. The foreign company would have had local sponsors. Give us the names of the local directors. Who are the local directors in this company?

    • Chi Allepo Trump, government shall invoke Performance security issued by Bank or Insurance company and recover a part of the money.

      There might be other side to this story. The Portugese are refusing to bribes and asking for release of payment for works done and the corrupt officials led by ministers are refusing to release without 10% of the invoice value.

      There are so many contractors who have not been paid for over a year. One of them is owed by RDA K97 million for over 10 months and the contractor has stopped working on the road.

    • I am sure you are referring to advance performance which is administered in line with FIDIC contract obligations. It is not the contract value that is in the hands of the contractor. This money resides with the administrators. The contractor is paid against his approved invoices. Not all monies were disbursed. There are safeguards in contracts to protect the interests of both parties.
      Thank you for asking.
      John

  9. The only solution to all these ‘to and fro’ movements is to tell the ones giving us money to write cheques direct to this contracts after inspecting the works at every stage they agree. Not what is happening now. The scam will continue. So I am appealing to those willing to continue helping this country develop that please DO NOT give us money but ask us what we want, advertise, pick contractors then we handover to you for further handling. Money should be disturbed by you direct to the contractor upon inspecting the works. Otherwise ifwe nififne? Kubwelapofye patali!!!!

    • A very practical and good suggestion. If the contracts are supervised by the donors’ appointed engineers/architects and money released direct to the contractors, most of the corruption will be gone. Shoddy works would not be accepted and value for money will be ensured.

    • We administer these contracts to ensure project objectives are met. Currently, we have a US team in Zambia working alongside our teams. There are strict controls on project implementation and ensuring efficiencies in the system.

  10. Let RDA also terminate the contract for that Indian (Gupter) working on Musaila – Lubwe – Kasaba road. A 125 KM road can’t take more than four years. Ubupupu muchalo.

  11. Some of these issues are not directly connected to the Government. At least we have seen some responsible people who have come open to cancel the contract. It is an improvement and we should thank those who took the lead to cancel the contract.

    • Thank you for commenting on the subject. Kindly note that this project is managed by Millennium Challenge Account Zambia on behalf of the Government of the Republic of Zambia. This is a grant and not a loan. The termination is a result of the contractor failing to meet his own construction targets as outlined in his program of works. This does not mean that he has not done anything. However, the pace is unacceptable and is likely to compromise on overall project objectives. This termination is part of contract administration in which we have taken the option of terminating in order to salvage the intentions of the contract.

  12. Dabenji it’s all related to government this is what happens when you have weak leadership. Government should be seen to be fighting corruption which doesn’t seem to be the case in Zambia. If elected officials are stealing what do you think ordinary citizens will do too. They will be encouraged to steal also

  13. People, don’t express your ignorance on issues that you don’t have good understanding of. I have seen this on many comments by bloggers on LT. MCA is not managed by government. It’s the American government. So GRZ has not say on the contractor and handling of project money

  14. Supervisors are not appointed by the Donors. They were selected through a competitive
    procurement process.

  15. How many contractors are going to tender for the balance of work on the two terminated contracts? Is the process being handled properly ?

Comments are closed.

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