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]