Mbarawa suspends two contractors implementing water projects in Lindi, Kigoma regions

Dodoma. The minister for Water and Irrigation, Prof Makame Mbarawa, has suspended contracts with two companies that were implementing major water projects.

Prof Mbarawa announced the decision during a press conference held on Thursday, November 15 immediately after the morning Bunge session.

Speaking at the press conference, he named the contractors as the Overseas Infrastructure Alliance (India) Pvt Ltd that was contracted to implement a water project and environmental sanitation in Lindi and Spencon Services Limited that was implementing a water project in Kigoma Region.

Prof Mbarawa said the duo have run bankrupt to the extent that they are currently lacking financial capabilities to execute the projects.

However, in unexpected circumstances, the Overseas Infrastructure Alliance (India) Pvt Ltd has been allowed to continue with implementation of a water project in Chalinze, Coast Region.

Prof Mbarawa said the two contractors will not be allowed to implement the projects elsewhere in the country because they occasioned losses to the government and caused inconveniences to citizens.

“The project implemented in Lindi was supposed to be completed in March 2015, but it was extended to December 2015. But, as of today, only 92.3 per cent of the project has been completed after the company received Sh27.925 billion out of Sh30.389 billion stipulated in the contract,” said Prof Mbarawa.

He said Spencon Services had a similar contract, but only 87 per cent of the project has been implemented after receiving Sh39 billion out of Sh42 billion agreed in the contract.

Regarding the projects, he said the two other companies will be contracted to complete the job, noting that the government has taken all precautions to ensure the decision will not have negative effect to the nation.