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Construction of the K300 million Limbe-Midima Road was last Friday abandoned because of failure by government to pay the contractor, Mota & Companhia.
“We have suspended construction of the road because of lack of payment. The clients are not honouring their responsibility,” Gilberto Rodrigues, Managing Director for Mota & Companhia said yesterday.
He said his company will only continue constructing the road after the issue is fully resolved.
Rodrigues did not rule out the contract sum escalating should government delay in effecting payment.
“It depends on the time the client makes a decision to make the payment. If they delay, we’ll use provisions in the contract agreement,” he said.
Mota & Companhia started constructing the Limbe-Midima 20.5 kilometre road in June this year and was scheduled to complete construction work by February next year.
“We have so far been on track and were going to finish the road according to the agreed dates,” Rodrigues said.
In an interview on Monday, secretary for Works and Public Transport Francis Chinsinga said he was aware there were some funding problems in constructing the road which starts from Bangwe in Blantyre ending at Choda near Mikolongwe farm.
“I know the contractor has been asking for some payment. But it was not as serious. I also know that is being sorted out. We are sorting out payment with Treasury,” Chinsinga said.
National Roads Authority (NRA) general manager Dauphin Makako said on Monday that he was not aware of the development because he had been away.
“But according to the contract agreement— the contractor, in as far as operating procedures are concerned— is supposed to give a 28-day notice before suspending work. If that did not happen, then there’s a breach of contract. We will be advising Treasury accordingly,” he said.
But Rodrigues said all procedures have been followed “only that there is a lot of confusion”.
Treasury officials were not available to comment on the issue yesterday.
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