Govt blows a billion in project cost overuns
Government has spent close to P1 billion in cost over runs of road construction projects in the past 10 years, Minister of Transport and Communications Tshenolo Mabeo told parliament on Monday. The construction sum of all the 53 projects was over P4 billion ( P4, 353,418, 095.56), with the final sum paid amounting to over P5 billion ( P5,122,569, 599.86) thereby resulting in cost over runs of close to P800 million.
The highest project was awarded to Sinohydro at a value of P545,259,873.09 for the construction of Kang-Hukuntsi road. The final amount paid was P461,955,776.91 and the project was completed. The company which accrued the highest cost over runs is CCC at P244, 368, 096.96 in the construction of Western bypass-Metsimotlhabe road. The contract sum was P400 ,387,923.15 and the final cost was P644,756,020.09 with reasons advanced for the overrun being the extensive relocation of services.