- Project costs could increase due to variations
GAZETTE REPORTER
The Ministry of Transport and Public Works has awarded contracts totalling P972,724,924.13 to three Chinese-owned companies since 2020, according to recent disclosures in Parliament.
Responding to an inquiry from the MP for Jwaneng/Mabutsane, Mephato Reatile, the Minister of Transport and Public Works, Eric Molale, detailed the projects and their respective costs:
Construction of Ministry of Finance Office Block in Gaborone
Awarded to Colic Construction in 2022. This project was valued at P141,993,216.14.
Minister Molale stated that a 30.84% share (P33,303,187.93) of this project was sub-contracted to a Batswana-owned company, primarily for brickwork.
The project began in August 2023 and is currently at 57% completion, slightly behind the projected 66%.
New Police Station in Letlhakane
This project was awarded in 2021 to a joint venture between Heli Construction and Engineering and Mido Construction. This project was valued at P155,000,766.65.
The joint venture was structured as a 50/50 partnership between a non-citizen company and a 100% citizen-owned company, thereby exempting it from the 30% sub-contracting policy.
This project started in August 2022 and is nearing completion at 96% against a target of 100%.
Mmandunyane-Shashemooke-Borolong-Chadibe-Mathangwane Road, Including Access Roads to Natale and Makobo
Awarded to Unik Construction (Pty) Ltd in June 2023. This project was valued at P675,730,941.34.
Minister Molale noted that the contractor has not yet engaged citizen sub-contractors as required by the Citizen Economic Empowerment policy.
The project is still in its early stages, and sub-contracting is ongoing, with final figures yet to be determined.
Addressing concerns about potential cost variations, Minister Molale stated that it is currently challenging to elaborate on any discrepancies between the contracted sum and the final sum due to the early stages of the projects.
However, he acknowledged the possibility of future variations, especially as two of the three projects are still underway.
To improve project management, Minister Molale announced that the ministry would implement a Project Governance Framework in the next financial year.
Meanwhile, Reatile had also inquired about the fulfilment of the 30% sub-contracting policy for Batswana-owned companies and sought a timeline for when data on the final project costs would be available.
Minister Molale highlighted the challenges in data retrieval due to COVID-19-related office closures but assured that the ministry is working to provide this information as soon as possible.