... 2012 sewerage system repair cost nearly doubles

PAMELA MONROE Ellis, the auditor general, highlighted a case where the National Water Commission (NWC) entered into an emergency contract for an estimated cost of $745 million in November 2012 to address the unsanitary public-health condition and overflow of untreated sewerage within the communities of Majesty Garden, Seaview Gardens, and Riverton City in the Corporate Area.

The project was scheduled to be

completed in 24 months. However, with 89 per cent of the contract sum disbursed as at August 2013, and only 17 per cent of the physical work completed, the contract amount was increased to $1.38 billion and works extended by 18 months.

“NWC paid $1.25 billion to the contractor, reflecting an increased cost of 68 per cent over the original estimate. This additional cost on the contract resulted from poor scoping as NWC indicated that the original estimates did not include the need for ‘special and community security, professional fees, as well as emergency cleaning’.

“We expected that these factors would have been considered in the planning process to ensure smooth implementation of the contract to ensure value for money,” argued Monroe Ellis.

She recommended that the NWC strengthen its scoping and implementing of contracts to identify critical elements for the successful implementation of projects and the achievement of contract objectives.

And the NWC should also monitor contracts throughout implementation to minimise losses from incomplete projects.