MCA terminates two water supply contracts
By Staff Reporter
Millennium Challenge Account-Zambia has terminated two contracts worth US $52.3 million with Elevolution Engenharia (Elevo) of Portugal, under the Lusaka Water Supply, Sanitation and Drainage Project.
MCA said that the contractor was consistently failing to meet its construction targets and to remedy performance concerns.
MCA-Zambia director of communications and outreach, Dr John Kunda, confirmed the development in a press statement on Thursday afternoon, adding that Elevo had also not been compliant with the country’s labour laws.
“The underperformance by Elevo poses a risk of not completing the infrastructure works on schedule, thereby denying the residents of Lusaka the expected benefits of increased access and availability of clean water and proper sanitation,” Dr Kunda explained. “Elevo has also continuously failed to ensure quality work according to Contract specifications, including the reinstatement of public roads and private driveways. Further, Elevo has not been compliant with the labour laws of Zambia resulting in industrial unrest among its construction staff.”
He pointed out that MCA-Zambia was fully committed to ensuring that the two infrastructure contracts were delivered for the benefit of the people of Zambia and the expectation of the United States Government, through the Millennium Challenge Corporation (MCC).
“Elevo was contracted in February 2016 through a competitive and transparent procurement process to construct water supply and sewerage network in both Mtendere and Mtendere East. This included laying about 60 kilometers of water main supply lines and 82 kilometers of sewer lines, and select sewerage facilities in Salama Park and Chelstone,” the statement read. “In addition, Elevo was contracted to carry out works to replace old, leaking water pipes to reduce water losses in the existing network and to replace malfunctioning and obsolete water meters, in selected parts of Lusaka to improve accurate billing. MCA-Zambia reassures its various stakeholders of its unwavering commitment to ensure that the construction works are completed, in line with Lusaka Water Supply, Sanitation and Drainage Project objectives.”