Budget cuts halt construction, costs escalate
Work stoppage at the Ministry of Home Affairs and Immigration’s new headquarters in Windhoek due to budget cuts could cost government an extra N$32.5 million.
This was revealed by the new works minister John Mutorwa in the National Assembly (NA) on Thursday.
“The anticipated extra estimated costs that will accrue as a result of work stoppage due to budget cuts for the project are N$32 544 171.80,” Mutorwa told the house.
This figure could increase if the project is delayed further due to the escalation of prices and all specialised works that are yet to go out on tender.
These include the installation of the private automatic branch exchange (PABX) telephone system, joinery, balustrading, signage and landscaping.
Mutorwa was responding to queries by Swanu of Namibia parliamentarian, Usutuaije Maamberua.
When broken down, the extra construction costs that are expected to accrue include the extension of time claim (preliminaries and general items) which could cost the State N$1 418 010.39 from 22 June 2018 to 6 August 2018.
In addition, the extension of time claim on preliminaries and general items could escalate to N$22 861 094.38 from 7 August 2018 to May 2020, the ministry’s projections indicate.
Interest on late payments to the contractor is N$8 265 067.03.
The anticipated cost is inclusive of value added tax, Mutorwa noted.
He did not indicate when work on the building in the Windhoek North residential area is expected to re-commence.
The state-of-the-art headquarters’ initial cost was N$1 billion.
This makes it one of government’s most expensive properties, alongside the N$400-million police headquarters in Ausspannplatz and the N$400-million State House administrative building.
A total of 570 capital projects were earmarked for implementation during the 2017/18 financial year, but work on 320 of these projects have been stopped at various phases.
In all these stages, government has incurred expenses for work done by consultants.
NAMPA
This was revealed by the new works minister John Mutorwa in the National Assembly (NA) on Thursday.
“The anticipated extra estimated costs that will accrue as a result of work stoppage due to budget cuts for the project are N$32 544 171.80,” Mutorwa told the house.
This figure could increase if the project is delayed further due to the escalation of prices and all specialised works that are yet to go out on tender.
These include the installation of the private automatic branch exchange (PABX) telephone system, joinery, balustrading, signage and landscaping.
Mutorwa was responding to queries by Swanu of Namibia parliamentarian, Usutuaije Maamberua.
When broken down, the extra construction costs that are expected to accrue include the extension of time claim (preliminaries and general items) which could cost the State N$1 418 010.39 from 22 June 2018 to 6 August 2018.
In addition, the extension of time claim on preliminaries and general items could escalate to N$22 861 094.38 from 7 August 2018 to May 2020, the ministry’s projections indicate.
Interest on late payments to the contractor is N$8 265 067.03.
The anticipated cost is inclusive of value added tax, Mutorwa noted.
He did not indicate when work on the building in the Windhoek North residential area is expected to re-commence.
The state-of-the-art headquarters’ initial cost was N$1 billion.
This makes it one of government’s most expensive properties, alongside the N$400-million police headquarters in Ausspannplatz and the N$400-million State House administrative building.
A total of 570 capital projects were earmarked for implementation during the 2017/18 financial year, but work on 320 of these projects have been stopped at various phases.
In all these stages, government has incurred expenses for work done by consultants.
NAMPA
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