Africa-Press – Tanzania. THE government is mediating contractual dispute involving a local subcontractor, Bharya Engineering & Contracting Co Ltd (BECCO), against a Joint venture company of Arab Contractors and Elsewedy Electric (JVACEE), a lead contractor for the Julius Nyerere Hydropower Project (JNHP).
The JVACEE had subcontracted the BECCO to construct 77-kilometre road from Kibiti to the construction site of the JNHP. But, the two parties have since November last year entered into pay dispute, with BECCO now demanding 8.7bn/- overdue payment from JVACEE.
Since early this year their matter was presented and discussed at different level for mediation, including the Dar es Salaam Regional Commissioner’ office which then referred the matter to the Energy Ministry.
The latest meeting for mediation at the ministry was held this month, chaired by the Energy Commissioner Eng Felchesmi Mramba. The meeting was intended to close the matter amicably by reaching a consensus.
After the meeting, the government and senior officials from the two companies went to the site to physically verify claims made by the two parties.
Speaking in an interview with the ‘Daily News’ over weekend, Permanent Secretary of the Energy Ministry, Eng Leonard Masanja, said the ministry was still mediating the dispute as they seek to resolve the standoff amicably.
“We are now preparing a report for resolving that matter. We will release the report (once complete),” Eng Masanja stated.
Earlier, BECCO’s Executive Chairman Sarbjit Bharya Singh told the ‘Daily News’ that his company would seek court’s intervention to block vehicles of the JVACEE from passing on the constructed road until settlement of payment claims.
Explaining on the root of dispute, Mr Singh said in November, last year they submitted an invoice to JVACEE to claim 3.5bn/- for the construction works which included site clearance, road width leveling, excavation, supply and field surveys, excavation for drainage, detailed designs and others.
However, according to Mr Signh the JVACEE did not pay his company after the latter disagreed with the work performed at the road project.
The JVACEE was disputing quantities and measurements in the performed work by the BECCO at the site. He said the situation led to contractual dispute which has further delayed payments and thus attracted variation charges, making the debt to accumulate from 3.5bn/- to 8.7bn/- by this month. Mr Signh stated that they were demanding such increased amount for idle equipment and relevant costs together with bank charges accrued.
“I couldn’t pay my workers who participated in construction of this road project because of this delayed payment,” he said. Reached for comment, JVACEE lead contract administration engineer Abhishek Kashi Nath declined to comment on the matter saying only their client (government) can comment on it.
For More News And Analysis About Tanzania Follow Africa-Press
