Africa-Press – Zambia. In July 2017, Government signed a contract with a Chinese Parastatal giant, China Energy Engineering Group Hunan Electric Power Design Institute for an export credit Finance of the FTJ University.
This was after the fourth iteration approval meant to rescope the project. After this the Contract price jumped from $157 million to $225 million. The Contract signed between the Mi istry of Education and China Energy Engineering Group Hunan Electric Power Design, was for the design and build of the University.
“Whereas the Employer desires that the works known as Design and Build of FTJ Chiluba University should be executed by the Contractor and the Contractor has agreed to execute and complete these works and to remedy any defects therein in the sum of $225 million”, reads the contract.
THE $33.7MILLION ADVANCE PAYMENT The Contract provided for the payment of advance payment of 15% of the $225 million. 15% of $225million amounts to $33.7million.
The Contract provides that the Advance Payment was for the Design and Mobilisation of the project. “The Employer shall make an advance payment as an interest-free loan for mobilisation and design when the contractor submits a guarantee”
DESIGN The design involved architectural designs, with engineers: structural, electrical, and mechanical with the Quantity Surveyor costing the entire project. MOBILISATION
Mobilization involved for the contractor to move on site, set up temporal site offices, canteen toilets, store rooms, boundary fences, boreholes, water tanks, etc.
As stated, the advance payment of $33.7m was to provide for the designs and mobilisation as shown by the Interim Payment Certificate (IPC) No. 1 and was not for the construction of the University.
This was later amended to cater for the Itumpa University. Infact for the works done by the contractor at the site as shown in the Interim Payment Certificate No.2 (IPC) and widely shown on Prime TV video amounts to only $58,000.
The IPC for the works issued on 19th September 2018 remains unpaid. The works seen at sight have not been paid for. The Project was to be financed by Export Bank of China while Zambia was obkiged to pay the 15% counter-part funding.
In 2020, due to the debt burden and debt distress the country was facing, the university project suffered a set back when Government abandoned all projects that were below 80% completion.
Further all piped funding and credits to Zambia were cancelled. The FTJ Chiluba University and Itumpa University in Northern Province awaits Government pursuit of the export credit loan to complete the projects. The Contractor’s mobilisation assets remain on site although doors, windows, pumps and other utilities have been vandalized or stolen.
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