Bukoba — THE Minister for Works, Abdallah Ulega, has ordered the immediate initiation of procedures to terminate the contract of a Chinese construction firm, Shandong Luquiao Group, over poor performance on the construction of the Omurushaka-Kyerwa road in Kagera Region, valued at 95bn/-.
The minister gave the order during a meeting with residents of Kyerwa District, while inspecting the progress of the 50-kilometre road project, and also directed that the company be blacklisted from future road construction projects in Tanzania due to its unsatisfactory record in the execution of assigned works.
The project, which is fully funded by the government, has currently achieved only 5.43 percent implementation, lagging behind schedule by 46.26 percent, compared to the planned progress of 51.69 percent.
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According to the Tanzania National Roads Agency (TANROADS), the contractor has already been paid more than 9bn/-, but the project has so far reached only five percent completion, despite an expected progress of at least 50 percent at this stage.
Additionally, Mr Ulega instructed TANROADS to urgently seek a capable local contractor to carry out temporary rehabilitation works within one month to restore transport and logistics services in the area.
Speaking at the meeting, Kagera Regional Commissioner Fatma Mwasa said the contractor has also been underperforming in other projects in the region, including those under the Tanzania Rural and Urban Roads Agency (TARURA), and advised the government to terminate all related contracts and deny the firm future tenders.