THE Rural Energy Agency (REA) has issued a six-month ultimatum to all contractors implementing its projects in various parts of the country to complete them or else stern measures will be taken against them.
REA Acting Director General, Amos Maganga said they would not hesitate to terminate contracts with contractors, who would fail to deliver in accordance with the conditions and terms of the agreement by December this year.
He said the termination of the contracts would also be instituted together with the companies being required to pay all costs caused by delays in connecting power to the people.
Mr Maganga issued the directives during a meeting, which involved members of the REA Board of Directors and contractors implementing REA III phase I projects and companies supplying equipment needed for the project.
He said through the meeting they had resolved that REA III phase I projects should be completed in December this year and use the remaining six months to work on minor faults of the projects.
"Under the current plan the projects are supposed to be completed between May and July next year, but we have agreed that the contractors and suppliers of the equipment to work day and night to complete the projects by December this year and the remaining time be used for working on minor errors," he insisted.
"We have also been holding meetings with underperforming contractors and fortunately they have started improving their performance.”
He noted that it was clear for those contractors, who thought they would not complete the work by December this year that government through REA would terminate their contracts.
Mr Maganga added that they would not only terminate their contracts, but also report them to other respective authorities so that they would be blacklisted from being given other projects.
He said the companies would also be required to pay compensation for delaying to connect power to Tanzanians.
Mr Maganga called upon the contractors to reorganise because it was not only a matter of terminating contracts, but also there were consequences for them.
“However, at the moment the government is implementing a huge REA project costing 1.2tri/-, where 3,559 villages will get electricity with over 300,000 customers, who will benefit,” Mr Maganga added.
He explained that they had met with contractors implementing the projects and companies that produced equipment and reminded them what they were obliged to fulfil.
Meanwhile, REA chairman Michael Nyagoga said they had met with stakeholders to identify challenges facing them in the implementation of the projects.
“Most of the challenges identified are within their capacity and the main one is the understanding of the BOT bonds,” he explained.