REA to revoke contracts for underperformers

REA’s Board Member Mr Styden Rwebangila

RURAL Energy Agency (REA) has threatened to revoke the tasks of any contractor awarded construction of the rural electricity infrastructure across the country.

The warning came after the REA Board toured some of the agency projects in Morogoro and found out that HNXJDL Company awarded a 46bn/-contract to build rural electricity infrastructure for 146 villages in the region implemented the project in merely 36 villages.

The Chinese-based firm, HNXJDL Company, only managed to execute the contract by a quarter while the project duration ends late next month.

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REA’s Board Member Mr Styden Rwebangila told a meeting that brought together various energy stakeholders, including Members of Parliament (MPs) from  Morogoro, contractors and TANESCO and REA that the firm in 18 months managed to implement merely 27 per cent of the project.

“HNXJDL entered into an agreement to construct electricity infrastructure in six districts of Morogoro, close to 18 months and the firm had implemented 27 per cent only of the tender requirement,” said Mr Rwebangila.

The projects are in Gairo, Kilombero and Kilosa. The cost of the project was 26.6bn/- while for Malinyi, Mvomero and Ulanga was 20.9 bn/-.

Mr Rwebangila said REA is pondering allocating some of the remaining works to other contractors to help speed up the project implementation pace.

“We have agreed to reduce HNXJDL work by at least 50 per cent instead of granting him additional six months extension as he requested,” Mr Rwebangila said.

REA Project Manager, Eng Romanus Lwena said despite the weakness of the Chinese contractor for failing to complete the work on time, another contractor, STEG Company from Tunisia operating in Simiyu and Morogoro was going according to the plans.

The STEG Company was building infrastructure in 83 villages and implementation was completed at 23.6bn/-.

Malinyi Constituency MP Antipas Mgungusi said out of 33 villages, 32 were connected to electricity in the first phase.