The government of Angola has created an inter-ministerial committee to assess the impact of the devaluation of the national currency on public works contracts in progress, under a joint order from three ministers.
The order signed by the Minister of Finance, Armando Manuel, Minister for Planning and Regional Development, Job Graça, and Minister for Construction, Waldemar Pires Alexandre further provides that the Commission propose “sustainable corrective measures” by the end of June.
The joint order of 27 May states that “in the current economic context some public works contractors have shown certain financial constraints based on the devaluation of national currency,” which “could have an impact on the partial implementation of some contracts.”
The situation affects, among other things, public works contracts awarded in national currency, which are now far removed from economic reality taking into account the added costs, for example, of importing building materials or equipment, compounded by delays in the payment of such works, by the State. (macauhub/AO)