Angola lacks financial resources to meet contractors’ requirements

18 January 2017

Angola’s Ministry of Finance lacks the financial resources to meet the price increase being demanded from provincial governments for some contractors to restart stalled public works, the Secretary of State for Treasury said on Monday.

Some contractors operating in Angola are demanding a review of their contracts for public works, specifically the cost of the work, arguing that costs have risen with the devaluation of the national currency, the kwanza, among other factors, such as inflation, according to Angolan news agency Angop.

Secretary of State Aia-Eza da Silva asked the provincial governments to find other forms of renegotiation for the resumption of several works included in the Public Investment Program (PIP), “given that the government has no financial resources to meet the demands made by the contractors.”

Aia-Eza da Silva, who was speaking during a seminar on the implementation of the State Budget for 2017, recalled that in 2016 a committee concluded that the economic changes occurred since contracts were signed meant that in some cases costs had doubled.

The State Treasury secretary reiterated that the Ministry did not have the resources to meet all demands presented and, admitting that this is a “very delicate” process, called for negotiation as a way to get stalled public works going again.

In June 2016, the Angolan government approved changes to contracts with some construction companies to amounts converted at the prevailing exchange rate on the signing date. (macauhub)