Angolan government says it is saving money by reformulating contracts

21 May 2019

The Angolan state is expected to save US$380 million by reformulating contracts for the construction of the Corimba Coastal Road, a project initially budgeted at US$1.3 billion, the construction and public works minister said on Monday in Luanda.

The contracts for the execution of the project were cancelled by the President of the Republic, João Lourenço, through Presidential Order No. 72/19, of 15 May, for “significant reasons,” including as over-billing, “with services that were expensive for the State.”

Minister Manuel Tavares de Almeida also said that the prices presented were higher than those usually charged in the Angolan market for the execution of this type of work, “due to the participation of the Urbinveste and Landscape companies,” according to the Angop news agency.

The contract for dredging, land reclamation and protection of the coast had been signed with the companies Urbinveste and Van Oord Dredging and Marine Contractors BV, for a total value in kwanzas equivalent to US$615.2 million.

The second contract, for the design, construction, execution and completion of the infrastructure, had been signed with Landscape – Promoções e Projectos Imobiliários and the China Road and Bridge Corporation (Angola), with an overall value of US$690.1 million.

The President of the Republic authorises the Minister of Construction and Public Works to renegotiate and sign new contracts with Van Oord Dredeing and Marine Contractors BV and the China Road and Bridge Corporation (Angola) in a diploma dated 15 May, “with a reduction of the limits of the values of the initial projects, through a simplified contracting procedure.” (Macauhub)

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