REA saves K2.1m after contract termination
Published On June 18, 2014 » 2291 Views» By Moses Kabaila Jr: Online Editor » Latest News, Stories
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By CATHERINE NYIRENDA-

THE Rural Electrification Authority (REA) has saved K2.1 million following the termination of the Kang’wena grid extension project in Chingola, which was awarded to Plinth Technical Works Limited. This follows the failure by the contractor to complete the works within the stipulated time frame. REA managing director, Geoffrey Musonda said the authority would not hesitate to terminate contracts that were not concluded within the agreed time frame. He said the contract had been terminated due to poor workmanship by Plinth Technical Works Limited which prompted REA to take over the project at Kang’wena thereby saving K2.1 million. “The contractor was working on two contracts, the Kang’wena extension grid at K6 million and the Chimfunshi one at K7 million, however, the contract (Kang’wena) was terminated after the firm failed to conclude the works on schedule,” he said Mr Musonda said he was happy that REA managed to complete the abandoned works and advised consumers to ensure that they utilised the power in the area by coming up with viable businesses REA power distribution and development officer, Nathan Musonda told the board of directors that toured the projects in Chingola yesterday that REA used the recovered money from the project to buy materials in order to complete the project. Plinth Technical Works Limited was contracted last year to undertake the Kang’wena grid extension project in Chingola on the Copperbelt at a cost of about K5.9 million under a period of one year. “We want to ensure that projects are completed on time. You know that any delays cost money and as a country we are in a hurry to develop,” Mr Musonda said. REA board chairperson Jorry Mwenechanya assured the nation that his organisation would ensure that Zambians benefited from the rural electrification projects and that contractors not abiding to the terms of reference in contracts would not be tolerated.

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