02 Mar 2018 15:50pm
WINDHOEK, 02 MAR (NAMPA) Work stoppage at the Ministry of Home Affairs and Immigrations new headquarters in Windhoek due to budget cuts could cost Government an extra N.dollars 32.5 million.
This was revealed by Minister of Works and Transport John Mutorwa in the National Assembly (NA) on Thursday.
The anticipated extra estimated costs that will accrue as a result of work stoppage due to budget cuts for the project are N.dollars 32 544 171.80, Mutorwa said.
This figure could increase if the project is delayed further due to the escalation of prices and all specialised work that are yet to go out on tender.
These include the installation of the private automatic branch exchange (PABX) telephone system, joinery, balustrading, signage and landscaping.
Mutorwa was responding to queries by Swanu of Namibia parliamentarian, Usutuaije Maamberua.
When broken down, the extra construction costs that are expected to accrue include the extension of time claim (preliminaries and general items) which could cost the State N.dollars 1 418 010.39 from 22 June 2018 to 06 August 2018.
In addition, the extension of time claim on preliminaries and general items could escalate to N.dollars 22 861 094.38 from 07 August 2018 to May 2020, the ministrys projections indicate.
Interest on late payments to the contractor is N.dollars 8 265 067.03.
The anticipated cost is inclusive of value added tax, Mutorwa noted.
He did not indicate when work on the building in Windhoek North residential area is expected to re-commence.
The state-of-the-art headquarters initial cost was N.dollars 1 billion.
This makes it one of Governments most expensive properties, alongside the N.dollars 400 million Namibian Police Force headquarters in Ausspannplatz and the N.dollars 400 million State House administrative building.
A total of 570 capital projects were earmarked for implementation during the 2017/18 financial year, but work on 320 of these projects has been stopped at various phases.
In all these stages, Government has incurred expenses for work done by consultants.