Home Zambia News GOVT terminates Chinese firm’s contract

GOVT terminates Chinese firm’s contract

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GOVT terminates Chinese firm's contract

GOVERNMENT has terminated a contract for Covic company limited working on the Luangwa district hospital for failure to perform according to contractual obligations.

The Chinese firm was awarded a contract to construct phase three of the district hospital but it has failed to make head ways to complete the project.

Minister of Housing and Infrastructure, Vincent Mwale, informed President Edgar Lungu in Luangwa district yesterday that government saw it fit to terminate the contract because the contractor had not shown seriousness.

Mwale said the contractor had not performed within the stipulated time, therefore, there was need to hold to it.

In fact we are even claiming some damages because this contractor has not completed the project on time, he said.
The minister said “We are in a hurry to ensure that we provide services to required and we will not allow contractors to delay progress.

“So in this case we decided to terminate the contract together Ministry of Health so that we get another contractor to complete the works,” he said.

As Government, Mwale said, would ensure that a new contractor was engaged to complete the project.

GOVT terminates Chinese firm's contract
Meanwhile President Edgar Lungu appealed to the authorities to ensure that routine maintenance was done.

The Head of State said maintenance was key in getting value to all the infrastructure being built across the country.

“Unless we maintain this infrastructure if not is futile because if we don’t maintain will found that the all infrastructure is damaged and then start to refurbish or construct it at a great cost,” he said.

Lungu said government would end up blaming contractors if the infrastructure was not maintained.