Construction of 8,000 houses: Advance of 25% to 14 contractors

11 months, 2 weeks ago - May 11, 2023

A total amount of Rs 5.4 billion has been granted to contractors engaged in the construction of 8,000 units of social housing even before the start of work.

This was revealed by Member of Parliament Osman Mahomed, who questioned Deputy Prime Minister (DPM) and Minister of Housing, Steve Obeegadoo. The latter responded that this decision was made so that the project could move forward, and on the advice of experts.

Steve Obeegadoo recalled that the government is committed to building 8,000 social housing units at a cost of Rs 2.7 million per unit. Discussions had been initiated with the major contractors, with a view to presenting the project to them. The call for tenders saw the participation of 19 bidders registered with the CIDB, 14 were selected. Because the contractors had to complete the projects within the prescribed time and according to the indicated standards, the National Social Living Development (NSLD), decided to advance them an amount of 25% of the project. A technical opinion had been obtained beforehand. The Letters of Intent sent to the contractors mention this deposit.

Osman Mahomed pointed out that a maximum of 10% advance is applied to all contracts awarded by the government, as recommended by the Federation of Consulting Engineers. In this case, there was an additional 15%. “It is a total amount of Rs 5.4 billion advanced to 14 contractors for the construction of 8,000 units. Has NSLD ensured that all contractors are eligible to receive such money? Especially since some have not submitted their latest financial statements to the Registrar of Companies, ”wonders the deputy.

To this, the DPM and Minister of Housing replied that the NSLD has made the necessary arrangements, on the advice of the Ministry of Finance. He clarifies: “I am not the one who makes the decisions. I am a minister, I have a right of inspection, but I do not decide for the NSLD. The question for the government was whether we could go ahead with this project to build 8,000 social housing units, despite the difficulties caused by the Covid-19 pandemic and the war in Ukraine, which caused a 30% increase in costs. "

Not only was it a question of resources for the government, said Steve Obeegadoo, but also those for whom these accommodations were intended. “If we had scrupulously observed the procedures in force before Covid-19, with the engagement of consultants and so on, as well as a 10% advance, the project could not have materialized. "

He adds that the priority was to provide decent housing to those affected. This is why the government has decided to grant some assistance to the contractors, in order to allow the project to progress. The 25% advance was granted against a bank or insurance company guarantee.

Osman Mahomed returned to the fact that the government could have granted a 10% advance and increased as the project unfolds, to ensure that a contractor does not go away with the money. The DPM clarified that the experts judged the approach taken to be the best.

Text by Le Mauricien

We also recommend

The Prime Minister Announces the Granting of Rs 13,500 to Each Elderly Person

In his speech to the people on the occasion of the National Day, the Prime Minister announced that from the beginning of April, each elderly person will receive an old-age pension of 13,500 rupees. He added that it was a promise he made and kept.

1 month, 1 week ago

Cyclone Belal: the country confined from 8 p.m. this Monday

Following the Class 3 cyclone warning issued this afternoon, we will be in lockdown from 8 p.m. this evening until tomorrow, Tuesday January 16 at noon.

3 months, 1 week ago

Passeport : le Backlog inquiète ceux qui veulent voyager

Avec la réouverture des frontières et le retour à la normale de la desserte aérienne, les Mauriciens reprennent goût au voyage. Sauf que pour prendre l’avion, il ne suffit pas de payer le billet.

1 year, 5 months ago

Taux de Change : Dépréciation de 40% de la roupie depuis 2014

Le ministre des Finances, Renganaden Padayachy, a déclaré qu’il compte discuter de l’évolution du taux de change de la roupie avec la Banque de Maurice (BOM). Acculé par le député du MMM, Reza Uteem, il a concédé que depuis 2014, année de l’installation au pouvoir du MSM, la roupie a connu une dépréciation de l’ordre de 40%.

2 years ago

Pénurie D’huile : Un ‘Panick Buying’ Inévitable !

Malgré la demande aux consommateurs de ne faire du ‘Panick Buying’, les étales d’huiles des supermarchés sont vides et certains petits commerçants en profitent pour rajouter quelques roupies de plus sur les bouteilles qui restent !

2 years, 1 month ago

Fête de l’Indépendance : la cérémonie de lever du drapeau aura lieu à Réduit

La cérémonie de lever du drapeau se tiendra le samedi 12 mars à midi à la State House, Réduit, pour marquer le 54e anniversaire de l’indépendance et le 30e anniversaire de la République.