Portuguese company fined for not observing contract clauses in Mozambique

10:48, July 05, 2010      

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Tamega, a Portuguese building company, has been fined for not observing contract clauses concerning deadlines in the rehabilitation of Mozambique's main north-south highway.

The Mozambican News Agency (AIM) quoted Minister of Public Works and Housing Cadmier Muthemba as saying on Sunday that Tamega is rehabilitating hundreds of kilometres of the road running through the central province of Zambezia.

The work was divided into four stretches.

The northern most stretch, which is from Alto Molocue to the Ligonha river, was completed by the Italian company CMC, and Tamega proved able to deliver the southern most stretch from Namacurra to Mocuba.

But the two intermediate stretches from Mocuba to Nampeva and from Nampevo to Alto Molocue were also delivered to Tamega and it has utterly failed to comply with the contract.

Muthemba said that Tamega disappeared from the site and was unable to comply with the contract.

The minister said the Mozambican government will thus impose the penalty clause in the contract worth between 10 to 20 million U.S. dollars.

The work abandoned by Tamega should have been completed in 2008.

The Public Works Ministry has now hired CMC to complete the job, which should be finished later this year.

Source: Xinhua


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