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Mbarara, Uganda | THE INDEPENDENT | The delayed completion of the Mbarara Central Market has been attributed to failure by the contractor to renew his performance guarantee with the Bank.
A Performance Guarantee is a contractors promise to complete the project undertaken. It is issued by an insurance company or bank to an employer on behalf of the contractor to guarantee the full and due performance of the works by the contractor as set out in the contract.
Last month, the government for the fourth time extended the deadline for completion of the market after the contractor failed to meet the agreed deadline.
The Local Government Minister Raphael Magyezi said that the contract was extended until the end of May 2021.
Construction of the 21 Billion Shillings market was in 2018 awarded to Roko Construction Company Limited under the World Bank Uganda Support to Municipal Infrastructure Development Program (USMID).
However, Daniel Kugumikiriza, the consultant engineers of the project, says that the government can’t provide funds for the completion of the market because the bank guarantee of the contractor expired and it is yet to be renewed. He says that once it is renewed it will enable the contractor to purchase construction materials.
Eng. Emmanuel Mwebaze the Contract Manager from the Ministry of Local Government says that they are optimistic that by the end of the fourth extension of the contract, construction will have been completed if the contractor renews his performance guarantee.
Stuart Kasibante, an engineer with Roko says that they are committed to complete the market once they get the financing.
Mbarara City Mayor Robert Mugabe Kakyebezi wants the government to engage the contractor so that constructions can resume.
In February Mbarara city council Authority said that it has lost 600 million shillings for the financial year 2020/21 due to the delay to finalize the construction Central Market.
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