The President of Angola has authorized financial adjustments for six major public works projects across various provinces in the country. This decision was made due to an "abnormal and unpredictable" increase in material and labor costs, ensuring the continuity of the projects. The move comes in response to complaints from the contracting companies, aiming to restore the economic and financial balance of the projects.
According to the document, the decision was motivated by an "abnormal and unpredictable" change in circumstances at the time of the original contract signing. This led to a severe increase in execution costs, driven by rising labor and raw material costs, altering the initial scope of the planned work. The financial adjustments will be formalized through contract addenda, including the legal rate of Value Added Tax (VAT).
The adjustments cover road and housing infrastructure in Lunda Sul, including the 60 km Saurimo Circular Road (lot 10), which will receive an increase of over 9.5 billion kwanzas due to additional work. In Huambo and Huíla, the construction of the Cuima/Chipindo section of National Road EN 120 (56 km, including bridges) will receive a reinforcement of 7.39 million euros.
In Zaire, the costs for supervising the rehabilitation of EN 120 have been adjusted to 2.05 billion kwanzas (Mpala/Nóqui section) and 1.78 billion kwanzas (Lucossa/Mpala section). In Uíge, the construction of 500 social housing units and related infrastructure will be set at a global value of 37.9 million dollars. In Cabinda, the construction of 120 social apartments in the Buco Zau municipality will see a price revision of over 10.8 billion kwanzas.
The President has delegated full powers to the Minister of Public Works, Urbanism, and Housing, with the authority to subdelegate, allowing for all necessary decision-making and approval acts to ensure the projects' continuity. This move aims to prevent interruptions in the ongoing projects.
The projects affected by the financial adjustments are spread across several provinces, including Lunda Sul, Huambo, Huíla, Zaire, Uíge, and Cabinda. These projects involve road and housing infrastructure, social housing units, and rehabilitation works. The adjustments aim to ensure the completion of these critical projects.
The financial adjustments are a response to the current economic situation, characterized by rising costs of materials and labor. The President's decision will enable the continuation of these vital projects, which are essential for the country's development and growth. The projects' successful completion is expected to have a positive impact on the local communities and the economy as a whole.
Key points
- President of Angola authorizes financial adjustments for six major public works projects
- Adjustments made due to abnormal increase in material and labor costs
- Projects span across several provinces, including Lunda Sul, Huambo, Huíla, Zaire, Uíge, and Cabinda
