23/10/2023
N$5.5 Million Shortfall for Union Street Rehabilitation
Leandrea Mouers
The Walvis Bay Municipality has reported a N$5.5 million shortfall for continuing the rehabilitation of Union Street. According to the latest council agenda, read by Richard Hoaeb, Chairperson of the Management Council in council chambers, a bid for the rehabilitation of Union Street closed on January 23, 2023.
"During the bid evaluation process, it was noted that the budget was inadequate, even though the Individual Procurement Plan (IPP) was approved by the Accounting Officer on October 9, 2022," Hoaeb explained.
The bid was intended to appoint a contractor for the rehabilitation of a section of Union Street, which would be the first road under the rehabilitation program the Municipality has embarked upon for 2023.
"J-Basement Construction Trading CC was appointed on February 20, 2023, for an amount of N$8,618,052.00 (excluding VAT), and the project commenced on June 28, 2023."
"The project has no margin for delays due to financial constraints since it is located within a residential built-up area. The project timeline, specifically the critical path, cannot be delayed due to a lack of funds from the Municipality of Walvis Bay. Hence, a proactive approach is needed to supplement the budget from which the contract is funded."
"Therefore, the council needs to acknowledge that the budget allocated for the Rehabilitation of Union Street was insufficient, and the available amount on this budget of N$3,596,640.00 will not be enough to successfully complete this project. Additionally, there is a shortfall of N$5,500,000.00 to complete this project."
It is recommended that the council approve the transfer of an amount of N$5,500,000 to Union Street from the following budgets: Walvis Bay Extension 19, where N$3,000,000.00 is available, and from which N$1,000,000.00 is to be transferred; Meersig Extension 3, where N$9,000,000.00 is available, and from which N$2,500,000.00 is to be transferred; Narraville Extension 10, where N$1,000,000 is available, and from which N$500,000.00 is to be transferred; Aquaculture Sites, where N$3,000,000 is available, and from which N$1,000,000.00 is to be transferred; and finally, from Kuisebmond Extension 15, where N$1,000,000 is budgeted and available, and from which N$500,000.00 is to be transferred.
Additionally, another shortfall of N$164,110.80 was recorded in the supply and delivery of two trucks for Parks and Cemeteries and for the Sport, Youth, Arts, and Culture sections of the municipality.
Hoaeb stated that the two sections were scheduled to receive trucks through the bid for the supply and delivery of heavy vehicles, which closed on June 27.
"After the bid evaluation process, it was noted that the two respective budgets were underfunded (N$700, 000) in comparison to the best-evaluated lowest bidder's offered price of N$864,110.80 (VAT excluded) per truck, resulting in a shortfall of N$164,110.80 each."
It is requested to transfer funds to supplement the underfunded projects from Replace Play Park Equipment-Parks, where an amount of N$200,000.00 was budgeted and is still available, and Upgrade of the Indoor Sport Complex, where an amount of N$2,000,000.00 was budgeted and is still available.
"The acquisition of trucks for both sections are of paramount importance as it will improve the general service delivery of refuse removal at public places and sports fields. Currently, each section has only one truck, which is insufficient to provide the required services."
