Payment delays cost government Sh1 billion in Mtwara airport

Mtwara. Payment delay to a contractor of Mtwara International Airport project has cost the government more than Sh1 billion.

The first phase of the Sh56.7 billion project is being implemented by a Chinese company now is estimated at 92 percent complete.

However, Tanzania National Roads Agency, (Tanroads) regional manager, Mr Dotto John said there have been payment delays which cost the government.

Speaking during a visit by deputy minister for Works and Transport Atupele Mwakibete, the Tanroads official said the delays occur when they submit payment request to the ministry where it takes two to three months.

“Once we approve and issue a payment certificate, goes to the ministry of Works and Transport, which forwards it to ministry of Finance and back via the same route. That process has been delaying payments,” said Mr John.

He explained that when the project time is extended, there are guarantees that need to be paid by the government to the contractor.

“At the moment, I cannot say the amount has increased due to the delays solely, but its more than Sh1 billion,” said Mr John.

So far, the contractor has been paid Sh37 billion, which is equivalent to 65 percent of the whole contract cost. Implementation of the first phase of the project has now reached 92 percent and is expected to be completed at the end of this August.

The main work remaining is install lights at the runways and fire facilities.

Nanyamba lawmaker Abdallah Chikota said that although they are satisfied with the project development, there is still a need for the government to speed up the remaining work.

“It is our hope that the government will look for funds to accomplish the second phase” said Mr Chikota. Mtwara legislator Hassan Mtenga said if the payment delay continued throughout the second phase, the project will cost the government more.

Rounding up his official tour, the deputy Mr, Mwakibete promised to work on the payment issues.

“I have made some follow ups and realized that the said certificate was written on May 17, 2022. I promise that within this July or August, it will be done depending on the system response,” said Mr Mwakibete.