Categories: Stories

Alpha gets reprieve, but . . .

Alpha Construction, whose contract to build 532 houses in Cowdray Park had been terminated by the Bulawayo City Council following its failure to fulfil the deal, has been given a reprieve to complete the project by the end of this year.

But this is on condition that the company secures a performance bond of $2.2 billion before it moves back to the site.

Alpha also has to provide the council with the list of people it allocated the 532 stands together with their housing waiting list forms.

The council terminated Alpha’s contract on October 6 last year, citing its failure to complete the project on time and several other anomalies that included multiple allocations of stands, as well as houses encroaching onto other stands.

The council also demanded $1.1 billion from the company so that it could rectify the mess. This amount was supposed to be paid by December 2 last year.

Alpha was awarded the contract in July 1996 but the agreement was only signed in February 2001. The council gave the company two years to finish the project but it has not completed it up to now.

According to the latest council minutes, the municipality held roundtable conferences with Alpha and the two parties had agreed that Alpha should secure a performance bond of $2.2 billion before moving back to the site and that it should complete all outstanding works by December 31 2005.

Alpha had to submit its programme of works to the director of engineering services by June 24.

It also had to submit the list of people allocated stands to the director of housing and community services by the same date.

Alpha had by last week not yet submitted the $2.2 billion performance bond, which is a prerequisite for it to resume work.

 

 

(41 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024