HON. MUTSEYAMI: Thank you Madam Speaker. May the Hon. Minister explain to the House as to what caused the additional USD26 million, bearing in mind that the USD88 million had been budgeted for to cover the whole construction of the interchange. Thank you.
THE MINISTER OF FINANCE, ECONOMIC DEVELOPMENT AND INVESTMENT PROMOTION (HON. PROF. M. NCUBE): Thank you Madam Speaker. The cost of relocating, for example, relocating some of the residents that we relocated to create space, for developing this piece of infrastructure. There were some unexpected escalations of that cost, which then pushed us towards increasing the budget by another USD26 million that I have referred to. There are just unforeseen project variations. It happens in most projects. Projects do overrun. It is normal but the question is, are you able to negotiate with the contractors so that the costs do not run away beyond affordability.
However, the cost of relocating families, households, was quite onerous and that caused the budget to go beyond what was initially budgeted. I thank you.
HON. MUTSEYAMI: I am seeking a point of clarity Mr. Speaker Sir.
THE TEMPORARY SPEAKER (HON. J. TSHUMA): I will come to you.
HON. MUTSEYAMI: Just following up on the question that I have just given.
THE TEMPORARY SPEAKER: Are you the one who asked the question?
HON. MUTSEYAMI: Yes, I asked a supplementary question, then the Hon. Minister has just responded. I am seeking clarity on the response.
THE TEMPORARY SPEAKER: So, you are trying to…
HON. MUTSEYAMI: No, I am not trying anything.
THE TEMPORARY SPEAKER: Alright, you may go ahead.
HON. MUTSEYAMI: Thank you very much Hon. Speaker. My point of entry on clarity to the Hon. Minister. Can you substantiate to the House as to how this supplementary USD26 million would just come about when the budget had already been sorted, then we have extra figures to a situation of adding USD26 million? How do you account that Hon. Minister?
HON. PROF. M. NCUBE: Thank you very much Mr. Speaker, sir. Well, cost overruns are never planned up front. They occur during the implementation of a project. That is when you discover that you have got cost overruns. However, you negotiate a movement of people, resettlement, relocation of families during the implementation of the project. You can never plan for those up front and say, well, it is all within budget. There will be budget overruns…
THE TEMPORARY SPEAKER: Order! Hon. Minister. Hon. Members on my left. One of your Hon. Members asked for some clarity and I think it is only fair that you listen so that the clarifications can be properly heard. Can we have order, please? Hon. Minister, please continue. Hon. Minister of Finance please may you proceed.
HON. PROF. M. NCUBE: Thank you Mr. Speaker. I think it will also assist the House to give a breakdown of this $88 million. Then I will go back to the 26 million. Also, the same question has also been presented to the Minister of Transport. We will repeat the answer when his question is due to be answered. We spent $65 million on things such as, for instance, contractors’ establishment on site, accommodation of traffic, the drains and just picking up a few things, pitching storm rate protection against erosion, stabilisation, prime court, road signs and foundation structures so the hard infrastructure engineering part was $65.5 million.
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