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Yaoundé - 13 April 2024 -
Construction

Cameroon terminates major CFA4.7bn road contract in Eastern region due to delays, imposes two-year ban on consortium

Cameroon terminates major CFA4.7bn road contract in Eastern region due to delays, imposes two-year ban on consortium
  • Comments   -   Wednesday, 03 April 2024 04:12

(Business in Cameroon) - The contract signed in July 2022 with the Wambo and Gege Business Sarl consortium for the construction of the Bouam-Diang-Andom section (25.225 KM), in the Eastern region, has just been terminated by the Minister of Public Works, Emmanuel Nganou Djoumessi. The contract, worth CFA4.7 billion, was part of the Ministry of Public Works' public investment budget for the fiscal year 2022 and beyond

In a decision authorized by Emmanuel Nganou Djoumessi on March 22, 2024, this termination was deemed valid due to the regulatory threshold for delay penalties, inadequate mobilization by the provider, subpar performance, and a deficiency in project management and completion outlook.

As a result of this contract termination, the consortium will not be eligible to bid on any tenders in Cameroon for two years, as specified by the Minister of Public Works in his decision. Furthermore, the guarantees provided by the consortium for the contract will be mobilized for the administration's benefit, specifically for the payment of costs associated with replacing the contractor and for the damages incurred by the state. This includes the advance payment guarantee of CFA950 million and the final guarantee of CFA237.5 million underwritten by SAAR Insurance.

This contract was awarded to the consortium of Cameroonian companies in July 2022 following an emergency tender procedure, with a 12-month deadline to complete the work - a deadline that was not met, leading to the current termination.

This is the third contract terminated by the Minister of Public Works in a matter of months. As a reminder, the company Bofas had two contracts withdrawn between November 2023 and February 2024. Another contract was taken away from the company Super Confort in November 2023.

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