Yaoundé - 09 June 2023 -

Chad’s Encobat is about to lose a CFA26bn deal in Cameroon

Chad’s Encobat is about to lose a CFA26bn deal in Cameroon
  • Comments   -   Wednesday, 24 May 2023 16:51

(Business in Cameroon) - The Chadian construction company Encobat is about to lose a deal worth CFA26.5 billion in Cameroon. According to information reported by Cameroon Tribune, the Ministry of Public Works decided to terminate the contract for the construction of a 33 km road connecting Douala to Bonépoupa in the Littoral region. The decision will be officially inked in the coming days, we learned.

"A good performance could not be achieved given the lack of clear internal organization within the company and the absence of quality human resources, even if the material resources are available. Consequently, in the coming days, after serving the company with a notice of failure, we will pay for all the completed services, terminate the contract, and recruit another company," Emmanuel Nganou Djoumessi said following a work site visit on May 23.

According to data from the Ministry of Public Works, the project (overall valued at CFA28.5 billion, including about CFA2 billion for supervision) currently shows a progress rate of 41% for a time consumption of 101.85%. The deadline was initially set for December 31, 2022.

Encobat cites non-payment of certain services as one of the reasons for the delay. However, the ministry stressed that out of the 25 invoices totaling CFA13.6 billion issued by the company, the unpaid amount is just CFA2.4 billion. Therefore, the Chadian company has already received CFA11 billion, representing a disbursement rate of over 41%.

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