A hard day’s work

By
Nelson Moura

The government and the contractor of the construction works of the Light Railway Transit (LRT) depot superstructure in Taipa have already terminated their contract. Upon settlement, the overall expenditure of the contract is MOP85 million, according to the government’s Transportation Infrastructure Office (GIT).
The contract for the construction of the LRT depot in Taipa was signed in 2009 with a consortium comprising Mei Cheong and Top Builders. The works involved a payment by the government of MOP555.1 million over four years.
In a written email reply to Business Daily’s enquiry, upon settlement the overall expenditure of the contract is MOP85 million (US$10.6 million), ‘including the payment of the completed works in the initial period, as well as the works that had been carried out and not yet paid [for], materials that had been purchased, penalty and advance payment through the termination agreement.’
The agreement also covered the withdrawal and return of the construction site and termination of all existing litigation, eliminating lengthy judicial procedures, according to GIT. Business Daily has contacted both Mei Cheong and Top Builders seeking comment, but neither was reachable by the time the story went to print.
Secretary for Transport and Public Works Raimundo Arrais do Rosáriohas commented recently that the serious delay in the construction of the superstructure of the LRT Depot is the major factor affecting the Taipa route of the project. He also said that if an agreement was not achievable that the matter would be taken to court. Now, after months of negotiation, the situation, it seems, is resolved.
GIT added that at the moment the government is reviewing the design of the LRT depot superstructure and making necessary adjustments according to the site situation, with re-tender of the construction works expected to be carried out in the second quarter of this year.
Initially, in October 2009 the Macau LRT plan declared that the project would be completed in 2014 at a cost of MOP7.5 billion. However, according to the Third Special Audit Report on the First Phase of the Light Rail Transit System published by the Commission of Audit published in January 2015, the indication is that there is a severe delay in the project and that it will substantially surpass the budget reviewed in 2013, which estimated a cost of MOP14.27 billion.