Gambiaj.com – (BANJUL, The Gambia) – The Government has failed to confirm whether liquidated damages have been paid over delays in the implementation of the Gambia Electricity Restoration and Modernisation Project (GERMP), despite a parliamentary recommendation that the contractor be held financially accountable.
The issue was raised by the Member for Brikama South during Monday’s sitting of the National Assembly, following the Minister of Petroleum and Energy’s response to findings from the 2023 audit of electricity projects implemented by the National Water and Electricity Company (NAWEC).
The lawmaker questioned why the Minister’s response had not addressed the audit recommendation on liquidated damages, noting that the GERMP had reportedly exceeded its agreed completion timeline by more than two years.
He asked Minister of Petroleum and Energy Nani Juwara to clarify whether the contractor had paid the liquidated damages recommended in connection with the prolonged delay.
In response, Minister Juwara said the issue was “controversial” and could ultimately have to be resolved through arbitration.
He explained that the project had not yet been fully closed, making it difficult for him to confirm whether any liquidated damages had been paid.
“I cannot confirm as it stands whether it is paid or not paid by the contractor, but I can find out,” the minister told the Assembly.
The exchange has raised fresh questions about the enforcement of financial penalties when contractors fail to meet agreed deadlines on publicly funded infrastructure projects.
It also leaves unresolved whether the Government has recovered or is actively pursuing compensation for the delays under the terms of the project contract.
The Minister’s commitment to establish the status of the liquidated damages could provide Parliament with further clarification on whether the contractor has been held financially responsible for the delay.
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