Minister clarifies road tender
The Minister of Works, Transport and Infrastructure, Olo Fiti Vaai says no local company could fit the tender criteria as he cleared the air on awarding of the Cross Island Road project to a Chinese company.
The contract valued at over SAT$15 million was awarded to the China Civil Engineering Construction Corporation, which is a Chinese Government-owned State company. The project will start from Tanugamanono to Siumu after completing all the necessary documentation for the Tenders Board.
In an interview with ET Live, Olo said the tender criteria for such big projects were set by the World Bank and the Asian Development Bank which are funding the project.
He added that no local company met the requirements and criteria of the project given by the World Bank and the Asian Development Bank as they require the bidding companies to have at least US$5 million in their account.
"Such projects which are funded by the World Bank and the ADB, it is not the government that awarded these projects to the contractors. The accusations that the government is giving these projects to the Chinese companies are wrong," he said.
"The only thing our government does with huge projects like these which are funded by the World Bank, is the procurement process. That's the only responsibility of the government with these big projects but the rest is up to the banks with which company they choose for the contract after the tender process."
According to the Minister, the tender process is held internationally so any foreign country or company can make a bid.
He added that the tender was already awarded to the Chinese company before the new administration, Faatuatua i Le Atua Samoa ua Tasi (F.A.S.T.) took office.
"So when I came as the Minister, I asked the Cabinet if we can look at ways that could benefit our local companies from this project," he said on the program.
According to Olo, the project's USD$5 million criteria were reduced to USD$2 million so local companies could get the contract. However, he said even USD$2 million was too high for local companies.
Meanwhile, the Minister highlighted that he urged the successor of the Cross Island Road project, the Chinese company to use local companies as their sub-contractors so they could at least be a part of the project.
The Opposition questioned the Government's decision to award the multimillion-tala project to a foreign firm overlooking local construction companies.
Human Rights Protection Party (H.R.P.P.) leader and suspended Lepa M.P. Tuilaepa Sa'ilele Malielegaoi, criticised the Cabinet's decision in a press conference earlier this month.
He told reporters that the project for this road was approved by the former Administration for construction eight years ago.
"There was a signing ceremony in 2020 for the construction of the road and two contracts were on the Tenders Board for this project, one was the supervision contract which was already awarded to a company and when we were about to tender the construction contract, the Office of the Attorney General stepped in and halted it due to campaign policies for the 2021 General Elections," Tuilaepa said.
Lamenting the lost opportunities for local firms, the veteran politician said it is his belief that local construction firms would have benefited the most from the project.
However, Olo said that Tuilaepa had known long ago about the project as it was the H.R.P.P Administration that initially awarded the project to the Chinese firm.