Exim Bank $22.5M Water Project in Limbo

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By Mamadou Dem & Assan Bah

The Export-Import Bank of India USD22,500,000 (Twenty-Two Million Five Hundred Thousand Dollars) Nawec Water Project is in limbo.

The Project Manager (NAWEC Staff) is of the view that the project is done and dusted while the top brass of NAWEC insist that some works are still pending.  

 The project agreement for the replacement of Asbestos water pipes with UPVC pipes in the Greater Banjul Area was ratified by the National Assembly of The Gambia in 2014.

Earlier, Foroyaa was reliably informed that one Alagie Dibba, a NAWEC Staff, and erstwhile Project Manager of the Exim Bank Water Project, subcontracted the Water Project to a company registered in his son’s name.  

His son, Abdoulie Dibba, is operating as Hydrotech Engineering and Trading Enterprises, headquartered in Sukuta, Coastal Road, Kombo North, West Coast Region.

The project was said to have started in 2019 and was expected to end and commissioned by the Gambia government in 2022.

According to our sources, this could not be done because the 22.5 million US Dollar project has some issues as some of the pumps had reportedly started deteriorating. 

Correspondences (Work Orders) shared with this medium between SHREE PADMAVATI ENGINEERS (INDIA) PRIVATE LIMITED and HYDROTECH ENGINEERING AND TRADING ENTERPRISES for the supply of materials and works sub-contracted to the company (HYDROTECH) was shared to Foroyaa.

These are regarded by many as conflict of interest and unethical conduct by Mr Alagie Dibba, whom they said was entrusted with the implementation of the project.

A letter from the SHREE PADAVATI ENGINEERS (INDIA) PRIVATE LIMITED addressed to the HYDROTECH ENGINEERING AND TRADING ENTERPRISES dated 23rd April, 2019 on the subject: Work order for fixing and installation of transmission line, UPVC distribution pipe line & replacement of asbestos pipe line for the project – replacement of asbestos water pipes with uPVC pipes and fixing and installation of valves and accessories in Greater Banjul Area, the Gambia, detailed the awarding of a contract to HYDROTECH ENGINEERING AND TRADING ENTERPRISES. 

The letter reads: “In reference to your revised quotation Ref. No. 0003 dated 16th April, 2019, and further discussion on the above subject project, we are pleased to award you the work order for the fixing and installation of HDPE (PN 6 and PN 10) Transmission line, uPVC distribution pipe line & replacement of asbestos pipe line with uPVC works subcontract along with fixing and installation of valves and accessories for our ongoing project in Greater Banjul area, the Gambia.”

The letter indicated that the bill of quantities and the total amount was fixed at Twenty million, twelve thousand, eight hundred and sixty six thousand Dalasi only (D20,012,866.00). 

In another letter with Ref: PSMCJV/NAWEC/WO/PL/2019/018 dated 12th June 2019, the contractors wrote to HYDROTECH ENGINEERING AND TRADING ENTERPRISES on the subject: Work Order for supplying and filling sand in layers of 15cm thick and dressing of excavation, for replacement of asbestos water pipes with uPVC pipes in Greater Banjul Area, the Gambia.

According to this letter, the grand total of this work order was Forty four million, seven hundred seventy, six thousand, six hundred and four dalasi and fifty bututs (D44,776,604.50).

In another letter dated January, 09th 2020 from the Shapooji and Company Private Limited & SMC Infrastructure Private Limited Venture (SPCPL – SMCIPL JV) addressed to the HYDROTECH ENGINEERING AND TRADING ENTERPRISES with Ref: SPSMCJV/GWS/PO/2020/054 on the subject: “Purchase Order for supply of Sand for our Replacement of Asbestos Water Pipes with uPVC pipes in Greater Banjul Area, the Gambia.

The letter reads: “With reference to the Quotation Ref. No. – 0003 dated 08-Jan, 2020 and the subsequent discussions held with you on the subject matter, we are pleased to place the work order Ref No. SPSMCJV/GAM/NAWEC/053 dated 09th January, 2020 as per the following terms and conditions: Replacement of Asbestos pipes with uPVC pipes and supplying of sand for sand bedding and encasement transmission pipeline.”

This according to the letter was at the tune of forty-nine million, eight hundred and seven-thousand, five hundred Dalasi (D49, 807,500).

It further reads: “This price is inclusive of all overheads and profits, sundries, incidental charges, transportation up to site, offloading at site, wastage, and any other charges to be incurred to deliver the material to the site. This price will remain firm throughout the shipment and not subjected to any upward revision.”

This letter was signed by both the SPECPL – SMCIPL JV and the ENGINEERING AND TRADING ENTERPRISES.

In another letter dated January, 09th 2020 on the Subject: Work Order for Excavation, existing asbestos pipe removal, disposal, trench dressing & preparation of trench bed and backfilling with for replacement of asbestos water pipes with uPVC pipes in the Greater Banjul Area.

The letter indicated it was at the tune of Twenty-five million, four-hundred and sixty-two-thousand, nine-hundred and seventy-five Dalasi only (D25, 462,975.00).

This letter was signed by both the SPECPL – SMCIPL JV and the ENGINEERING AND TRADING ENTERPRISES.

Correspondences from the main contractor (Shapooji) to HYDROTECH shows that the total sum of one hundred and forty million, fifty-nine thousand, nine hundred forty-five Dalasi and five bututs (D140,059,945.5) was disbursed to HYDROTECH for various works such as “fixing and installation of Transmission Line, UPVC Distribution Pipe Line & Replacement of Asbestos Pipe Line for the Project-Replacement of Asbestos Water Pipe with UPVC pipes and fixing and installation of valves and accessories in Greater Banjul Area, The Gambia, Excavation for existing asbestos, pipe removal, disposal trench dressing and preparation of Trench bed and backfilling, purchase order for the supply of sand for replacement of Asbestos Water Pipes with UPVC Pipes in the Greater Banjul Area and also for the supply and filling of sand in layers.

Reacting to the allegations, Mr Alagie Dibba, Head of Planning at NAWEC and former Project Manager of the EXIM Bank Water Project, denied establishing the HYDROTECH ENGINEERING COMPANY in the name of his son, saying he only knew at the time that there were several subcontractors in the project.

He said his objective was only to manage the main contractor, not the subcontractors saying, “I hold him [the main contractor] responsible for the quality of work and materials. The main contractor is Shaapoji, and I only deal with the main contractor.

“At NAWEC, government only signs contracts with the main contractors. He can take a lot of subcontractors depending on work quality, quality of materials,” he said. 

“It is not true that I gave my son a subcontract in the project and I am ready to stand for that anywhere. I never arranged for him to be subcontracted. You can ask the main contractor or anybody who is conversant about the project. I have never discussed with them to give any job to HYDROTECH,” said Dibba. 

“The way the Indian was operating was, as per my understanding, they contracted him to hire labourers for them to do some sand drenching in some of their project sites. I understand that he (Abdoulie Dibba) will sometimes contract someone for the supply of drivers,” he clarified. 

He said: “the main contractor can subcontract his contracts to any one or company he feels like. It is not my job to find out who and who are subcontracted by the main contractor or he comes and tells me that this and this are my subcontractors. I only go and see how the work is done, but not to find out who and who are the subcontractors. There were different sub-contractors Indians, Senegalese, Gambians and Sierra Leone nationals.” 

When informed about the volume of the contract between HYDROTECH and the main contractor he said: “I don’t know how much contract volume was between the main contractor and the subcontractors. Maybe the volume of the contract is there depending on the materials used, but I cannot confirm these amounts.”

He added: “Material wise, all the materials were coming from India. In fact the contract rules are 75% of the materials and labour should be from India that was the condition of the contract.”

Giving a background of the project, he said: “the project was a water project and its main objective was to replace asbestos pipes. It is at the tune of 22.5 million Dollars. In the interim, we take the opportunity to expand the network also because our production boreholes that were supplying Fajara, have quality problems. So in the scope also, replace some of the boreholes that are around Fajara, in Mariama Kunda, Yuna, Sare Pateh, so that they can supply Bakau, Kanifing coming from that area where the water quality is good.”

“Eight new boreholes were drilled to be treated at the Sukuta Treatment Plant and transported to those areas. The scope was 8 boreholes, but during negotiations, we were able to get two more boreholes but they are yet to be equipped by the contractor. In the same project, we were able to get a 34 kilometer water transmission line that takes it from the borehole to the plant.”

On the progress of the project he said: “This project is closed and the defect liability has already elapsed in April 2023. As far as that contract is concerned, it has closed.”

On whether the project was commissioned by the Gambia government, he said: “For me as the then Project Manager, legally I think that project is closed as far as I know. As per my understanding of projects, when a contractor does a job, when you commission is when you start using the equipment. One year after that any defect you have in this period, the contractor has to fix it, but after that it is the responsibility of the client to fix it,” he expounded. 

“The first component was completed in 2021 and defect liability elapsed in 2022. And the second [last] component was completed in 2022 and the defect liability elapsed in 2023 as far as that contract and the contractor are concerned, the contract is closed,” he reiterated. 

When asked when the HYDROTECH Company was established he said: “If I can recall, HYDROTECH was established in 2018. Before establishing his own company (His son), I sent him to do automotive at the Gambia Technical Training Institute (GTTI), now called the University of Science Engineering and Technology (USET). While on that, he started vehicle rental which I later advised him not to continue, because I told him that was not a safe business for him because of the risks attached to it.”

On allegations that the HYDROTECH is owned by him and registered in the name of his son: “the company is 120% his (referring to his son, Abdoulie Dibba). I don’t even know where he registered it. When he told me about establishing a company, I only told him not to be a car rental company only, let him put an engineering component so that he can later expand it to do construction and other services. I didn’t set up this company for it to be subcontracted by NAWEC. It does not work in my head like that. This project was there in the public, nothing was concealed to the public. All I know is he was giving them labourers for the excavation work, and spreading.

“By the time of registering his company, I didn’t know I was going to have a project with Shapooji. It is therefore, not correct to say that I put up the company just for it to be subcontracted by the contractors.”

“I have to check how it happened [that said amount of money involved]. To be honest, I don’t know the way the payment was done. I am just hearing this amount from you. What I saw them doing was spreading sand, they were later involved in the excavation of pipes in the provinces because the contractor did not go to the provinces with their equipment as a result, HYDROTECH were doing the excavation in the provinces as well. These are the things that I know. But when it comes to material, I don’t know what material it was,” said Dibba. 

“I was there to administer because a consultant was hired. He was responsible to look at all the technicalities and advise me accordingly. We also had a project team and we met weekly to discuss the affairs of the project issues,” he explained. 

He was later shown the amount on one of the work orders and he said: “Something is missing because for Indians, where you are saying millions will not actually mean that, because their computers maybe when you are talking about hundred thousand, it might appear as a million.”

He was however, told everything in the document was worded and specified in Gambian Dalasi, he said: “because two million Dollars’ worth, but go on, he was allowed to complete reading the details on the work order upon completing reading the details on the work order, he asked: “is this an invoice or work order?” Foroyaa answered: it is a work order, which indicated twenty five million.”

“You know what is happening in the work order and what I understand is, I will tell you this, but what you do is what I will pay you,” he explained.

He was again shown the work order and after having a look at it, he said: “How the thing is mentioned here and how it is done, to me it is different.”

But this is a contract between two legally registered entities, he was reminded. He answered: “In work order, what you do is what I pay. That is my understanding of that. What they agreed on and how they agreed, I don’t know. That is why the amount looks new to me. I know they were working together, but honestly speaking, I never knew this was the amount between them,” he clarified. 

“What he did was he only brought drivers because the trucks were owned by Shapooji, they even measured the capacity of the trucks. What he did was only to bring drivers and pay them for the services as the intermediate between them. The same goes to the labourers, he pays them after their service,” he said. 

He was asked whether his son is a trained water specialist. Dibba answered: “I am a water specialist and I go with him anywhere I go in my projects, because I wanted to take his mind off the ‘back way’ syndrome. He did an auto system at GTTI and I noticed that business was on his mind.

“I will therefore, say, yes, he has the experience because he is managing his company for himself. I think he also has a right as a Gambian to find his luck in projects and survive. I am not managing his business for him. They also need to have a profession to live on, but I don’t register a company for him just to benefit from this project. I have managed several other projects.”

“The contractors contracted him because they believed he was efficient for the job. The contractors were struggling to get labourers at the time because of the COVID pandemic and they were transporting labourers from Sierra Leone. Half of the excavation team was coming from Senegal, Sierra Leone and other countries because they could not have enough labourers here to do the job.

“All I know is that the contractors are the ones who arranged because he doesn’t have trucks. My focus was to ensure that the depth and sand bedding was right.”

“All the monies mentioned in the work orders will go back to the sand suppliers at the end of the day. The consultant can tell you that there was no single malpractice in that project. I can tell you that the number of cubic meters of sand that was being supplied….., you will realise that 89% of that money went into the procurement of sand,” said Dibba.

“I know I have not done anything wrong. All I know is that he has a right to register a company and be contracted by anyone. I don’t even know where he registered his company,” Dibba retorted.  

“I know that he never had the money mentioned in these documents because if he had this amount then why would I still work here. I know the way the money was passing through his hands. He was just organising it.”

“Honestly speaking nothing wrong was meant for it. Because there is nothing sort of favour there. Lots of people were coming there for subcontracting and I even helped one guy to be subcontracted because time was our problem at the time, he was contracted to bring machines to finish the job and time was not on our side. My job was to make sure that the quality of the work was not compromised.” 

“As his father I encouraged him to venture into something, but it was not done by any means of trying to shy on something, we are very clear, records are there he even made very little profit in that contract.”

“It is not true that I put up this company to be able to give contracts to him. This contract was even given to an Indian company which subcontracted several contractors. They never tell me who and who their subcontractors are.”

“The only thing that he earned from that project is experience and knowing how to manage people and make reference for himself, but monetary wise, I know he did not have anything there.”

“Even when we have a contract tomorrow, I will ask him to try his chance because he is a Gambian and has a right to have his company. It is very unfair to accuse me of doing that.”  

He clarified: “To me it is commissioned, because it is operational. We have been using the product of these boreholes since 2020, and the pumps are working and the defect liabilities have expired.”

“The final bill of the project is held by the Managing Director (MD) which is to his discretion because it is his responsibility to certify himself. That is whether everything is in place. I have already given my report of the project, but he has his doubts because he told me that some of the pumps failed. Those pumps failed as a result of operation because NAWEC does not have enough water and we tried to force those pumps. I cannot hold the contractor responsible for that.”

“Why would I favour the contractor, knowing that it is state resources that are used? I have a legal document that is binding between me and the contractor and I cannot pass that. If at all, I was informed of any problems before the elapse of the defect liability, the contractor will be asked to fix it, but it’s now years since the expiry of the defect liability. I cannot hold the contractor responsible for that particular issue.

This is the issue; it is what is holding their payment. For the MD he is saying he is not satisfied, we had a meeting on site, we discuss the issues we went there to see and I explained everything, he then asked me to put a correspondent which I already did for them to vet. To me the contract is done.

“I have a legal document binding between me and the contractor and I cannot bypass that. They should have come to me if there is a problem in the pumps rather than waiting until after the defect liability is over,” he added. 

“There is only one part where I hold the contractor responsible because it was mentioned in the contract that the Hard Drive that is the storage for data should be 365 days, but because I am not an IT specialist, before I commission that I insisted that I will not accept the commissioning until our IT team is here.”  

“But the contractor was protesting saying that you are using the product and you don’t want to accept it. They later locked all the boreholes with padlocks arguing that we have been using the product for months and we don’t want to accept it. But I insisted that we wait for the confirmation of the IT team. After their confirmation, I signed and that everything was okay but I later realised that the data storage was not 365 days. I then wrote to the contractor, but he said we have to take a pen drive. Legally, I think I can only hold them responsible for the Hard Drive.”

“My point is we should not operate the product after one year and accept it. Nobody has ever told me anything before April, 2023. As far as I know the team was working up to April, 2023,” he expounded. 

According to Dibba the project covers 250Km in Greater Banjul Area and part of Farafenni and Barra respectively.

He also used the opportunity to explain some of the projects he managed such as the OIC Project which he said he developed from concept to securing the funds for the project; adding that he’s happy to do such type of services for his country in collaboration with his team of engineers.

Another achievement he made for the country as a Water Specialist, according to him, was the Agence Française de Dévelopement (AFD) grant to finance “Water Supply in the greater Banjul Area.”

Reacting to the issues surrounding the project, Mr Gallo Saidy, the Managing Director, National Water and Electricity Company (NAWEC), said he was not the MD at the time of the project, he however, confirmed that Mr Alagie Dibba was the Project Manager of the said Project.

On the allegations meted against Dibba as the then Project Manager MD Saidy said: “It is true that the Gambia is a small country and people are interrelated. But if there is a conflict of interest knowing that you are related to so and so, you should refrain yourself from it (the Project) and let it be managed by somebody else.”

“That is what was supposed to be done whether it was violated or not, I cannot tell because I was not here at the time. The conflict of interest there should have been identified and managed,” MD Saidy added.

Responding to the status of over 22.5 Million US Dollars Gambia government loan project, he said there are some issues that the contractor needs to sort out. “And from our side we have not given them the certificate of completion yet. And they have not received their final payment yet because we thought that some of these things needed to be sorted out,” the recently appointed MD reveals.

 “We are having issues with some of the equipment. Some maybe because of the contractor and some maybe because of operations. We just don’t want to have a blanket statement because we are using the system and in doing so, some may have problems,” he expounded.

 “These contractors should have been given their certificate of completion by January this year. We have their payments here, but I have my views that there are things there that need to be resolved. The project manager should get it sorted out with the contractor,” he asserted.

“Apart from the conflict of interest involved in the project, there are other pending works to be completed because the Scatter System of the Sukuta Water Treatment Plant is not completed. There are other pumps that have been there for ages, but they have not failed, that brings the question why are new ones failing.

“There are things that are not completed which both the contractor, Alagie and the consultant know because it is on the ground it is not done. So that needs to be sorted out. We are working with him to have it sorted out.”

“As far as I am concerned, I will do what I think is right for the public, not an individual.”

“When I came we put a conflict of interest policy which everybody will have to sign. Because I believe that’s the only way we will move forward,” he emphasised.

Speaking to a representative of the main contractors (Shapooji), who wish to be anonymous, he clarified that they hired all their subcontractors

through a procurement policy and only paid based on the work executed by the sub-contractors.

“All the sub-contractors were hired through a tendering process and no one had an influence over who we hired. We needed more sub-contractors to complete the work so we therefore hired several other sub-contractors such as; Sound Hills, Africa Constructions, amongst others who I can’t remember. We subcontracted HYDROTECH through three (3) work orders.”

On the water treatment plant, he said there was a water tank and the treatment plant was constructed and was completed in January, 2021.

When asked whether the amount of money indicated in the work orders was paid to HYDROTECH, he responded by saying: “No, no, that is not possible. We pay based on the work executed. If we say we want 1000 trucks of basalt and you deliver only a truck of basalt, we will pay only for the one truck. We used to certify how much they supply monthly.”

However, he confirmed to this medium that the sum of D22,000,000 (Twenty-Two Million Dalasi) was disbursed to Hydrotech and not over D140,000,0000 as alleged. 

When asked how much was given to HYDROTECH, he said he can’t remember as they were dealing with lots of other subcontractors and said it is two years since the contract was closed. “None of the sub-contractors had even completed all the work that they were contracted for.” 

When informed of the client’s [NAWEC] decision to withhold their completion certificate and final payment was due to the failure of some pumps and some pending works at the project, he said: “This is news to me. I am just hearing it from you. We have not received any communication from NAWEC with regards to this,” they stated. 

According to him, they have completed everything in the project and said the contract’s defect liability has also passed. “The first component of the project was commissioned in January, 2021 while the second component was commissioned in March, 2022.

He however, said NAWEC is still withholding their final payment of 1.793 Million Dollars, “after the completion of the contract and the expiry of the defect liability. A consultant was appointed and has left the country and the contract is dead. After the completion of the contract for both Phases 1 and 2 we have not had any communication from NAWEC.

“The first Phase of the project was formally commissioned by the Gambia government in the presence of the then NAWEC MD, officials from the EXIM Bank, and Indian Ambassador in January, 2021, March 2022 respectively. 

According to another senior official from the main contractors, the failure of the said pumps might be caused by either no proper maintenance or over usage.

 “We are open to cooperate with NAWEC to address the said problems but our pending payment should be released first.