Work on warehouse delayed as the STC re-negotiates work contracts |08 May 2021

Messrs Umarji (left) and Jean-Baptiste (Photos: Joena Meme)

The asphalting, along with the levelling and grading work at the Seychelles Trading Company’s new warehouse on Ile Eve have been put on hold following a tangle involving the main contractor and others from Praslin who failed the bidding process.

The new warehouse is in line with the company’s priority of being a wholesale distributor, concentrating its efforts on sourcing out essential as well as semi essential products at very affordable prices, for the distribution to local retailers in the country, hence bringing down the cost of living to consumers at all district level.

Due to the incident, the Seychelles Trading Company (STC) has stopped the work on the facility which began yesterday and is now in a negotiation process with a new contractor regarding terms and conditions for the work.

According to deputy chief executive of the STC David Jean-Baptiste, upon the initial selective bidding process, or request for quote (RFQ), four contractors from Praslin showed interest, but only one, namely W Excavation, met the criteria charging the STC R230,000 for the project.

In line with the company’s policy to negotiate for a better price, it decided to look for RFQ on Mahé, to which RJH came up with an offer of R155,000 for the levelling and grading work.

The cost includes equipment transfer, accommodations for three weeks, workers transfer and incident cost.

It is to note that the contract for the asphalting work has been given to the Seychelles Land Transport Agency (SLTA) at a cost of R488,000.

Chairman of the STC board, Imtiaz Umarji, said it was early yesterday morning that he received a call to inform him that there was a commotion at the working site and that contractors from Praslin were protesting and even made threats against RJH for getting the contract to carry out construction work on Praslin.

Mr Umarji said he instantly ordered the work to stop, before contacting the Praslin Business Association (PBA) who is believed to be the brain behind the incident.

Head of the PBA, Christopher Gill, informed him that it was unacceptable for contractors from Mahé to take up jobs on Praslin.

A point to which Mr Umarji agreed upon since according to him, the STC has social responsibility to allow Praslin contractors to carry out the work on their island.

He however noted that this cannot be done at any cost and that the prices should be reasonable.

Mr Umarji also explained to him that, again, based on the company’s mandate for a better price, it was normal to look for a better fee elsewhere.

It has now been agreed that W Excavation will carry out the work for a fee of R120,000, while RJH has agreed to a transfer-back fee for its equipment and staff.

Mr Jean-Baptiste explained that the fee (R35,000) has been calculated after deducting the new agreed price (R120,000) from the initial price (R155,000).

He also explained that negations with the new contractor will include clauses of agreements and conditions, including quality and timely completion of the work.

The project will take an estimated three weeks to complete.

Roland Duval