Audit of Cairo sewerage II : USAID/Egypt project no, 263-0173

Audit covers the period 9/84-7/87 and is based on document review, inspections of construction sites, and interviews with staff of USAID/E and of the contractor responsible for engineering supervision, American-British Consultants (AMBRIC). Significant problems in project implementation and construction exist. AMBRIC has been operating with a limited staff and insufficient financial resources, which has affected its ability to adequately inspect and certify construction work. This occurred because the Government of Egypt"s implementing agency, the Cairo Wastewater Organization, or CWO) arbitrarily delayed the approval of needed subcontractor (Egyptian Consultants, or EGYCON) technical field staff, and also withheld payments to AMBRIC for EGYCON"s services. Although a new subcontractor was hired in 7/87, the problem of insufficient supervisory staff remains. Recommendations are for USAID/E to determine whether the construction work certified by AMBRIC has been appropriately supervised and inspected, and to investigate the local and expatriate staffing situation at AMBRIC to ensure that the contractor is able to carry out the necessary work. The Mission comments that a newly approved contract amendment will allow AMBRIC to maintain adequate staff to satisfactorily supervise project construction; as a result, the recommendations are closed.