Audit of Kafue-Chirundu road rehabilitation project no. 690-0209

Performance audit covers the period 5/83-3/89. The project objective of facilitating movement of key commodities between Zambia and Zimbabwe was achieved, as construction was substantially complete, the overall quality of construction was excellent, and provisions were made for future maintenance of the road. In addition, internal controls over $12.1 million of disbursements were adequate to ensure that disbursements reflected work satisfactorily completed in conformance with applicable contractual requirements and A.I.D. regulations. However, A.I.D. and the Government of Zambia incurred additional costs of an estimated $1.5 million due to L.J. Whyle and Company"s breach of the initial construction contract. Further, the GOZ had not taken action to ensure that claims against the contractor were eventually resolved because information to fully determine the amount of damages was not available. This report recommends that USAID/Z apply financial pressure on the GOZ to resolve the outstanding claim before approving the construction contract for the planned follow-on road rehabilitation project. (Author abstract)