EVALUATION OF THE BOTZAM ROAD PAVING PROJECT

This special contracted evaluation (which is attached to a PES facesheet, PD-AAG-340-B1) covers the period 8/77-10/80 and is based on an onsite review. A.I.D. provided financing for engineering and construction supervison services, the contract for which was awarded to Tippetts-Abbett-McCarthy-Stratton (TAMS). The project is now two and one-half years behind schedule. The major cause of delay was the dilatory and confused tactics of the EEC (European Economic Community) in reviewing and approving the engineering design. As a result of the delays, engineering costs have risen from $1,497,571 to an estimated $2,360,000, and paving costs rose from an estimated $13,000,000 to a low bid price of $23,048,177. However, the Government of Botswana (GOB), A.I.D., and TAMS are not entirely blameless -- none recognized the inevitable pitfalls which would result from the failure to clearly delineate the authority and responsibilities of each donor. Furthermore, unrealistic time schedules and budgeting were imposed. The GOB Road Department performed as well as could be expected, considering its small size. The Department should not have been burdened with the task of collecting comments from the donors, reconciling differences, and issuing instructions to TAMS. A.I.D."s decision to finance the engineering services contract for a project whose construction would be totally financed by the EEC was unfortunate. Co-financing by A.I.D. should be limited to those circumstances in which: (1) A.I.D. can provide expertise, materials, or equipment not readily available from other donors; (2) A.I.D. financing is large enough to permit it to influence the direction of the project; and (3) there is some technical, financial, or management advantage to the host country from U.S. participation. The evaluators stress the importance of reaching a prior understanding (in writing) with regard to the financing responsiblities of each donor. The host country should take a more active role in the negotiating process.