Project completion report : Botswana - Zambia road paving, 633-0072

Road paving was successfully completed in 12/83, 3.5 years behind schedule and $18 million (120%) over budget. Various delays occurred in the tendering process and cost overruns resulted both from cumbersome European Economic Community (EEC) procedures (the EEC was a major donor) and difficulties in coordination among donors, the U.S. engineering firm, and the European contractor, COGEFAR. Construction itself, begun in 1/81, encountered numerous start-up problems, including labor unrest and difficulties with supplying and processing road materials. The continued political importance of the road has made the delays and extra costs acceptable to Botswana and to donors, but their satisfaction has been somewhat clouded by a number of large claims which have been submitted by COGEFAR. Politically, A.I.D.'s involvement with the project produced dividends as the Agency was able - for a relatively small contribution (less than 10% of project costs) - to share credit for a highly visible project. By using host country contracting procedures and not funding the construction component, A.I.D. has effectively removed itself from criticism for the cost overruns and unsettled claims. Yet, aside from politics and publicity, A.I.D. has achieved few significant technical, cost, or managerial benefits.