By Andrew Irumba
Kampala: There is a standoff between a Chinese Company called China Power and Roko Construction (U) Limited, over the construction of Lubowa International Hospital, in Lubowa, off Entebbe Road.
Although initially Roko Construction had scooped the deal to raise the medical facility, the company bosses got shocked when Finasi International FZC the main shareholder in the project, ditched them for China Power. Thereafter a bitter struggle between officials of Roko Construction, China Power and FINASI ensued.
As you read this, Roko Construction has already been evicted from the construction site and China Power is ready to undertake the project, amidst lots of controversy.
Finasi International FZC reportedly contracted China Power over ROKO Construction due to difference in project pricing.
Finasi, the main shareholder in the Special Purpose Vehicle (SPV) Finasi/ROKO with up to 95% approached ROKO seeking a partnership to construct the International Specialised Hospital Uganda (ISHU).
Government early this year approved a loan Guarantee of USD379 million to Finasi/ROKO for the Specialised Hospital.
However, the project was marred with controversies whereby ROKO, who have invested in the site since the initiation of the project, said it was being unfairly kicked out in favour of a new company, Power China Guizhou Engineering Co, Ltd.
According to ROKO Director Mark Koehler, the SPV indicates that no other companies other than FINASI, ROKO or FINASI/ROKO and its affiliates can be subcontracted work in the hospital of more than 15% according to the contract.
ROKO has since run to court seeking to cancel the move by FINASI international FZC chaired by Enrica Pinnet.
SpyUganda has learnt that Finasi got a better deal from China Power, thus kicking out ROKO.
Although FINASI’s main reason for Kicking out ROKO is that they had bad books of accounts and were struggling financially, and also that they were not competent, highly placed sources reveal that the Chinese have offered the same capacity for a cheaper price.
The source says that whereas ROKO was to work with FINASI to construct the hospital at USD80 million, the Chinese have agreed to work with USD55 million to do the same work but with even better financing. This amount is USD25 million less than what ROKO is charging.
The source further revealed that although ROKO would rely on loans to do its works, the Chinese company would reportedly get money from a China facility to do the work.
“I was told the Chinese asked for USD25 million less to do the work. They kept on saying that ROKO was expensive and that their budget was between USD50-55 million to construct the hospital,” the source told our Spies.
Whereas FINASI says ROKO is heavily indebted and incapable of doing the work, it says the new company China Power has the experience and resources needed to do the work.
In a letter introducing China Power dated 6th June to the Ministry of Health, the Finasi Chief Operations Officer Simone Palmieri says for the benefit of the project and to assure the Ministry of Health timely completion of the Work, they decided to award Power China Guizhou Engineering co. Limited as civil works contractor for the project.
He says Power China is ranked highly in the Global contractors ranking and they have an annual turnover of approximately 2.8 billion dollars in the financial year 2018.
“They will mobilize on the site all the required resources and equipment as well as thousands of Ugandan workers, under the direction of their international and highly-skilled engineering and construction and our project management team,” Palmieri says. However, According to ROKO, they do not want to be held liable for a project due to the subcontracting of a company they do not know.
Irene Ochwo, the Finasi/ROKO spokesperson revealed that the company was not willing to give out further information in regards to the matter since it was before court.
