International civil engineering and construction giant PAVIFORT, the contractor of a -20 million dollar OIC funded feeder roads, has reopened after been temporarily shut down by tax administrators GRA for alleged nonpayment of tax.
The company came out with a swift rebuttal in the media and reminder to relevant government officials and institutions clarifying that it owes GRA no tax obligation as per the contract signed with the Gambia government on a donor funded project.
Independent findings have established that indeed PAVIFORT was right and the company was immediately reopened to continue the reminder of its contract.
”Some misunderstanding must have happened but PAVIFORT’s contract is clearly tax free on the contractor and that is even what influenced their relative low prices for the road project awarded to them,” a source familiar with the works confirmed.
History of the contract
The contract, construction of 50kilomters (Lot 2) of The Gambia Urban Road Project, is being implemented by PAVIFORT-GAMBISARA HUTA JV Joint Venture under a financing agreement between the Government of The Gambia and the Saudi Fund for Development (SFD). The project is duty- and tax-exempt in line with donor-funded contract provisions—except for statutory PAYE for employers and royalties.
It should have lasted for just under two years but the work is well into its fourth year, though is over 90 percent completed now.
Investigations uncovered that the delay came when the first two years was spent on tackling a major Access and Relocation Exercise which should have normally been done before the contract starts.
“From the outset, the contract required the Client, (the Government of The Gambia) to provide full access to the site for the PAVIFORT to start construction. However, extensive delays were encountered due to the relocation of utilities and demolition of existing structures along the project corridor. Consequently, the budget allocated for relocation works under the contract proved insufficient, covering less than 25% of the actual relocation needs,” a source confirmed.
To address these challenges, the government deployed the military for approximately one and a half years to support relocation activities. Despite this extraordinary intervention, the PAVIFORT continued to face restricted access to key sections of the site, resulting in prolonged delays and operational difficulties.
Despite these constraints, PAVIFORT-GAMBISARA HUTA JV Joint Venture, said it remained fully committed to the successful delivery of the project, through sustained effort, technical expertise, and continuous coordination with stakeholders, the Joint Venture has pushed the project to its current advanced stage.
“This has been a demanding project, but our commitment to supporting national development has never wavered. We are proud of the progress achieved and remain focused on completing the remaining works to the highest standards,” a response from the company to our enquiries stated.
Government scoops bonus
A curious but positive development out of the delay is that it allowed the Client (Gambia Government) and the beneficiaries of the roads, the Gambian people -to enjoy extra ingredients such as lights, water and other amenities not initially included in the project . ”Government is smart in this aspect and came out with a full basket,” a source said.
Contacted for comments on their Gambia contract, PAVIFORT-GAMBISARA HUTA JV Management expressed appreciation to the Government of The Gambia, the Saudi Fund for Development, and all stakeholders who have supported the project. “We look forward to continue the collaboration on future national infrastructure initiatives aimed at improving mobility, economic growth, and community development across the country,” a statement from the Jont Venture said.
Background
PAVIFORT-GAMBISARA HUTA JV is a multi disciplinary construction partnership committed to delivering high-quality infrastructure projects that support sustainable development.
The Joint Venture brings together international expertise and local capacity to contribute meaningfully to The Gambia’s long-term growth.
