Mr Deputy Speaker, Sir, I am informed by the Municipal Council of Curepipe that in 2015, it undertook 15 renovation works as follows – (i) Renovation for the fencing of the basketball/volleyball pitch and lighting at Atlee; (ii) Lighting at Les Casernes Football Ground; (iii) Upgrading of fencing works at the football ground at Sir Winston Churchill Stadium; (iv) Levelling and turfing of l'Oiseau Football Ground; (v) Levelling and turfing of the Casernes Football Ground Development Project 2024; (vi) Maintenance of building at the cemetery; (vii) Construction of temporary metal structure for fairs at Le Forum Market Fair; (viii) Extension of existing metal structure for temporary fair at Le Forum Market Fair; (ix) Fencing of the volleyball pitch at L’Oiseau; (x) Lighting works at volleyball pitch at L’Oiseau, phase 1; (xi) Lighting works at L’Oiseau, phase 2; (xii) Turfing of the existing football ground at Laperouse, Street Curepipe; (xiii) Lighting works at Les Caserne Football Ground; (xiv) Extension of existing metal structure for Forum fair, and (xv) Construction of spiral metal staircase at Curepipe Market. Mr Deputy Speaker, Sir, I am advised that no consultancy services were retained for these projects. I am tabling the details with cost estimate and final contract value as requested in the first question.

Hon. Minister, the question was about the Town hall of Curepipe.

However, I am informed that in March 2014, the Municipal Council of Curepipe took a decision to restore and repair the Town Hall of Curepipe and in October 2015, it proceeded with a request for proposal to appoint a consultant for the restoration and repairs of the Town Hall. Mr Deputy Speaker, Sir, the Town Hall of Curepipe was closed since 2013. In March 2014, the Council took a decision to restore and renovate the Town Hall based on a collaboration between the Municipal Council of Curepipe and the SPLIT LTD, consultant of

56 SOS patrimoine. The latter has estimated the cost for restoration and repairs of the town hall at Rs38 million. It is worth noting that the material constituting the Town Hall of Curepipe are mainly made of wood. Hence, in the extremely humid climate of Curepipe, this material is bound to be affected and prone to decay. More than a year and a half had elapsed, and by then, the Town Hall had fallen into more despair. The approval of the then project and plan committee was obtained in September 2014. The Municipal Council of Curepipe then proceeded with a request for proposal in October 2015 to appoint a consultant still on the same estimate of Rs38 million and with the closing date on 09 November 2015. The Bid Evaluation Committee recommended that the contract for consultancy be awarded to Desai & Associates Ltd for an amount of Rs1,840,000 exclusive of VAT. The contract was awarded and the consultancy contract agreement was signed on 08 July 2016. Desai & Associates Ltd was selected on the basis of having achieved the highest combined technical and financial scores. The consultancy service was for a duration of 30 months. However, the total costs of the repairs and refurbishment were assessed by the consultant Desai & Associates Ltd in 2016 at Rs134million that is, Rs134,987,000 inclusive of VAT that is, before proceeding with the invitation of bids for renovation works. The increase in cost estimate was due to inclusion of the items such as replacement of majority of internal timber claddings, strengthening works to timber floor structure, refurbishment of kitchen, luminaires and other accessories including revised estimate for replacement of roof structure given that there was further deterioration in the structure. A comparative exercise was effected by the Council regarding the updated cost. The Council had highlighted that that the Town Hall is experiencing a continuous deterioration with time and had sought the approval of the project plan committee regarding the increase in the cost of the project scheme as per the investment project process manual. Any project which cost estimate is exceeded, the approved cost estimate by 15% at project designed phase, had to obtain the clearance of the aforesaid mentioned committee. By then,

57 the project involved in the renovation of the Town Hall of Curepipe instead of just restoration and repairs. On 08 February 2017, the project plan committee had requested the Ministry to ask the Municipal Council to seek a second opinion on the estimate cost proposed by the consultant and to try to revise same downwards. The Municipal Council of Curepipe requested that kempas could be used as an alternative material for the roof swingle instead of teak swingle which would cause a significant decrease of around Rs16million. The use of alternate materials at the basement level was also recommended following which the cost was revised to Rs117,380,000 exclusive of VAT. On 06 April 2018, the Municipal Council of Curepipe informed that the cost estimate had been revised from Rs117,380,000 (exclusive of VAT) to Rs126,198,000 (exclusive of VAT), that is, Rs145,127,700 (VAT inclusive). The then head of the Public Infrastructure Department of the Council informed on 09 April 2018 that the increase in cost is due to further deterioration of the public infrastructure resulting from heavy rainfall during the period of 2017-2018. On 17 April 2018, the then Ministry of Local Government and Outer Islands conveyed its approval for increase in project value for the renovation of the Town Hall building of Curepipe from Rs117,380,000 (exclusive of VAT) to Rs126,198,000 (exclusive of VAT), that is, Rs145,127,700 (VAT inclusive). Consequently, the consultant submitted the 06 August 2018, a revised consultancy fees Rs6, 615, 000, excluding VAT based on the new estimate costs and increase in the scope of works. A bid evaluation committee was set up at the level of the Council to assess the revised consultancy fee. That committee recommended that an amount of Rs6,033,000 be paid to the consultant. The approval of the then Ministry of Local Government and Outer Islands were sought following which, the advice for the Procurement Policy Office was requested following which, a meeting was held at the level of Procurement Policy Office on 10 January 2019 where it was noted that is the Municipal Council of Curepipe had interpreted section 46(4) of the Public Procurement Act 2006 to justify the increase in consultancy fees with no limit when it should have referred the section 46(3) of the Public Procurement Act 2006 which caps the amount. The Council was thus requested to reassess the revised fees. Mr Deputy Speaker, Sir, a new bid evaluation committee was set up.

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Hon. Minister, sorry you are going too long. Let us be simple, that to the initial costs and your consultancy fees and the final cost.

Yeah, the final, it is coming to a final.

Just please inform us about these three items.

Yeah, the consultant was not agreeable to these revised fees and went for arbitration given that the Municipal Council of Curepipe could not go against the provision of the Public Procurement Act 2006 and the Public Procurement Regulations 2008. Following the arbitration, an award of Rs13 million was made to Desai & Associates including consultation fees, arbitration costs, legal fees and interests.

Okay. Hon. Second Member for Rodrigues. 13TH CJSOI GAMES – PARTICIPATING COUNTRIES – YOUTH DEVELOPMENT INITIATIVES