Contractors mismanage projects in Balkh

The Embassy of Japan awarded a US$80,000 project to a private construction company to build a school in Kaldar District in 2011. Soon after the project was launched, the contractor ran away abroad with cash leaving the project unfinished.

The Embassy of Japan awarded a US$80,000 project to a private construction company to build a school in Kaldar District in 2011. Soon after the project was launched, the contractor ran away abroad with cash leaving the project unfinished.
Tracing the fugitive is both difficult for the would-be beneficiaries and somewhat unbelievable since people say they are used to corrupt projects in Balkh Province.
Many project beneficiaries, members of the Community Development Councils (CDCs) and officials interviewed said projects were mostly awarded by donors in Kabul or by the International Security Assistance Force (ISAF) with little or no local say.
The predominant contracting style also deprives provincial authorities from appropriate monitoring, according to Abdul Rahman, director of Balkh’s economic department. “We are able to follow up the implementation of the projects which are awarded in coordination with provincial authorities but projects which are awarded by donors in Kabul or by ISAF are beyond our oversight.” 
“The construction of a bridge in Sholghara District has taken over two years than the initially agreed one year by the contractor,” said Folad Sazawar, director of the provincial department of rural rehabilitation and development. He said the project contract was issued in a manner which left no room for local government intervention.
Contractors with little or no expertise on local, environmental and geographical issues often implement poor quality projects. The fact that some construction companies even do not have a provincial office to liaise with local authorities and beneficiary communities was cited as another major problem.
“About US$4.5 million was earmarked for a road asphalting project in our district,” said Sayed Mustafa, director of CDC in Dehdadi District. “The contracting company had little knowledge about seasonal floods in the region and used flood-prone materials. They also did not listen to our advice. Their work was washed away by the first flash floods in our areas.”
CDC members also said ISAF contractors particularly paid little value to local consultation. “When we insist that projects be built according to our quality expectations, the contractors say they would implement the project based on their choice or they threaten to take the project into another district,” said Mustafa.
Local people say that significant portions of development funds are siphoned off in the contracting and sub-contracting processes in which every contracting agency takes away varying percentages of the funds as a sort of administrative fee.
“Some donors award projects without proper bidding and contracting processes and when they are sub-contracted there is usually no local accountability and transparency,” said Abdul Rahman, the provincial economy director.
Mr. Rahman said his office sent several letters to ISAF asking for coordination with local authorities in project implementation. “We have received no response yet,” he said.