The two main contractors undertaking the massive drain renewal project affecting most areas of Kuta have admitted their inability to meet the June 30, 2004, deadline set out in their contract of works and stipulated by the World Bank under its terms of financial support for the project.
In anticipation of the delay, the Badung Regional Government sent representatives to Jakarta several weeks ago to lobby with the World Bank to extend the deadline for the completion of the project until December 31, 2004. According to reports in the Indonesian-language Bali Post, the Bank has replied, agreeing to extend the deadline, but only until September 30, 2004 - an additional 90 days from the completion-date set forth in the original contract of works.
The two contractors who won the tender to rebuild virtually the entire drainage system for Kuta have been widely criticized by Regional Government officials and local businesses for their failure to follow the guidelines agreed to when they signed their contract. That contract called for all soil excavated in the course of building the drains to be hauled away and not allowed to stand in piles on the roadways. In violation of that agreement, large piles of earth are commonly seen in the area of drainage work causing delays and inconvenience to both vehicular and pedestrian traffic. In partial defense, the Contractors have complained that the delays have been caused by unseasonable rains and the lack of cooperation from public utility authorities in moving telephone and electrical poles.
Despite the extension granted by the World Bank, Bali's municipal authorities are vowing to impose stipulated penalties on the two contractors should they fail to meet the original June 30, 2004 completion deadline.
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