7 Mar 2006

Fiji cancels China firm's road contract

9:31 am on 7 March 2006

The Fiji government has cancelled the contract of a Chinese company for failing to build a road it had signed to complete by July last year.

The contract had already cost the government the full price of US$34 million.

The China National Overseas Engineering Company, COVEC, blamed wet weather for completing only 35 per cent of the road in Tailevu province in over four and a half years.

The chief executive of the ministry of works, Anasa Vocea, says COVEC will lose a bond of US$3.4 million for failing to do the work.

The termination letter also allows the government to use all the road building machinery brought to Fiji by COVEC to complete the road.