Cameroon: Canadian firm announce end of works at uncompleted AFCON Stadium

Canadian firm Magil Construction, has unilaterally terminated the contract binding them for the completion of the Olembe Sports complex.

In a correspondent to the Prime minister dated January 03, 2023, Cameroon’s minister of Sports and physical Education, Narcisse Mouelle Kombi, informs the head of government of the Unilateral termination of the contract by Magil.

Minister Mouelle Kombi stated that on December 06, 2022, they had received a correspondent from Magil Construction stating their intentions to terminate the contract binding them for the completion of the Olembe Sports complex.

Magil later on sent another notice on December 21, specifying that it was leaving the site and that the two parties would meet in an international court as from January 05.

The company went further to request the immediate payment of 10 percent of the project’s value, in conformity with article 18.7 of the contract and also asked for other financial compensations.

The minister of Sports says the decision by Magil Construction to unilaterally terminate the contract to complete the Olembe Sports complex, did not come as a surprise, because after the signing of the said contract, the acts posed by Magil demonstrated unhealthy intentions.

“By the time this company (Magil) took over the site, the main stadium, the hotel, the shopping center and the two training stadiums had already been built. It is clear that after two years of work and 42 billion FCFA consumed, including 38 billion from the pre-guaranteed loan and 4 billion from the government bridge loan, Magil has not completed any component of the Olembe Sports complex left by PICCINI. These cumulative amounts represent 76% of the total project budget. Knowing that the other components of phase 2, planned by PICCINI, and although reviewed, remained at the mock-up stage. However, we have issued service orders to Magil and validated the programming project proposed by the latter,” Stated the correspondent from the minister of Sports.

Mouelle Kombi argues that, following the Unilateral termination of the contract, the state of Cameroon must claim cost on advances paid to Magil.

“The unilateral termination of the contract for the completion of the works of the Olembé Sports Complex by this company means that the State must claim from it, the immediate restitution of part of the advance of start-up as well as that of the bridge loan of 4 billion, failing which MAGIL must be prosecuted for infringement to public wealth”, the minister added.

The construction of the Olembe Sports complex, has lasted for many years, and is now estimated to cost about 250 Billions FCFA, instead of the 155 Billions FCFA initial set aside as budget for the project.

The main football stadium of the complex, and its annexes, were completed late 2021, and host the opening and Closing ceremonies and Group A of the 2021 AFCON.

However, the second phase of the project which was to see the construction of a gymnasium, Olympic swimming pool, tennis courts as well as basketball, volleyball and handball courts, is yet to get underway.

Magil took over the construction site of the Olembe sports complex in December 2019, after the contract of the first contractor, Italian firm PICCINI, was terminated.

It is still to be seen how far the case between Magil Construction and the state of Cameroon will go, but the Olembe Sports complex is far from completion, more than 10 years after the project was announced.

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Tags: Magil