The Coast Water Works Development Agency has been named as the most incompetent agency in the water sector with almost all the projects delayed in implementation, a report by the Auditor General has revealed.

The taxpayer has in the process lost with the target population continuing to suffer water shortage as a result, the auditor report for the year 2022/20223 states.

The delayed projects include the construction of Baricho Well-Field Protection Works which had been allocated Sh 3.6 billion in 2021 but work is still in progress.

“The statement of receipts and payments reflects an amount of Sh3.4 billion for the acquisition of non-financial assets which includes Sh3,296,374,116 for construction of civil works. Included in this amount is Sh791,253,843 relating to the construction of Baricho well-field protection works,” states the auditor.

The report further states that the Agency entered into a contract on November 17, 2021 executable within twelve months, from November 17, 2021, to November 16, 2022. As of the time of audit inspection in the month of October 2023, the project had not been completed and the defect liability period of 12 months had already commenced.

In yet another project, the Agency signed a contract in respect of the program for the improvement of water services in Mombasa County and construction works for North Mainland (Nyali) phase 1 at a contract sum of Sh516,433,325.

The contract sum was revised to Sh589,861,167 during the financial year 2019/2020. The project had an expected completion period of 18 months to October 25, 2022. The completion date was later extended to August 31, 2023.

Further, on August 31, 2023, the contractor was issued with a notice for an intention to charge liquidated damages if the contractor did not improve or accelerate the implementation of the outstanding works as of September 1, 2023.

“As at June 2023, the contractor had been paid a total of Sh 370.9 million through eight (8) certificates; an equivalent of 63% of the contract price. As at the time of the audit in October, 2023, the contractor had no extension of time and the performance security of Sh58,986,116 had expired on 22 October 2023,” reads the report.

The construction of the Mombasa North Mainland Short-Term Water Distribution System, a key water project for the region has stalled for three years and no explanation was given by the management.

The report states that the agency entered into a contract on 23rd March 2021 in respect of the construction of the Mombasa North Mainland short-term water distribution system at a contract sum of Sh516.4 million but the figure was later revised upwards to Sh781. 4 million.

 The project was expected to be completed within a period of 18 months to October 25, 2022. The completion date was later extended to October 7, 2023.

 “The project completion status was at 68% at the expiry of the extended project completion date and in the circumstances, the project delay may result in escalated costs for completion, and value for money may not be obtained,” notes the auditor.