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School from TBEA. About change of contractors and lost millions

24.kg news agency already told what $ 20.3 million grant from the Chinese TBEA company was spent on. Recall, the company promised on behalf of the president of TBEA to build for Kyrgyz citizens two schools — in the south and in the north — for $ 2 million soms.

In fact, only one school was built — in Kalys-Ordo housing estate. The grant did not cover all the expenses, and contractors still did not report on the project.

How contractors were changed

The head of the Public Administration Department for Capital Construction of the Bishkek City Administration, Stalbek Omurkanov, told 24.kg news agency that three contractors were replaced during the construction. According to the memorandum of cooperation between the Bishkek City Administration and TBEA, the company was given the opportunity to freely choose a contractor organization for the design and construction works, upon completion of which TBEA transferred the constructed school building to the balance of the Municipal Property Directorate.

TBEA attracted Alto Group LLC as a contractor, since it worked with Chinese materials.

Initially, it was proposed to build a school under the latest technology using light steel thin-walled structures. «We have already stepped on such a rake. Such structures does not fit our climate. At first, they proposed to build single-storеy buildings made of Chinese materials. The Chinese promised that they would make the project to comply with our standards. If they built using light structures, there would be 200,000 soms left. We wanted to use the money to repair the kindergarten № 56. The technical council did not approve the lightweight construction. The project did not suit the seismic and weather conditions. We agreed only on capital construction,» Stalbek Omurkanov told.

According to the estimate, the cost of the school was estimated at 346 million soms. TBEA allocated only 137 million. The city authorities should find the rest to complete the construction.

However, Alto Group did not cope with the task. In 2016, the contractor was removed from the project. TBEA found a new company — Glavstroy LLC.

«$ 1 million has already been transferred to Alto Group LLC. The second part of $ 988,000 was intended for completion of construction. TBEA took $ 12,000 for technical supervision. It itself transferred money to contractors,» said Stalbek Omurkanov.

Later on, the Public Administration Department for Capital Construction said goodbye to Glavstroy LLC, which made a lot of defects in brickwork. «We categorically refused to accept the object and forced it to dismantle four blocks. Now they demand to accept the work done, but we are not going to accept the defects,» Stalbek Omurkanov explained.

Profit from construction of schools

Aikol-Story LLC completed construction of the school. The company worked from the beginning of the project as a subcontractor. «Only 104.3 million soms were required for the building, another 20 million soms — for engineering networks. We proposed to conclude a tripartite agreement. The Chinese side refused,» head of the agency told.

Alto Group has still not reported on the spent $ 1 million.

The Public Administration Department for Capital Construction under the Bishkek City Administration wrote a letter to Temirlan Brimkulov, as the curator of the TBEA project implementation, to get a report on the funds spent. There is still no answer.

«The Chinese side has taken $ 12,000 for technical supervision, but we are actually conducting it. Contractors cannot submit documents on the spent money. The Capital Construction Directorate has its own standards for determining the cost of materials, specifications, time. The market price in this case does not work. You need to attach the invoices from a factory. The problem is that no one can check the grant money,» the official said.

The Accounts Chamber of Kyrgyzstan already had questions to Aikol-Story LLC on the construction of the school in Dordoi housing estate.

Based on the results of the scheduled audit, the cost of works completed was overrated by 19.6 million soms. The Prosecutor General’s Office opened a criminal case.

The investigation of the construction of the school in Kalys-Ordo also continue. According to the contract, A.S. LLC should complete the work at the expense of $ 700,000 of the Chinese company. However, the officials of the Public Administration Department for Capital Construction, in collusion with employees of the city finance department of the Bishkek City Administration, drew up a fictitious additional contract and unlawfully transferred 91.5 million soms of budget funds to the account of A.S. LLC allegedly to continue construction of the school.

Apparently, the Prosecutor General’s Office under A.S. LLC means exactly Aikol-Story LLC.

No complaints against TBEA

The Chinese company told 24.kg news agency its version of the project implementation. The city authorities are guilty there. Despite the fact that the memorandum was concluded, first time the contractor was chosen by the Public Administration Department for Capital Construction. TBEA transferred $ 1 million on its account in April 2015. However, work did not begin for 6 months.

After it the investor has already attracted the contractor. But, the Chinese company told, the Public Administration Department for Capital Construction put obstacles to attract their company. It was Aikol-Story. TBEA offered to transfer money on the account of Bishkek City Administration, but officials refused in order to bypass the law on public procurement.

Generally speaking, the Chinese side has fulfilled the terms of the agreement — $ 2 million has been granted to Kyrgyzstan. The Bishkek City Administration has written that it has no claims to TBEA regarding the allocation of money. The company has never received a report from the Public Administration Department for Capital Construction on the use of funds by contractors. Only Glavstroy out of three companies has submitted the completed works report.

The Prosecutor General’s Office is to sort out the project now.

The agreement with TBEA and Exim Bank of China was signed not in favor of Kyrgyzstan. It indicates that in case of disputes, they will be resolved under the laws of China, and all the court hearings will be held in Hong Kong.