admin
million more than its competitor. Only two Chinese firms -China Machinery Engineering Company (CMEC) and Sino Hydro – were shortlisted for the project to increase the national power capacity by 600 megawatts.
The tender was awarded to CMEC, whose bid was about US$1,3 billion while Sino Hydro’s bid was about US$990 million.
Energy and Power Development Minister Elton Mangoma last week acknowledged the price variance but claimed it was properly evaluated.
“This tender was properly evaluated,” he said, at a Press conference last week.
“Sino Hydro actually raised a query and they were called in and they were walked through the evaluation.
“As far as I know, they were satisfied.”
But in a statement, Sino Hydro dismissed Minister Mangoma’s claims.
“We are not satisfied at all,” the statement said. “Besides, it’s not a matter of us being satisfied or not. It is up to the Zimbabwean Government’s judgment. If the Government preferred a higher price, as Sino Hydro we respect that decision, though we feel US$300 million would have been a big saving.
“We are interested in continuing to work with the Government of Zimbabwe in infrastructural development as we are doing in the expansion of Kariba South Hydro Power Station.”
A procurement expert who spoke on condition of anonymity said Government was losing a lot of money through the tender process where the most expensive companies were sometimes awarded tenders.
“If the SPB and Zesa were not happy with some specifications in Sino Hydro, they should have negotiated with that company to tie up the loose ends of the specifications, than sacrificing US$300 million for something that will be done through a loan facility,” said the source.
“They cannot tell us that Sino Hydro failed to meet the specifications at all, considering that it is the same company that won the tender for Kariba South expansion. Government could be losing a lot of money in these deals, if they are not vigilant.”
Zimbabwe is facing crippling power shortages with the national power demand at peak periods estimated to be at 2 200MW against available generation of about 1 400MW.
Online Reporter