Power tender cancelled

“disagreements” with the SPB over a site visit certificate and bid bond. A bid bond is issued as part of a bidding process by the surety to the project owner, to guarantee that the winning bidder will undertake the contract under the terms on which they bid.

“I am not yet fully appraised by the State Procurement Board but I understand that the tender was cancelled because the SPB and the bidder disagreed on the site visit certificate and the bid bond,” said Minister Mangoma in an interview.

“I just wonder why flimsy reasons are given as the basis for cancellation of such important national projects. It is unfortunate.”

The Kariba South plant was expected to provide an additional 300 megawatts to the national grid. The plant has installed capacity of 750MW and is producing at an average of 745MW.

Zimbabwe is facing a crippling power shortage and is at present only able to generate about 1 200MW against national demand of about 2 200MW at peak periods.
The power deficit has spawned frequent power cuts to industry, commerce and domestic users.

It has become a major obstacle to the ongoing economic recovery. Analysts blame the power deficits on lack of investment into the sector since 1980.

No official comment could be obtained from the SPB by the time of going to print yesterday but a source close to the developments said the SPB would soon flight another tender for the project.
“As it is, the projects can no longer begin early next year as initially planned,” said one source.

“The board will have to flight another tender and this will take about six to eight months for evaluation.”
Zimbabwe is planning to raise power output to 10 000 megawatts in line with the National Energy Policy.
Zimbabwe Energy Regulatory Authority chairperson Mr Canada Malunga said last month the new energy policy calls for capacity expansion of 800MW at the Batoka Gorge hydropower power station by 2020, 300MW at the Kariba South hydroelectric power station by 2016.

Mr Malunga said the new energy policy acknowledged the role of renewable energy sources and that the power regulator was working on an Independent Power Producers policy framework.

The regulator has licensed various large electricity generation projects, investing in 11 new projects with a combined capacity of about 5 400MW and valued at US$10 billion.