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Sino-Hydro representative in Zimbabwe, Mr Wu Yifeng, yesterday confirmed there had been a variation to the original price.
“The actual contract was for $355 million but the total price that we signed the contract for was $390 million, including contingencies,” said Mr Yifeng.
He said there was nothing wrong with the variation because both Sino-Hydro and ZPC had approved it.
“It is the final price that was approved by both sides. ZPC put variations for the contingencies. We did not include the contingencies in our bid because they had not requested for it,” he said.
He said the contingencies were to be agreed upon during contract negotiations.
However, a highly placed source said this was in breach of the procurement regulations.
“Section 26 of the procurement regulations states that in the event of any variations, it should be approved by the SPB. Contingencies should be sanctioned by the SPB but in this case they (ZPC) sanctioned it on their own. Besides, the bidder should have indicated their contingencies in their bid.
“This is a breach of the procurement regulations because the ZPC usurped the powers of the SPB. We will obviously act to address that anomaly because laws are laws,” said the source.
ZPC managing director Mr Noah Gwariro could not be reached for comment.
Energy and Power Development Minister Elton Mangoma yesterday said he had not yet received any communication from the SPB on the latest developments. “I have not received any correspond-ence from the State Procurement Board if they have any concerns with regards to that. At this stage I am not aware of any additional issues to be sorted out.
“But let me say contracts for such big projects require an understanding of issues that are different. Timing comes into play because delay or fast tracking of the project will result in prices either going up or down,” said Minister Mangoma.
He said Government set conditions for the contract in the implementation of the project.
“We have told them that we don’t want them to blast into the rock like they were doing on the Zambian side (Kariba North). We don’t want to weaken the foundation of the dam wall. The geology of the rock on the Southern side is different to the geology on the Northern side. We have agreed that they should not blast because the rock here is softer compared to the Zambian side,” said Minister Mangoma.
SPB chairman Mr Charles Kuwaza said his office as yet to receive communication on the latest development.
Mr Yifeng said the project that is expected to take four years would start as soon as the Export Import Bank of China, the financers of the project, releases the money.
Online Reporter