adminHarare Bureau
The State Procurement Board has thwarted a move by the Zimbabwe Power Company to award a tender for the Mutare power peaking plant to a company which charged $28 million more than the lowest bidder and ordered the power generating company to go for re-evaluation.
ZPC had recommended that Pito Investments (Pvt) Ltd which was charging $120 million be awarded the tender at the expense of the lowest bidder Helcraw Electrical (Pvt) Ltd which had quoted $92 million for the same job.
The 120 Megawatt Mutare peaking power plant would be powered by a dual mechanism that can either run on gas or diesel and would strictly be used to provide back-up power in cases of high power demand and major faults.
The contract, one of the priority projects targeted under the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, is expected to be complete by 2018. Documents in possession of our Harare Bureau show that the SPB last week wrote to ZPC demanding that they justify reasons for going for an expensive company, yet there was a lower bidder meeting the specifications.
ZPC sources yesterday claimed that their managers, led by managing director Noah Gwariro were allegedly angling to financially benefit from the deal.
ZPC was ordered to clarify how “exactly the lowest bidder, Helcraw Electrical, falls short of tender requirements as per clause 1 (iii) of your evaluation report, for pricing for the 2×60 MW machine.”
The company was also asked to explain contradictory statements in its evaluation report.
“Whereas Pito Investments price schedule states that their grand total of $120 million included duty and VAT, a note on the same page also states that price excludes duty and VAT,” read the documents.
“Please comment in detail and demonstrate exactly how each bidder either failed or met the tender requirements.”
ZPC was also warned to evaluate bids in accordance with procedures and criteria set out in the Request For Proposal document in line with Section 31 and 34 of the Procurement Act.
Gwariro refused to comment on the alleged link between ZPC officials and Pito Investments
“It’s not proper to discuss items under adjudication. Please allow the internal processes to go on.”
Gwariro last month said they were looking “for the best offer” for the contract.
ZPC last year came under fire for awarding a billion dollar tender for the expansion of Hwange Thermal Power Station to a company, China Machinery Engineering Company, which did not have funds for the project.
It took ZPC more than a year to realise that the company did not have the capacity to carry out the job before switching to Sino-Hydro, another Chinese firm.
Online Reporter