via DBSA keen on technical experts | The Herald August 4, 2014 by Conrad Mwanawashe
Transport and Infrastructural Development permanent secretary Munesu Munodawafa has said the signing of a $460 million facility from the Development Bank of South Africa for the recapitalisation of the National Railways of Zimbabwe has been delayed following the request by the bank to be allowed to engage SA technical partners.
“We are negotiating with South African financial institutions. DBSA has shown interest and we have engaged international consultants. We need about $460 million.
“We should be able to secure something from DBSA soon.”
“The only challenge we are facing, but I am not crying at this stage, is that on the $460 million, they are not keen on a Government guarantee. One small hitch which we want Minister Bimha to help us with when it gets to Cabinet is that in terms of procurement procedures, we need to go to international tender and DBSA is saying ‘this is our money. You cannot come to SA and get our money and then give it to a Chinese company.’ It’s a real issue, Minister,” said Mr Munodawafa.
He said DBSA has identified key technical partners and the bank wants NRZ to choose one of the SA technical partners, some of them public enterprises in that country.
The DBSA position is not consistent with Government’s procurement laws, which require that NRZ go to international tender for such major capital projects. “Our own system is saying you need to go to international tender. So it’s a hurdle that we will talk about, but we will give it to Government.”
COMMENTS
Come on Munodawafa, get real. Do you honestly think that any mulilateral finance institution is going to trust your procurement processes. If I were DBSA I would also want some control, particularly with ZPF’s track record with project finance
DBSA is right. This is their money, let them call the tune. Gukurahundis need to understand that its international practice by funders everywhere to set terms and conditions for the funds advanced. Its not a western thing. No beggar ever calls the shots!
The solution is simple, get three of the technical experts and 3 others from different countries into a competitive bid. The bids will be opened and assessed by Zim procurement board together with the bank… sensible compromise!