via SPB cancels 300MW solar tenders | The Herald August 25, 2014
The State Procurement Board has cancelled the 300-megawatt solar projects indefinitely after one winning bidder increased its price, while the Zimbabwe Power Company (ZPC) failed to agree with two other firms that had been considered for the other solar plants. This leaves Government’s quest to find a quick solution to power crisis in the country in disarray as it had hoped that the 300MW projects would be fed to the national grid by next year.
The SPB awarded tender for 100MW solar plant in Gwanda to China Jiangxi Corporation, which was the lowest bidder to specification at about US$184 million.
However, they then made a U-turn by approving a request by ZPC to engage two other losing bidders — Intratrek Zimbabwe and ZTE Corporation, despite the fact that they had charged US$248 million and US$358,3 million respectively at the initial tender for 100MW project each.
The ZPC claimed the two firms had agreed to match about US$184 million charged by China Jiangxi Corporation. But correspondence seen by The Herald indicate that the SPB then cancelled all the three tenders.
SPB principal officer Mr Cledwyn Nyanhete on July 31, 2014 wrote to China Jiangxi Corporation managing director cancelling the tender award after the firm requested to increase the price from US$184 million to US$207 million.
The firm argued that the new price included duties and taxes, a position the SPB dismissed arguing that the costs were already catered for.
Mr Nyanhete said the reasons for increased costs were not justifiable and in contravention of Section 39 (1) (b) of the Procurement Act.
“Accordingly, through PBR 0001J of July 17, 2014, the State Procurement Board resolved that; PBR 0001 of January 16, 2014 in favour of China Jiangxi Corporation Ltd for funding, engineering, procurement and construction of 1x 100MW solar power project at Gwanda/Plumtree be and is hereby cancelled for failure by the winning bidder to maintain their original tender price of US$183 708 238,51 (inclusive of duties and taxes,” said Mr Nyanhete.