Maravi

Govt single-sources Chinese firm to sink 6,000 boreholes for $50m

COMMENT - The cost of borehole in Zambia is $4,000 not $8,300 per borehole. ($50 million / 6,000 boreholes = $8,333 per borehole. Also, at scale costs should go down, not up.)

Govt single-sources Chinese firm to sink 6,000 boreholes for $50m
By Chibaula Silwamba
Fri 05 Mar. 2010, 05:00 CAT

THE Ministry of Energy and Water Development has single-sourced China Jiangsu International to sink 6,000 boreholes countrywide at the cost of US $50 million (about K234 billion).

But Ministry of Energy and Water Development permanent secretary Teddy Kasonso yesterday said the contract had not been concluded.

Insiders at the ministry revealed that the tender bid was rigged in favour of China Jiangsu International notwithstanding the huge cost, which required a loan, possibly from a Chinese bank.

“The contract involves the construction of 6,000 boreholes countrywide and the amount for the project is US $50 million, the bidder is China Jiangsu International Economic-Technical Cooperation Corporation Ltd,” the insider said. “Tender invitation: 18th February, 2010, receipt of bid 18th February, 2010, letter for negotiation 22nd February, 2010, authority to negotiate given on 22nd February, 2010 and date of negotiations on 23rd February, 2010 and award of authority by CTC (Central Tender Committee) on 23rd February, 2010. Therefore, direct bidding (bid rigging) contrary to ZPPA Act of 2008.”

The insider said the bid processes were done at the Zambia Public Procurement Authority (ZPPA) offices in Lusaka.

The insider wondered why the Ministry of Energy and Water Development went for a direct bid.

“The amount is too high,” the insider said. “But probably we will get a loan from China. So watch out when RB returns from China.”

When contacted for comment, Kasonso acknowledged that the amount required was huge but said the contract had not been awarded.

“We have not yet concluded that contract. No! Not yet,” said Kasonso. “Where do you get all that kind of money? All processes have to be followed and so on.”

Labels: BOREHOLES, CHINA, CORRUPTION, JIANGSU INTERNATIONAL, MINISTRY OF ENERGY AND WATER DEVELOPMENT, TEDDY KASONSO

posted by MrK @ 5:29 PM