US$375m for Kunzvi Dam secured
Thursday, 19 July 2012 00:00
Michael Chideme Municipal Reporter
WATER woes for Harare and surrounding areas will soon be a thing of the past after Kunzvi Water Development Corporation secured US$375 million to build Kunzvi Dam. The construction of the dam is expected to begin late this year and end in 2015.
Vinci of France and Group Five of South Africa have been engaged as the major contractors.
The two contractors, together with Locan Holdings (local), Development Bank of Southern Africa, Bigen (South Africa), Okada (Nigeria) and Swede Water, form the funding partners.
But Water Resources Development and Management Minister Sipepa Nkomo said he was not aware of the developments.
“Kunzvi Dam is a project for the private sector and maybe they could have sourced the money, but I am not aware of this,” he said.
If the dam is finally built, Kunzvi water is likely to be cheaper for residents and the city because it needs fewer water treatment chemicals.
Presently, the city uses up to eight chemicals to treat its water because it is heavily polluted.
KWDC chairman Mr John Mapondera confirmed on Wednesday that the loan had been secured and that world-renowned contractors have been engaged.
Officials from Group Five were part of the delegation that toured the dam site on Tuesday.
“The time has come for the construction of the dam. The project cannot be postponed any longer,” he said.
Mr Mapondera was giving a progress briefing to journalists after a tour of the dam site.
He said the identification of access routes from the Musami-Marondera road to the dam wall was in progress.
The actual construction of the road begins next month.
Mr Mapondera said finalisation of the Built-Own-Operate-Transfer agreement was in progress and once completed the funding would be released.
KWDC will operate the dam and its ancillary facilities for 30 years during which period it is expected to recover its investment before ceding the dam to Government.
Water from the dam is expected to supply Harare, Ruwa, Arcturus Mine, Chitungwiza and Juru Growth Point.
Integritas from Zimbabwe, Bigen and Brian Colquhoun (Zimbabwe) are the project engineers.
Mr Mapondera said he would work with Harare City Council to ensure that its water reticulation was upgraded to avoid wastage of treated water due to leaks and broken-down pipes.
Harare and its satellite towns currently draw water from the Manyame catchment area.
The estimated 4 percent yield of the four dams on the Manyame River, which are Seke, Harava, Chivero and Manyame, is 487 million litres a day. The city recycles 198 million litres of sewer effluent, bringing the total available for treatment to 685 million litres a day.
This is against a water demand of 1 200 million litres a day and a production capacity of 620 million litres.
Engineer Elijah Chifamba of Integritas said the Manyame catchment reached its supply limit in 1997 hence the need for Kunzvi.
He said the inclusion of Musami Dam, to be built 15km from the Kunzvi project, would help “wipe the current supply deficit”.
He said the Kunzvi project comprises the dam, raw water pump station, raw water transmission main, water treatment works, water reservoirs and a 14 00ha irrigation project.
The Kunzvi project has had many false starts. Timelines have been given before but nothing has materialised.
Labels: DAMS, IRRIGATION, MINISTRY OF ENERGY AND WATER DEVELOPMENT
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Ministry of Energy overruled tender procedures - Chibuye
By Ndinawe Simpelwe
Wed 19 Oct. 2011, 14:00 CAT
THE procurement authority has revealed that
the Ministry of Energy and Water Development overruled some tender procedures in the procurement of the country's oil. Zambia Public Procurement Authority (ZPPA) director general Samuel Chibuye said
the ministry was unable to follow the advice given to it by the ZPPA tender committee.Chibuye revealed that
it was mandatory for the ministry to get back to ZPPA every time negotiations were concluded in order to give the
final approval of the deal.
"The current Glencore contract for the procurement of oil was not concluded as per procedure. The Ministry of Energy did not come back to us for the final confirmation. We gave the ministry the estimated price for the deal and they were supposed to come back to us after the negotiations but they never did," Chibuye said when he appeared before the energy tribunal chaired by Wynter Kabimba, set up to look into the corrupt practices in the energy sector during the previous government.
Chibuye said the ZPPA gave the ministry an estimated total of US $3.56 billion for the procurement of 1.44 million metric tonnes of oil.
He said the ministry awarded the contract to Glencore at US $1.2 billion for the same amount of oil without getting final approval from ZPPA.
"They (ministry) always come back but for this one they didn't and we only learned that the amount was negotiated downwards," he said.
Asked whether the committee operated without interference from the ministry, Chibuye said the committee worked independently although there were times when it was unable to follow the procedures.
Chibuye also revealed that the ZPPA was not consulted when Dalbit was contracted to refurbish oil tanks in provincial headquarters of the country.
The tribunal further asked Chibuye why Dalbit was awarded the contract to refurbish and build oil tanks when it did not have the expertise for the job.
"We assumed that the ministry had done the investigations to know whether Dulbit was specialised in oil tank refurbishment. We did not know that this company had never done such works before. The fact that they had the finances to carry out the work when the government didn't made us award them the contract," said Chibuye.
The tribunal later told Chibuye that Dalbit had no expertise to build or refurbish oil tanks and that it had to sub-contract another company.
Labels: GLENCORE INTERNATIONAL AG, MINISTRY OF ENERGY AND WATER DEVELOPMENT, SAMUEL CHIBUYE, ZPPA
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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
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Konga drops plans to award LITASCO crude oil supply deal
By Chiwoyu Sinyangwe
Sat 02 Jan. 2010, 04:01 CAT
ENERGY minister Kenneth Konga has dropped plans to award LITASCO a crude oil supply contract in preference to another foreign firm after his earlier scheme with the Russian company was exposed, sources within the Ministry of Energy have revealed. But Konga said he is not involved in the transaction.
And Zambia Public Procurement Authority (ZPPA) has said all companies that participated in the recently aborted tender process for crude oil supply will have to re-apply under the current bidding process which is expected to close next week on Thursday.
The government last month suspended the process of hiring a foreign company to replace Kuwait oil giant Independent Petroleum Group (IPG) whose two-year contract for the supply and delivery of 1.4 million metric tonnes of commingled petroleum feedstock comes to an end this month.
The government announced the suspension of the deal, saying the move allowed for adjustments to the tender specifications and gave recently appointed permanent secretary in the Ministry of Energy, Teddy Kasonso, time to acquaint himself with the 24-month contract.
It is, however, believed that the cancellation of the earlier tender process followed the exposure by The Post of Konga’s manoeuvres to award the contract to LITASCO.
But in an interview last Tuesday, Konga denied having a hand in the crude oil procurement deal and said only ZPPA had the full control of the processes of public procurement.
“I am sure that you are aware that LPG’s contract to supply crude comes to and end at December 2009. So the government is advertising to request for new suppliers.
Those are the speculations and information somebody was giving you but procurement procedures through the Zambia National Tender Board (now Zambia Public Procurement Authority)…they haven’t even spoken to the prospective bidders, but you somebody told you we have selected LITASCO or some other company even before tender procedures.
So, I don’t know how we can agree because there are procurement procedures that the government has to follow before it attract the bidder,” said Konga. “…I am not responsible for procuring, the tender board is…my ministry just comes up with guidelines and then we submit our request to the tender board.”
Labels: CORRUPTION, KENNETH KONGA, LITASCO, MINISTRY OF ENERGY AND WATER DEVELOPMENT, OIL, PROCUREMENT SYSTEMS, ZPPA
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