The Procurement Regulatory Authority of Zimbabwe (PRAZ),
has directed State Power Utility, Zesa Holdings, to address sticking issues to
the new proposed contract for the Gwanda solar project in line with the
existing contract between the parties and previous procurement law forming the
basis of the signed agreement.
This comes after Cabinet recently approved the new proposed
implementation plan for the project, which committed to deliver the first 10
megawatts (MW) from Gwanda within six months, stressing that the project
remains one of priority initiatives to end power shortages.
Zimbabwe faces a critical shortage of power with constrained
internal generation capacity that averages 1 200MW against peak period demand
of 2 000MW to 2 200MW.
Drought, which reduced output at Kariba and Hwange’s
advanced age, worsened the deficit.
According to a strategic review document for the Gwanda
project presented to both Zesa and the Ministry of Energy and Power
Development, a copy of which is in possession of Herald
Finance and Business, the first 10MW will be funded through bridging finance
from African Transmission Corporation (ATC) of US$14 million.
As such, the State procurement authority has directed Zesa
to resolve issues at hand in line with the existing contract and relevant
Procurement Law.
This comes after the power utility lost the High Court case
against the contractor for Gwanda, Intratrek Zimbabwe, after terminating the
contract for project over delays in implementation of some initial works and
completion of financial closure.
The Zimbabwe Power Company (ZPC), Zesa generating arm, has
since written to PRAZ seeking guidance over how best to proceed with the
proposed new contract for the project, pointing out that the new contract has
variations to the initial one.
“The new proposal has variations from the original
specifications upon which the tender was awarded. In ZPC’s view the proposed
variation will result in a contract materially different from the original one
or would significantly alter nature and scope of contract,” ZPC said.
ZPC also said that after the High Court ruling that the
contract between the parties was still valid and extant and directed the
parties to the deal to find ways of implementing the power project, the State
power utility had since re-engaged the contractor.
“In light of the issues raised in the aforementioned
letter, please note that your entity must be guided by the provisions of the
contract between the parties to the agreement in addressing issues at hand.
“However, it is important to note that the applicable
procurement law would be the repealed Procurement Act because that was the law
that was in place at the time of contract signature.
“How to proceed with the contract is therefore a decision
the accounting officer has to make although guided by the provisions of the
Procurement Act and repealed regulations, together with terms of the contract
that is still extant,” PRAZ said.
In a response letter to PRAZ, after seeing a copy of the
letter ZPC wrote to the procurement regulatory authority, Intratrek said that
it had not introduced any material variations to the contract signed in 2015,
and that its proposal was only of phasing the project.
“The intention therefore is that of implementing the
project in two phases of 10 megawatts then 90 megawatts, but complying with the
criteria and technical specifications of ZPC to the full extent,” Intratrek said
in the letter to PRAZ. Herald
0 comments:
Post a Comment