The Zimbabwe Power Company (ZPC) is seeking to cancel the $113 million contract awarded to Indian company, Jaguar Overseas Limited (JOL) in 2015. JOL won the contract to repower Munyati Power Station after partnering with Wicknell Chivayo’s Intratrek Zimbabwe. ZPC is now seeking permission from the State Procurement Board to cancel the contract saying that the firm has delayed in securing funding to rehabilitate the power station.
However, the Indian firm has threatened to go to the courts if the contract is cancelled. JOL, in turn, has counter-accused the SPB of seeking to reverse the tender process in order to award the bid to Chinese company, China Gezhouba. The company said:
The employer, in an unscrupulous and unprecedented move, attempted to smuggle in the second round placed bid, China Gezhouba, as the winner of this tender in a clear violation of the procurement Act and its regulations,” the JOL chief executive said.
ZPC, in surprising turn of events, after having found the (JOL) bid to be compliant, both technically and financially, attempted to contradict themselves. Their attempt to question funding smacks of sinister underhand activities and is another attempt to benefit the losing Gezhouba bid, which they had brazenly recommended as the winning bid,” he said.
The allegations of failure to raise funding are completely unfounded. The lead financiers, BancABC, stated in no uncertain terms that subject to conditions precedent being complied with, they are ready to commit 15 funding.
More: Herald