The Informer
Senior Member
- Jun 14, 2010
- 119
- 29
Government signs more
Richmond-type contracts
TWO COMPANIES AWARDED NEW POWER GENERATION DEALS UNDER CONTROVERSIAL
CIRCUMSTANCES AS THE NATION IS GRIPPED BY YET ANOTHER ELECTRICITY CRISIS
THISDAY REPORTER
Dar es Salaam
THE government has quietly signed two power generation contracts worth around 200 million US dollars (approx. 300bn/-) under circumstances that bare some of the hallmarks of the infamous Richmond/Dowans scandal, it has been revealed.
According well-placed government officials, the Ministry of Energy and Minerals and the state-run Tanzania Electric Supply Company Limited (TANESCO) awarded the tenders during the general election period.
The two separate energy contracts involve the procurement of a 100-megawatt, gas-fired power plant at Ubungo in Dar es Salaam, and the purchase of a 60MW power plant in Nyakato, Mwanza, which will run on heavy fuel oil.
TANESCO has already signed an agreement with a Norwegian power turbine company, Jacobsen Elektro AS, for the supply of a 105 MW gas-fired power plant in Dar es Salaam expected to become operational in 2012.
A Danish company, SEMCO Maritime JV, was awarded the 60MW Mwanza power project.
Officials with the Ministry of Energy and Minerals were not immediately available to comment on circumstances behind the awarding of the contracts.
"Just like the Richmond scandal, senior government officials in the Ministry of Energy and Minerals interfered with the tender process and forced TANESCO to sign agreements with the two companies," said an official close to the government.
It is understood that the contracts were awarded contrary to guidelines set by the Public Procurement Regulatory Authority (PPRA).
"TANESCO had recommended that the contracts should be awarded to a direct manufacturer of power turbines after thorough evaluation to avoid middlemen like those behind the previous Richmond company," said one official.
"However, senior officials in the Ministry of Energy and Minerals meddled in the process and rejected TANESCO's recommendations."
Tenders for the contracts were advertised in July 2009, but were canceled following allegations of irregularities in the process.
"The tender process was resumed only for the same Richmond/Dowans scandal to be repeated all over again. The contracts were awarded to trading companies instead of direct manufacturers of power turbines," said another official close to TANESCO.
She added: "Some prominent individuals, including businessmen and former senior government officials were aggressively lobbying for these power generation contracts."
It has been alleged that the same people linked to the 2006 Richmond scandal were the architects behind the two deals.
Under tender number PA/001/09/HQ/W/016, TANESCO invited bids for the "supply, installation, testing and commissioning" of the emergency,gas-based 100MW power generation plant in Dar es Salaam, on a turn-key basis.
A turn-key project is a type of project that is constructed by a developer and sold or turned over to a buyer (in this case, TANESCO) in a ready-to-use condition.
On the other hand, tender number PA/001/09/HQ/W/018 involves the supply, installation, testing and commissioning of a 60MW power plant in Nyakato, Mwanza, that will use dual-heavy fuel oil for power generation. The proposed Mwanza power plant is also a turn-key project.
According to our government sources, the bid winners for both projects were supposed to be picked on the basis of experience, technical capacity, fulfillment of tender requirements, and other such aspects.
"But the tender process was flouted and the contracts were awarded to these two companies contrary to the public procurement legislation and TANESCO's expert recommendations," she said.
The latest revelations come as Tanzania is gripped by yet another energy crisis, with TANESCO being forced to introduce rolling power blackouts.
It has already been suggested that a giant $2 billion power generation project that could have potentially defined President Jakaya Kikwete's legacy is being held back by corruption, government bureaucracy and lack of political will.
Officials say the proposed 2,100 megawatt (MW) Stiegler's Gorge hydro-power station was being sabotaged by powerful businessmen and senior government officials who have been benefiting from corrupt emergency power generation contracts.
Tanzania's energy demand stands at 900MW, which means that the embattled Stiegler's Gorge project could have ended the nation's chronic electricity shortages and produced more than 1,000MW of excess power for export.
<Source: THISDAY, December 20-26, 2010, issue>
Richmond-type contracts
TWO COMPANIES AWARDED NEW POWER GENERATION DEALS UNDER CONTROVERSIAL
CIRCUMSTANCES AS THE NATION IS GRIPPED BY YET ANOTHER ELECTRICITY CRISIS
THISDAY REPORTER
Dar es Salaam
THE government has quietly signed two power generation contracts worth around 200 million US dollars (approx. 300bn/-) under circumstances that bare some of the hallmarks of the infamous Richmond/Dowans scandal, it has been revealed.
According well-placed government officials, the Ministry of Energy and Minerals and the state-run Tanzania Electric Supply Company Limited (TANESCO) awarded the tenders during the general election period.
The two separate energy contracts involve the procurement of a 100-megawatt, gas-fired power plant at Ubungo in Dar es Salaam, and the purchase of a 60MW power plant in Nyakato, Mwanza, which will run on heavy fuel oil.
TANESCO has already signed an agreement with a Norwegian power turbine company, Jacobsen Elektro AS, for the supply of a 105 MW gas-fired power plant in Dar es Salaam expected to become operational in 2012.
A Danish company, SEMCO Maritime JV, was awarded the 60MW Mwanza power project.
Officials with the Ministry of Energy and Minerals were not immediately available to comment on circumstances behind the awarding of the contracts.
"Just like the Richmond scandal, senior government officials in the Ministry of Energy and Minerals interfered with the tender process and forced TANESCO to sign agreements with the two companies," said an official close to the government.
It is understood that the contracts were awarded contrary to guidelines set by the Public Procurement Regulatory Authority (PPRA).
"TANESCO had recommended that the contracts should be awarded to a direct manufacturer of power turbines after thorough evaluation to avoid middlemen like those behind the previous Richmond company," said one official.
"However, senior officials in the Ministry of Energy and Minerals meddled in the process and rejected TANESCO's recommendations."
Tenders for the contracts were advertised in July 2009, but were canceled following allegations of irregularities in the process.
"The tender process was resumed only for the same Richmond/Dowans scandal to be repeated all over again. The contracts were awarded to trading companies instead of direct manufacturers of power turbines," said another official close to TANESCO.
She added: "Some prominent individuals, including businessmen and former senior government officials were aggressively lobbying for these power generation contracts."
It has been alleged that the same people linked to the 2006 Richmond scandal were the architects behind the two deals.
Under tender number PA/001/09/HQ/W/016, TANESCO invited bids for the "supply, installation, testing and commissioning" of the emergency,gas-based 100MW power generation plant in Dar es Salaam, on a turn-key basis.
A turn-key project is a type of project that is constructed by a developer and sold or turned over to a buyer (in this case, TANESCO) in a ready-to-use condition.
On the other hand, tender number PA/001/09/HQ/W/018 involves the supply, installation, testing and commissioning of a 60MW power plant in Nyakato, Mwanza, that will use dual-heavy fuel oil for power generation. The proposed Mwanza power plant is also a turn-key project.
According to our government sources, the bid winners for both projects were supposed to be picked on the basis of experience, technical capacity, fulfillment of tender requirements, and other such aspects.
"But the tender process was flouted and the contracts were awarded to these two companies contrary to the public procurement legislation and TANESCO's expert recommendations," she said.
The latest revelations come as Tanzania is gripped by yet another energy crisis, with TANESCO being forced to introduce rolling power blackouts.
It has already been suggested that a giant $2 billion power generation project that could have potentially defined President Jakaya Kikwete's legacy is being held back by corruption, government bureaucracy and lack of political will.
Officials say the proposed 2,100 megawatt (MW) Stiegler's Gorge hydro-power station was being sabotaged by powerful businessmen and senior government officials who have been benefiting from corrupt emergency power generation contracts.
Tanzania's energy demand stands at 900MW, which means that the embattled Stiegler's Gorge project could have ended the nation's chronic electricity shortages and produced more than 1,000MW of excess power for export.
<Source: THISDAY, December 20-26, 2010, issue>