THE Tanzania Electric Supply Company Limited (TANESCO) has restarted the tendering process for execution of Kinyerezi I Extension project following an order from the Public Procurement Regulatory Authority (PPRA).
The PPRA in December last year ordered TANESCO to restart the tender process after the previous tender process, which picked the CSI Energy Group (Tanzania) Limited last November to undertake the works, was disputed.
The restart of the process came after Aqua Power Tanzania Limited, whose bid was ranked second, challenged the award at PPRA in December last year.
The protest from Aqua Power Tanzania Limited was based on the fact that Ms CSI Energy Group failed to comply with a crucial tender requirement of submitting a manufacturer’s authorisation of four major equipment of the project: gas turbines, turbine chiller, grid control system and power transformer.
The execution of the remaining construction works include supply, installation, testing and commissioning of the natural gas based 185MW power plant project-Kinyerezi I Extension.
Yesterday, Tanesco published an announcement, inviting interested bidders to bid for the tender.
The announcement, undersigned by TANESCO’s Managing Director Tito Mwinuka, says the tendering process will be conducted through international competitive tendering procedures specified in the Public Procurement Regulations, 2013 – Government Notice No. 446 as amended in 2016.
“All tenders must be accompanied by original tender security of 900,000.00 US dollars in the form of Bank Guarantee from a reputable commercial bank and counter guaranteed by a reputable local commercial bank - for (International Bank) and shall be valid up to 28 days from expiration of tender validity period,” the advert states.
The new development means the CSI Energy Group (Tanzania) Limited which was initially picked by Tanesco in November last year to do the work will have to wait for completion of a fresh round of tendering process.
After discovering flaws in evaluation of bidders in December, the PPRA sided with Aqua Power to cancel the award proposed to CSI, and ordered Tanesco to restart the tender process.
The authority found that CSI attached manufacturer’s or service providers’ authorisation forms that lacked full guarantee and warranty.
PPRA also found that the company did not have valid manufacturer’s authorisation with regard to the grid control system.
“The Appeals Authority finds that the proposed successful tenderer failed to comply with a manufacturer’s authorisation requirement with regard to gas turbine, turbine air inlet chillers, grid control system and power transformers. Therefore, its tender ought to have been disqualified,” read part of the decision signed by PPRA chairman Justice (rtd) Sauda Mjasiri.
Thereafter, the government started a search for a new contractor from last year to complete the work.
The Kinyerezi I project is being implemented using government funds and will cost a total of $188 million (about Sh435 billion) upon completion.