ZESCO Approves Multi-Million Tender for Wooden Poles Amid Heightened Scrutiny

ZESCO Approves Multi-Million Tender for Wooden Poles Amid Heightened Scrutiny

At its recent Special Meeting Number 5 for the 2024 financial year, held on October 31, the ZESCO Procurement Committee approved contracts worth millions for the supply and delivery of wooden poles, set for a one-year term. The decision, guided by the Public Procurement Act No. 8 of 2020 and its 2023 amendment, represents one of ZESCO’s largest procurement initiatives this year, aimed at meeting the growing demands of the country’s power infrastructure.

According to ZESCO, contracts will be awarded to the named suppliers after a five-day notification period, in line with procurement regulations. The tendering process adhered to Open National Bidding (ONB) guidelines, which prioritize fully Zambian-owned firms in a bid to empower local businesses. However, among the successful bidders is a company that, while registered locally, has a mixed ownership structure involving two Zambian stakeholders and one Spanish shareholder. The inclusion of such a firm, potentially falling into the second-tier of local bidders as per the ONB guidelines, has piqued interest given that the first tier prioritizes fully citizen-owned entities.

The successful bidders include Inverter Energy Zambia, with awarded bids at R32 million, R29 million, and R22 million. While the criteria and assessments that informed ZESCO’s decision have not been fully disclosed, this partial foreign ownership is likely to draw the attention of local stakeholders keen on ensuring that ONB regulations strictly favor Zambian businesses first.

As the contracts proceed, scrutiny may intensify over how these legal provisions were applied, particularly as Zambia seeks to reinforce transparency and accountability in public procurement. For now, the awarded companies await final approval to begin their work, while the broader public watches closely, underscoring the delicate balance between foreign partnerships and empowering local businesses in Zambia’s energy sector.

Monica Nsondo

Click here Notice of Best Evaluated Bidder – ZESCO-ONB-045-2024
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