Wicknell Chivayo gets yet another POWER DEAL. The undefeated Businessman Wicknell Chivayo‘s firm has won another power tender, this time to refurbish Munyati Power station. Munyati Power Station will have its electricity generation capacity restored to 100 megawatts after Indian firm, Jaguar Overseas Limited (JOL) and its local partner were awarded the engineering procurement tender to refurbish the plant.
Jaguar Overseas, backed by its local partner Intratrek Zimbabwe Limited, was awarded the rehabilitation tender at an EPC price of $113 million excluding taxes, as the efforts to solve Zimbabwe’s debilitating electricity woes gather pace.
The State Procurement Board finalised the tender last Thursday to facilitate the upgrading of the Munyati Power Station. The outdated power plant is currently generating 19MW. Zimbabwe faces critical power shortage with generation averaging 900MW against national peak period demand of 2 200MW. The situation has been worsened by reduction of output at Kariba due to concerns on the drastic fall in the dam’s water levels.
In a complex three envelope tender process that closed in August 2014 the stringent tender process required, among other conditions, the bidding consortium to be led by a company with more than five years experience in similar projects. The tender required a robust balance sheet and annual turnover in excess of $50 million for the past five consecutive years and in addition to competitive commercial (price) proposal, winning bidders were required to meet a wide scope of works.
These included replacing 15 existing boilers with modern technology, refurbishing 2 x50MW steam turbines, overhaul of cooling towers and water treatment plant, carrying civil works, dredging and rehabilitating a weir on Munyati River for water supply. Out of 72 foreign and four local firms that attended the compulsory site visit, only seven bids were eventually submitted.