MBABANE – The Eswatini Water and Agricultural Development Enterprise (EWADE) intends to award yet another tender to a company from Mainland China.
This time, EWADE, a government-owned company, has issued a tender notice on the intention to award a contract to ZTCS, which is a joint venture between Zhengtai Group and Cherry Splash (Pty) Ltd.
ZTCS’s intended contract is valued at E154 813 116.99. This is the proposed contract price.
The project is for the construction of the Mkhondvo-Ngwavuma Water Augmentation Programme (MNWAP) Phase I B Lot 2 – Secondary Distribution System.
The other project known as Mpakeni Dam is called Mkhondvo-Ngwavuma Water Augmentation Programme Phase IA (MNWAP). It is valued at E2.6 billion and is underway in southern Eswatini.
Phase 1A Lot 1is undertaken by Sakhalive Joint Venture (JV), which comprises China-based construction companies Sinohydro and China State Construction Engineering Corporation (CSCEC).
The first project undertaken by Sakhalive JV is financed by the African Development Bank (AfDB), while the second project received funding from the OPEC Fund for International Development, under Loan No. 15708P. It is part of a broader government push towards climate resilience and food security.
It is not clear whether Cherry Splash (Pty) Ltd is also from China, but both companies use addresses from Botswana, where they are also operating.
For the second time, local companies are apparently or technically missing out on the opportunity to participate in the dam project in the southern part of the country.
However, there are some chances if they successfully submit applications for tender review as stipulated in law.
During the evaluation, it must be said that the local companies qualified for the tender, but EWADE feels they were outpriced.
One of the local companies is said to have overpriced by E16 476 235.06 against the ZTCS pricing. This is in reference to prices read out at tender opening.
EWADE stated in the notice that all the local companies were financially able to undertake the project, but were outdone by pricing higher than ZTCS.
According to EWADE, the intention to award the contract to ZTCS is based on Section 45 (3) (b) of the Public Procurement Act.
EWADE stated in the notice seen by this newspaper that the intention to award does not constitute a contract.
“Please note that the above contract award decision does not constitute a contract,” reads the notice.
It must be said that the public enterprise has advised bidders that a period of 10 days is allowed for submission of any application for review from the date of the notice.
“To ensure that review procedures for effective remedies are available to any concerned bidder, bidders are to notify or request a debriefing within three days of the receipt of the intention to award notice in accordance with Sub Clause 46.1, Section 1 – Instruction to bidders,” reads the tender notice – intention to award contract signed by Dr Samson Sithole, the Chief Executive Officer of EWADE.
The MNWAP is part of the Mpakeni Dam, which was also constructed by a Chinese joint venture.
Research has shown that Zhengtai Group was founded in 1984 by Nan Cunhui in Wenzhou, Zhejiang Province, China.
It specialises in low-voltage electrical products, power transmission and distribution equipment, instruments, meters and building automation.
It is said that it has expanded internationally and has business presences in multiple countries.
Zhengtai Group’s headquarters is located in Yueqing, Wenzhou, Zhejiang Province, China.
Investigations have also shown that it is not a single entity, but a collection of different Chinese companies, including a large construction group based in Wenzhou, a machinery equipment company specialising in cutting saws and a materials technology company (Fujian Kuncai) founded by Xie Bingkun, which later developed a related ‘Zhengtai New Materials’ business unit focusing on titanium dioxide.
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Navigating Eswatini’s diplomatic dilemma with China and Taiwan
MBABANE – The recent actions taken by the Eswatini Government—welcoming Chinese companies for mega projects while diplomatically claiming to have no official ties with China—present a complex and precarious scenario for this the kingdom.
This situation raises crucial questions, not only about economic fairness and development, but also about Eswatini’s unique position as the only African nation that formally recognises Taiwan.
Without a formal trade agreement with China, local citizens and businesses are being left out of the actual benefits.
China’s discriminatory imposition of tariffs on Eswatini, while providing zero tariffs to other African nations, only exacerbates a growing economic disparity.
Moreover, the suspension of visas for emaSwati citizens trying to enter China raises serious concerns about the mutual respect that should underpin international relationships.
An International Trade expert says: “Since Eswatini Government has fully embraced China commercially, they should work towards formalising a trade agreement with China could provide a framework that ensures fairness for local enterprises and promotes sustainable development.
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Bidders advised to meet certain requirements
MPAKENI – Bidders were advised during the process to meet certain requirements.
The requirements included the following:
- Demonstration of substantial construction equipment holdings, proven either by ownership or lease agreements.
- Submission of comprehensive technical bids, including methods of work, proposed personnel, scheduling and machinery plans.
- Legal, financial and ethical standing wherein firms must be autonomous entities, not blacklisted and free from conflicts of interest or recent sanctions.
- Corporate structure details whereby joint ventures must specify each member’s contribution and authority.
- Adherence to international standards of conduct, including stringent environmental, social, and anti-harassment commitments.
The Times SUNDAY can mention that a bidder’s technical bid was expected to comprehensively address all these requirements.
It was specified in the tender document that further details might be requested by the employer during evaluation.
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Trade links can benefit Eswatini – CANGO
MBABANE – Eswatini can benefit from trade ties with China.
This was said by Thembinkosi Dlamini, the Executive Director of the Coordinating Assembly of Non-Governmental Organisations (CANGO).
Dlamini is an economist and has worked for the Ministry of Finance.
Eswatini has diplomatic ties with Taiwan. However, diplomatic ties are different from trade relations. Mainland China and Taiwan maintain trade relations as well.
The economist and CANGO executive director said Eswatini cannot afford to continually downplay the issue of Mainland China.
As a smaller, fragile economy, he said numerous socio-economic, political and other benefits can be derived from such diplomatic or rather trade ties.
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Bidders faced vigorous auditing
MPAKENI – It has been learnt that bidders, their agents and any subcontractors faced auditing.
They were advised to fully cooperate with funder oversight.
EWADE warned that companies should be free from recent fraudulent activity, global sanctions or conflicts of interest. Notably, State-owned enterprises were also eligible to participate in the tender, provided they demonstrated true legal and financial autonomy from the State and strictly operated on commercial terms.
The document highlighted that any changes in a bidder’s ownership or joint venture composition after prequalification, but before bid submission, require written approval from EWADE, failing which a bid may be rejected to protect fair competition.
The MNWAP project, once in operation, holds the promise of more secure, reliable water access for both farms and households across south-eastern Eswatini.
*Full article available in our publication.
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