ZPC takes delivery of ‘scandal-ridden’ equipment for Hwange Power station expansion project

ZPC takes delivery of scandal-ridden equipment for Hwange Power station expansion project

The Zimbabwe Power Company (ZPC) this week took delivery of scandal-riddled equipment aimed at completing the US$1,2 billion Hwange Thermal Power Station expansion project.

The equipment’s prices have been under the spotlight with those tasked with purchasing accused of inflating prices by over 100%.

An HP heater, boiler heating surface, a coal pulverizer roller as well as the pulverised coal burner, are among the equipment that has arrive with the move expected to ease power outages.

The expansion project commenced in 2016 at an estimated cost of US$1. 2 billion with ZPC having been coerced to form a joint venture with Chinese firm Sinohydro Corporation through a special purpose vehicle called the Hwange Electricity Supply Company (HESC)as a precondition for the release of the funds from the Export-Import Bank of China.

Like any other power project underway in the country, the Hwange expansion programme has also been dogged by a fair share of scandals amid reports of price inflation.

Former ZPC Managing Director Robson Chikuri, who was recently demoted over the said allegations, has been under fire for inflating prices of Unit 4 Boiler Outage Works after the initial price increased from US$808 580 to US$2 205 306, a price adjustment of close to US$1,3 million.

In a letter dated 29 March 2019 directed to the ZPC Acting Managing Director following a Special Oversight Committee held on 21 March 2019, the Procurement Regulatory Authority of Zimbabwe (PRAZ) chief executive officer Nyasha Chizu raised the red flag over the issue of the four boiler outages.

Members of Special Oversight Committee noted that the previous authority granted by the State Procurement Board for unit 3 Boiler statutory outage works at Hwange Power Station in 2016 amounted to US$808,580.15 vs the current outage of US$2,205,306.95,” reads the letter.

Special Oversight Committee members demanded that the Accounting Officer explain the difference on the cost.

Documents state that “the members agreed to a no objection but subject to provision of clarification on the costs and highlighted that such evidence should be furnished to the Special Procurement Oversight Committee before contracting.”

Members indicated that the Accounting Officer should explain the variation on cost that is similar, members also expressed concern that there was no due diligence on cost.”

ZPC takes delivery of scandal-ridden equipment for Hwange Power station expansion project

You may also read:

Chivayo, ZPC Gwanda solar project scandal: Fresh details emerge

Chivayo Gwanda solar tender scandal: Twist and turns expose government, judiciary double standards

Zesa officials sign warned, cautioned statements over Gwanda Solar Project scandal

ZPC MD under fire for inflating Hwange Power station boiler price with over US$1,3…