- Tender initially awarded to China Jiangsu
- China Jiangsu awarded P112 m in successful litigation against WUC
An P800 million water treatment plant tender previously awarded to two Chinese companies has now been awarded to Khato Civils.
On 14 September 2020, Water Utilities Corporation (WUC) informed Khato Civils, South Zambezi Engineering Services, Ceenex, CMS Water Engineering CC, and NTR Technology Holdings Joint Venture that the tender committee had awarded them the contract at a meeting held on 3 September 2020.
The contract, Tender No: WUC 015 (2018, is for the design, supply, installation, construction and commissioning of Mmamashia Water Treatment Plant. “This work is awarded subject to confirmation of the quality service and specifications as per your tender proposal and that the price above is VAT inclusive and shall not change but remain fixed and firm until the completion of the assignment,” reads the WUC letter to Khato Civils, Chief Executive Officer (CEO), Mongezi Mnyani.
Khato Civils accepts offer
Mnyani has confirmed this and that his company has accepted the offer. “We have accepted the tender and details thereof are being finalised with Water Utilities Corporation,” he said. “Our key focus as Khato Civils is to execute the Masama-Mmamashia Water Project using our world-class engineering knowledge and state-of-the-art modem equipment.”
This tender has a winding history in that it was awarded to China Jiangsu International Botswana and Unik Construction Engineering in 2019. However, the Directorate of Intelligence and Security Service (DISS) got involved when it informed WUC that China Jiangsu was a security threat. In a breach of contract suit that followed, WUC was ordered by the courts to pay the two companies P112 million.
“The contract that the parties had entered into arising from the invitation to tender that was published by Water Utilities Corporation bearing reference, essentially, Design, Supply, Treatment Plant-Tender No. WUC 015 (2018) is here by terminated,” Justice Tebogo Tau said in his judgment.
“The Respondent (Water Utilities Corporation) agrees to pay the sum of P112 000 000.00 into the Trust Account of Tengo Rubadiri Attorneys on or before 1st June 2020, in full and final settlement of all contentions between the parties relating to the Invitation to Tender that was published by the respondent bearing the reference, essentially, Design, Supply, Treatment Plant – Tender No. WUC 015 (2018).”