Botswana Power Corporation is currently implementing the Isang - Rakola 2 x 220kV 80 km Transmission Lines Project. The project will ensure that there is reliable power supply to Gaborone and its environs.
To undertake the project, the Corporation issued an open tender for international competitive bidding and this process was aligned to the Botswana Government procurement standards as well as BPC’s internal procurement policies and procedures.
This competitive bidding process led to the appointment of Kalpataru Power Transmission Limited, a company from India, in April 2015 as the main contractor.
The project, which is implemented under Turnkey contract commonly practiced in Botswana and international markets, has taken into consideration the possible risk implications of engaging multiple contractors. Through the Turnkey solution, the main contractor has total responsibility of timely procurement and delivery of the completed project to BPC.
The project is currently at 60% completion.
The purpose of this communique is to dispel recent misleading reports by unreliable sources concerning awarding of the tender and to inform the public that:-
- Compliance to procurement procedures was ensured, with vetting undertaken at each stage of the tendering process;
- The Isang-Rakola project is not World Bank funded but instead it is funded by Government of Botswana through the Ministry of Minerals Energy and Water Resources;
- The Turnkey contract is such that the two (2) contract partners are BPC and Kalpataru Transmission Limited. This being the case, the main contractor is thus responsible for the proposal of appointment of the subcontractors for BPC’s approval;
- In an endeavor to promote citizen empowerment, the Corporation encouraged the main contractor to utilise local resources where possible and these could be in a form of sub-contractors and/or manpower;
- The price of bush clearing was wrongly stated to be P10million when in fact the exercise was priced at P1.05million and this was not treated as an independent tender;
- Bush clearing exercise has been incorrectly communicated to have commenced in August 2015 before the main contractor appointed subcontractors for this exercise in October 2015, when in fact the site handover was done by BPC in October 2015 and bush clearing work followed in mid-November 2015;
- The Isang-Rakola 220kV Turnkey project is undertaken at the total contract value of P215million of which P123million is for design, procurement of materials and equipment which are obtained abroad. Approximately P92million of the total contract value is being spent on construction and installation locally. Out of the P92million approximately P52million is being spent on local services, material, personnel and sub-contracting; and
- The Isang- Rakola Transmission Lines Project has created employment for 237 citizens of Botswana who are engaged directly and indirectly with the main contractor Kalpataru Power Transmission Limited.