JICA Pulls Plug On Kazungula Bridge Funding

Minister of Transport, Works, Supply and Communications Yamfwa Mukanga confirmed the development but could not disclose further details.
“They [JICA] have pulled out and we shall try to engage the African Development Bank (AfDB) to put in more resources, then we shall set the new date for ground-breaking which was supposed to have taken place last month. I will avail more details when I get back to the office since I am on leave,” Mr Mukanga said.
The surprise pullout by the Japanese development agency, which has been involved with the project from inception, has left the governments of Botswana and Zambia with a funding gap on the project since JICA committed to provide US$110 million of the total amount.
The project was to be funded by loans from the AfDB, JICA, as well as contributions from both the governments of Zambia and Botswana.
The project’s ground-breaking was initially scheduled for last month.
According to sources, before a tender could be awarded, a dispute arose over the technical evaluation of bids from three shortlisted firms. The firms included a joint venture between Japan’s Shimizu and South African Stefanutti, South Korea’s Daewoo Engineering and Construction, and China Major Bridge Engineering Corporation.
The two governments have since decided to award the tender for the construction of the bridge to Daewoo, while other components of the project which include the building of two one-stop border posts are yet to be awarded.
And one of the bidders, China Major Engineering, has since written the Road Development Agency (RDA) questioning the decision to award Daewoo the tender to construct the Kazungula Bridge.
China Major Engineering chairman Liu Ziming sought clarification of RDA’s decision to disqualify his company, which availed the lowest offer among the three bidders.
And Transport Hub Coordinator in the Ministry of Transport of Botswana Goitsemang Morekisi also confirmed that JICA has pulled out but was still expected to fund other components of the project.
“The delays in the construction of the Kazungula Bridge project were mainly due to JICA, the financier of the project disagreeing to the technical evaluation of the three bids which were submitted for the bridge, requesting for a re-evaluation,” Ms Morekisi told the Business Week publication of Botswana.
“In April 2014, ministers of transport of the two member states met with the Japanese delegation in Kasane, Botswana, to discuss the issues surrounding the tender evaluation. Following the meeting, the member states agreed to award the contract without the support of JICA,” she said.
If negotiations with Daewoo are successful, the issue will be referred back to ministers of transport with the contract mostly likely to be signed by this month.
Last month, AfDB president Donald Kaberuka toured the site and was shocked to see the huge economic cost incurred by the Southern African Development Community region due to delays in constructing the bridge.
Dr Kaberuka was surprised to see a long queue of trucks waiting to cross from either side of the border at Kazungula where transporters were using pontoons to move goods and vehicles across the Zambezi River.
“It is unacceptable to have about 100 trucks on either side of the Zambezi River taking up to two weeks at the border posts before crossing,” he said.

Daily Mail