Power utility ZESCO has disclosed that the local companies that supply wooden poles are not able to deliver the required number, specifications and quality of poles ordered, hence the reason why the utility has opted to import the poles.
This is despite earlier indications by both CFC and ZAFFICO that they are capable of meeting the order and that they had not been engaged by ZESCO before the company opted to shortlist and select foreign companies from South Africa and Zimbabwe to supply the poles.
Others local suppliers are accusing ZESCO of hiding behind the usual tricks in rendering of playing around with specification to justify the need to import and award tenders to foreign firms. It is a well know trick in tendering were some corrupt principals work backwards, you for instance find that local poles height is on average 15 meters and you indicate say 20 meters to disqualify the local pole suppliers.
But ZESCO has insisted that local companies are falling short on quality and has proceeded to award the tenders to foreign firms at the expense of local and even Lusaka Securities Exchange listed ZAFFICO.
Speaking in an exclusive interview with the Zambian Business Times – ZBT, ZESCO Spokesperson Henry Kapata said the local suppliers [ZAFFICO and CFC] have no capacity to supply 100% of the poles order and that they are unable to meet 100% pole quality requirement standards.
Kapata explained that this is not suggesting that ZESCO is ignoring local suppliers, but “what we are saying is that local suppliers are welcome. The local wooden pole suppliers are only capable of supplying 1.4% of the total requirement [that meets quality specifications], hence the need to go beyond borders”.
When asked by ZBT to disclose in terms of price points regarding which poles will have a more competitive landed cost between those supplied by local companies such as ZAFFICO and CFC compared to those to be imported from say South Africa?, Kapata stated that “the issue is not about who is cheaper but meeting the specifications of having quality poles.”
He said quality poles demand that a poles should be able to stand for twenty five years without having any challenges. “We go for quality and specifications, we may have certain local companies that are in business and if they are going to deliver poles that [are thin and] look like street pole lights, we cannot go for them. Am not saying there is anyone but specifications and quality is what will determine who to award the contract to deliver poles,” he said.
The ZESCO spokeperson said neither was he suggesting that the local companies cannot produce or supply quality poles, adding they can, but they are not meeting the demand. So this is why we are saying how do we dismantle the back lock of 67,000 people waiting to be connected, are we going to wait for the 1.4% to become 100%?, he asked.
He said ZESCO will not go beyond boarders if the local are producing and delivering the quality poles. The challenge ZESCO is currently facing with the Local suppliers is that they do not meet the demand whenever they are engaged.
ZESCO attributes this to the growth in the demand for power when it comes to connectivity and infrastructure development. Kapata further wondered what has changed now that a lot of people are questioning ZESCO when the utility has been importing poles since time immemorial.
