KZN water supply project on hold amid tender dispute

The implementation of a huge multibillion-rand KwaZulu-Natal water project to augment supply to eThekwini and uMdoni has been temporarily suspended.

This comes after a joint venture — comprising Sandton-based China State Construction Engineering Corp (CSCEC) and Base Major Construction from Midrand — hauled state-owned water company uMngeni-uThukela Water to the Pietermaritzburg High Court after it rejected the joint venture’s R5bn bid, which was almost R2bn lower than that of the winning bidder.

The preferred bidder, Icon Construction, a company based in Mount Edgecombe, got the green light for its R7bn bid for the construction of waterworks in phase two of the lower Umkhomazi Bulk Water Supply Scheme.

Umngeni-uThukela Water confirmed an agreement was reached that the contract would not be awarded until the court application was completed.

“As uMngeni-uThukela Water, we have — by mutual agreement with the complainant — temporarily suspended the implementation of the Lower uMkhomazi Water Project pending the finalisation of court processes. We remain committed to a speedy resolution to this matter to proceed with the urgent task of completing the Lower uMkhomazi Water Project,” spokesperson Siyabonga Maphumulo said.

Umngeni-uThukela Water is the largest supplier of bulk potable water in KwaZulu-Natal. The utility reports directly to the provincial department of water and sanitation.

CSCEC and Base Major Construction filed a two-part application to the court, with part A seeking to “restrain and interdict the implementation” of the tender, while part B seeks to review and set aside the award of the contract.

The joint venture seeks to set aside the decision of the bid adjudicating committee to reject their bid and award the tender to Icon Construction.

KwaZulu-Natal is experiencing a water supply crisis due to infrastructure problems, financial constraints and population growth. The project involving the transfer of water from the Umkhomazi River to the existing Umgeni system is aimed at meeting long-term water requirements in the growing Durban and Pietermaritzburg areas.

The department’s pre-feasibility investigations found the scheme was the most feasible solution to meet the long-term water supply challenges in that part of the province.

According to the consent order issued by the Pietermaritzburg high court, the parties agreed that “pending the final determination of part B, the respondents are interdicted from taking any steps to implement” the awarding of the tender.

In an affidavit filed in the court, Chao Wang, a director of CSCEC, said their bid was unlawfully rejected and disqualified on invalid grounds.

Wang said uMngeni-uThukela Water stated in a rejection letter, sent in October, there were “critical deficiencies” in their bid relating to the translation of Chinese work completion certificates, after a decision by the utility’s bid adjudicating committee.

The rejection letter, attached to court papers, states: “According to a rule ... of the SA High Court ... the document must be signed in the presence of the notary public because the translation company is based in the UK.”

The utility had also stated that personnel set to work on the project “lacked adequate experience” and that the applicants had omitted pricing essential items in their bid’s bill of quantities, which could lead to “contracting risk” as about R503m was unaccounted for.

Wang said that despite lodging a formal appeal in November, they were never presented with an outcome.

The matter will be heard soon.

TimesLIVE