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Infrastructure Brief

News and opinion on public works procurement

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Africa

  • Africa|
  • Kenya News|
  • Tenders
  • Kenya: MP’s Reject Bill Banning Foreign Firms From Public Tenders

    by Kevin Davids
    March 23, 2020

    March 23, 2020 By Kevin Davids

    A Kenyan parliamentary committee has slammed the brakes on a bill that sought to stop foreign firms from taking part in public tenders below Sh1 billion and jobs Kenyans can do.

    The National Assembly’s Finance and National Planning committee has rejected the bill sponsored by Mathira MP Rigathi Gachagua that proposed changes to the procurement law.

    Mr Gachagua wanted the limitation to promote local industries with the external firms only getting tenders if Kenyan firms lacked capacity.

    Kenya has become an attractive destination for foreign contractors in recent years, especially those from China who have bagged many road and construction jobs.

    He further wanted the amendment to prescribe a stiff penalty for people registering firms on behalf of non-Kenyans eyeing tenders within the threshold.

    “The committee observed that the Public Procurement and Asset Disposal (Amendment) Bill may present challenges in implementation as there may be limited local capacity to provide goods, works and services as envisioned by the sponsor of the bill,” said the committee chair and Ainamoi MP Joseph Limo in the report to the House dated March 11, 2020.

    In rejecting the proposals, the committee further argued some contracts below Sh1 billon may require specialised capacity that may not be locally available.

    “For instance, printing of ballot paper in a by-election would cost less than Sh1 billion, however, due to the sensitivity of printing the same locally, the contracts can only be executed by a foreign company so as to safeguard the integrity of the election,” said the committee.

    “The committee recommends that having considered the bill, clause by clause and based on its observations, proposes to the House that the bill be deleted in its entirety,” Mr Limo said.

    The committee further rejected proposals by Roads and Civil Engineering Contractors Association, Energy Sector Contractors Association and Michael Olunja who submitted amendments by way of memorandum.

    Energy Sector Contractors Association proposed that the Act be amended to ensure that all materials, goods and services to be used in any procurement which are available locally be sourced exclusively from suppliers in Kenya.

    Roads and Civil Engineering Contractors Association wanted any procurement of less than Sh3 billion in respect of any infrastructure project be tendered and awarded to a local firm.

    Filed Under: Africa, Kenya News, Tenders

  • Africa|
  • Health & Education
  • Nigerian Doctors Strike As Coronavirus Cases Grow

    by Kevin Davids
    March 20, 2020

    March 20, 2020 By Kevin Davids

    Nigeria successfully managed an Ebola outbreak, but COVID-19 is a very different matter.

    Nigerian doctors in the capital, Abuja, have gone on strike, demanding two months’ back pay, despite the steady rise in coronavirus cases in the country.

    The doctors said it was a difficult decision.

    There have been a total of 12 confirmed coronavirus cases in Nigeria. The latest were four new cases were detected in Lagos State – Nigeria’s commercial capital. Two of those who tested positive had recently travelled to Europe, the others had not left the country.

    Nigeria is tracing the contacts of all current cases. “We are following over 1,300 people right now to find information about the state of their health and the number is increasing,” said Lagos Commissioner for Health, Akin Abayomi.

    Nigeria’s first case of Ebola in 2014 also came through Lagos airport, but an aggressive and coordinated response brought the outbreak under control. A new Lancet study suggests that may not be the case with COVID-19. It rates Nigeria as having only “moderate capacity” to control the outbreak – noting the lack of bed space and clinical care, among other problems – should coronavirus takes hold in a population of 200 million.

    Nigeria has closed its borders to 13 countries, including the US and UK. But it’s a largely informal and trading economy, and business is expected to take a significant hit. As a result of tumbling oil prices, Nigeria is already considering cutting its $37 billion budget – passed only in December – by as much as 14 percent.

    Filed Under: Africa, Health & Education

  • Africa|
  • Congo News|
  • Energy|
  • Water
  • DRC Moves To Revive Grand Inga Dam Project

    by Kevin Davids
    March 19, 2020

    March 19, 2020 By Kevin Davids

    The Democratic Republic of Congo is looking to breathe new life into the Grand Inga Dam project, which is said to be the world’s largest proposed hydroelectric scheme that could produce sufficient energy to power east, central and southern African countries.

    The project on the Congo River could have up to eight separate dams that would produce 43,500MW (4.35GW) of electricity – more than twice the power generation of Three Gorges Dam in China, and over a third of the total electricity currently produced in Africa.

    But since mooted ten years ago, it has faced delay over several issues such as contractors, timelines and funding sources for the $80 billion needed to finance the construction of the dams and the establishment of transmission lines.

    That will be the focus of discussions when leaders from concerned regions meet in a conference next month, which is organized by President Félix Tshisekedi of the DRC and is expected to be attended by delegates from Angola, Kenya, Republic of Congo, Rwanda, South Africa, and Uganda. The April 28 meeting in Kinshasa is backed by the African Union while Egyptian head Abdel Fattah al-Sisi and potential investors have been invited to help kick off the project.

    In addition to discussing the feasibility of the Inga Dam project, officials say the move by Tshisekedi is meant to garner regional political support for the mega power project that is seen as the ultimate solution for Africa’s power shortage and green energy.

    DRC hosts the largest concentration of hydropower potential in the world at the Inga Falls, about 150 km from the mouth of the Congo River. With this, the country could provide a significant portion – up to 40 percent – of Africa’s electricity demand but harnessing that potential has not been particularly easy.

    The country presently has two Inga projects that were completed in the 1970s and 1980s respectively. And in late 2018, authorities announced a deal for a Spanish-Chinese consortium to develop the Inga 3 project on the Congo River rapids, which is one of the world’s most powerful and centre to the country’s energy plans.

    But the joint venture idea was resisted last year. Spanish firm ACS withdrew from the possible consortium that included China’s Three Gorges Corp and could have seen $14 billion invested in the third dam with funding from the African Development Bank.“There has been an Inga 3 development agreement for a few years now. But we can go from Inga 1 to Inga 8,” DRC Minister of Water Resources and Energy, Eustache Muhanzi Mubembe, said.

    General Electric has been contracted to renovate the neglected Inga 1 and 2 dams and will be working on Inga 3 after signing an agreement worth $1 billion – the largest U.S. investment in Congo. But the deal with the American firm does not prevent other partners from being part of the project, according to Mubembe.

    “The development agreement remains open. We have had Chinese and Spanish contractors since 2016 on the Inga 3 development agreement. And there are Spanish contractors who have left the agreement. Nobody chased them away. The DRC would like to have everyone in it. Americans, Chinese, Indians, Egyptians…are all welcome,” the minister was quoted as saying by The East African.

    AfDB will be funding the redesign of the Inga 3 dam, Tshisekedi said in a recent State of the Nation address. That would raise the output from the initial 4,800 megawatts to reach 11,000 megawatts or more, and Inga could make DRC “the heart of the world’s clean energy production system,” the President added.

    With AfDB’s permission, the DRC is now inviting bidders while officials are in talks with the regional bank for an agreed date to commence construction. Confirmation is expected in the next few days, Mubembe said.

    A major and recurrent barrier to implementing the hydropower project after many years of conception was the political instability in the DRC. With relative stability now in the country after President Tshisekedi came into power last year, the DRC is moving fast to revive the mega-project that could also help save its endangered forest resources.

    Filed Under: Africa, Congo News, Energy, Water

  • Africa|
  • Energy|
  • Project Updates
  • Libya Begins Construction of Kufra Solar Plant

    by Kevin Davids
    March 19, 2020

    March 19, 2020 By Kevin Davids

    Construction of a 100MW solar photovoltaic power plant in the town of Kufra in south-eastern Libya has commenced. Prime Minister of the Eastern Government Abdullah Thinni launched the project and laid the foundation stone for the construction.

    The solar project is in line with the 2030 vision of the General Authority for Electricity and Renewable Energy, based in the East, which aims to exploit alternative and clean energies, particularly solar and wind power.

    The power plant will occupy an area of 200 hectares and construction has been entrusted to a Chinese company. Upon completion,it will reinforce the electricity network of the city of Kufra, which is currently supplied by a thermal power plant consisting of 3 units of 25 MW each. The power plant has been out of service for several months due to a fuel supply problem following the unrest in this North African country. Two of the three units of the thermal power plant have recently been rehabilitated.

    Libya is one of the countries blessed with high potential of solar and wind energy. The country currently produces energy of 33 TWH to meet the demand on the local electricity market.

    The demand on energy will substantially increase in the near future,leading to more consumption of oil and gas which causes a reduction in the national economical revenue and more carbon dioxide emission.

    In 2013, the Libyan government launched the Renewable Energy Strategic 2013-2025 Plan, which aims to achieve 7% renewable energy contribution to the electric energy mix before end of 2020 and 10% by 2025. This will come from wind, Concentrated Solar Power, solar PV and solar heat.

    Filed Under: Africa, Energy, Project Updates

  • Africa|
  • Energy|
  • Tenders|
  • Water
  • Angola, Namibia To Launch Tender For Baynes Dam Construction

    by Kevin Davids
    March 19, 2020

    March 19, 2020 By Kevin Davids

    The governments of Angola and Namibia have signed bilateral agreements for the construction of a cross border Baynes hydroelectric dam. Angolan Minister of Energy and Water H.E. João Baptista Borges made the announcement and said the agreement will enable the launch of a public tender for the selection of a construction firm for the project, in line with the proposed timeline.

    “If we stick to the schedule of the agreement, we can comply with the deadlines, because there is a great interest in this bi-national project,” said Minister João Baptista Borges.

    Construction of the Baynes hydroelectric dam falls within Angola’s Energy 2025 Vision, which centers on creating increased capacity and distribution capabilities, supported by new renewables and private sector investment in new power generation projects. The planned hydroelectric dam will be located on the Cunene River on the border between Angola and Namibia.

    Construction is scheduled to begin in 2021 and a completion date scheduled for 2025. It is estimated to cost US $1.2bn; feasibility studies for the project was already carried out. According to the agreement, of the 600 MW to be produced by the plant, 300 MW will be directed to Angola and Namibia, respectively.

    Namibia has enormous potential for solar energy production. The country is the driest on the African continent, with 300 days of sunshine per year. The country is aiming for 70% of its installed electricity capacity to come from renewable sources by 2030. Angola on the other hand has only 14MW of non-hydro clean energy generation capacity, all of it off-grid. The country renewable energy plan is targeting 800MW of capacity, including wind and biomass.

    Filed Under: Africa, Energy, Tenders, Water

  • Africa|
  • Uganda News
  • EU To Invest €646M In Uganda

    by Kevin Davids
    March 18, 2020

    March 18, 2020 By Kevin Davids

    The European Union (EU) is set to invest some Shs 2.7 trillion (about €646 million) in Uganda in the next five years.

    This was revealed by the European Union head of delegation to Uganda, Ambassador Attilio Pacific on Tuesday at the first Uganda-Europe Business Forum.

    Ambassador Pacifici told President Yoweri Museveni that the EU is to invest the finances over the next five years starting in the next financial year. He noted that the EU contributes greatly to the development of Uganda, and that a recent survey carried out by EU, indicates that as of 2017, there were 107 European investors or firms in Uganda with an investment value of Shs 1.99 trillion approximately (about €427 million).

    “They have created 32,524 jobs through investments in different areas. They have invested in agro-processing, services sector (hotels, lodges and others), the manufacturing sector and others…This is extremely important for us and this is the kind of partnership that we want. We were pushed by the president and it is important we emphasize the private sector and investment promotion,” Pacifici said.

    Pacific noted that there are several enablers that the EU needs to support and focus their investment on including skills and attitude development, access to finance, governance and corruption.

    Matia Kasaija, the Minister of Finance said that the new Uganda-Europe Business Forum will go a long way in fostering business between Uganda and Europe.

    “The EU is one of the biggest trade partners with Uganda. In 2018, the trade accounted for €989 million of which €473 million were exports. The volume of this trade can be tripled if the existing bottlenecks can be solved,” said Kasaija.

    He also applauded the European Union for being one of Uganda’s partners that have continued to provide grant financing in the areas of trade and investment.

    “Today, we are signing three grant financing agreements worth 85.9 million Euros that will support various projects and programs in Uganda. Budget support is 32 million euros, green economy 45 million euros and technical support is 8.9 million euros,” said Kasaija.

    Kasaija noted that trade and investment were the best ways to support any country. Ambassador Pacifici noted that in the two-day Forum, they focused mainly on how the European Union can invest and work with the private sector to spur development.

    He revealed that the Uganda-Europe Business Forum will from henceforth be carried out for the next five years and that the EU will be providing financial assistance to the private sector to enable it to happen.

    Filed Under: Africa, Uganda News

  • Africa|
  • Public Spaces|
  • Tanzania News
  • Tanzania Reconstructs Judiciary Offices

    by Peter Orengo
    March 13, 2020

    March 13, 2020 By Peter Orengo

    THE Judiciary of Tanzania has started the construction of six High Court buildings to be known as Integrated Justice Centres (IJC), a major project to be implemented in five regions of Dar es Salaam (which will have two buildings), Mwanza, Dodoma, Arusha and Morogoro.

    Such court buildings are like one stop centre, meaning that one building will accommodate all judicial services from Primary Court level to the Court of Appeal.

    Thus, IJC will comprise the Primary Court, the District Court, the Resident Magistrates’ Court, the High Court and the Court of Appeal.

    According to information published on the Judiciary’s website, the Constitutional and Legal Affairs Standing Committee started last week visiting the construction projects of various court buildings implemented countrywide and has been satisfied with the construction progress.

    Filed Under: Africa, Public Spaces, Tanzania News

  • Africa|
  • Featured|
  • Tanzania News|
  • Tenders|
  • Transportation
  • Tanzania Launch Tender For Railway Line To Rwanda

    by Peter Orengo
    March 12, 2020

    March 12, 2020 By Peter Orengo

    The government of Tanzania has announced plans to invite international tenders for the construction of a standard gauge railway (SGR) from Isaka dry port to neighbouring countries of Rwanda and the Democratic Republic of Congo (DRC). Hassan Abbasi, chief government spokesperson and permanent secretary for the Ministry of Information, Culture, Arts and Sports revealed the plans and said that the government is in its final touches of negotiations.

    “Tenders for the construction of the SGR project to Rwanda and DRC will be announced anytime from now, President John Magufuli had already given directives on construction of the Mwanza-Isaka SGR that will connect to the two neighbouring countries,” said Hassan Abbasi.

    The chief government spokesperson also confirmed that feasibility studies for the SGR linking Tanzania and Rwanda have already been undertaken, adding that the two countries were now looking for financiers of the project. The rail link project is part of a US $14.2bn plan to build around 2,500km of standard gauge rail lines in the country over the next five years.

    It is intended to reduce road congestion and decrease freight costs by 40%. Each freight train is expected to transport up to 10,000 tonnes, equivalent to 500 lorry-loads. It will also connect Tanzania to Burundi and Uganda, making it an important enabler of regional integration.

    Tanzania will become the third country in East Africa to start enjoying modern railway services after Kenya and Ethiopia. Kenya was the first country in the region to start the construction of an SGR line, completing over 500km between Mombasa and Nairobi, and also inaugurating its passenger services in June 2017.

    Filed Under: Africa, Featured, Tanzania News, Tenders, Transportation

  • Africa|
  • Featured|
  • Kenya News
  • Kenya’s Airport Authority Commissions 4 Fire-Fighting Trucks

    by Peter Orengo
    March 11, 2020

    March 11, 2020 By Peter Orengo

    The Kenya Airports Authority (KAA) has commissioned four new airport rescue and fire-fighting trucks acquired at a cost of Ksh 369 million.

    The four trucks are destined for use at the Moi International Airport (MIA), the Kisumu International Airport (KIA), the Eldoret International Airport (EIA) and Lodwar Airport.

    The firefighting trucks are in addition to two which were commissioned in March last year and at the Jomo Kenyatta International Airport (JKIA) as part of the ongoing modernisation of local airports and airstrips in the country.

    The trucks include three Mercedes Benz Titan trucks with engine capacity of 700 horsepower, a top speed of 120 kilometres per hour with acceleration of 80 kilometres per hour in 25 seconds. With a weight of 34 tonnes the trucks carry a water and foam capacity of 12, 500 litres and 1,500 litres respectively.

    The other truck is a Mercedes Benz AROC with an engine capacity of 456 horsepower, a top speed of 100 kilometres per hour with an acceleration speed of 80 kilometres per hour in 27 seconds. The truck has a water capacity of 5000 litres and a foam capacity of 600 litres.

    Filed Under: Africa, Featured, Kenya News

  • Africa|
  • Featured|
  • Public Spaces|
  • Tanzania News
  • Tanzania Mobile Money Market To Reach $215 Billion In 4 Years

    by Peter Orengo
    March 11, 2020

    March 11, 2020 By Peter Orengo

    The latest report by IMARC Group, titled “Tanzania Mobile Money Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2019-2024”, finds that the Tanzania mobile money market size reached US$ 45.5 Billion in 2018.

    Mobile money refers to a service in which the users can pay bills, transfer funds between banks or accounts and deposit at or withdraw funds via mobile phones. These services have emerged as a powerful tool for strengthening financial access in developing markets.

    Tanzania has experienced robust growth in the use of mobile money since the service was first introduced in the country in 2008. Over the years, it has evolved beyond the simple transfer of money, allowing people to save, insure and borrow money.

    At present, a significant percentage of Tanzanians have registered mobile money accounts and the country represents one of the leading mobile money markets in the world.

    Mobile money, also referred to as a mobile wallet, is a payment method that allows users to pay bills, transfer funds between banks or accounts and deposit or withdraw funds using mobile phones.

    From simple transfer of money, this method has now enabled people to save, insure and borrow money as well in a convenient manner, owing to which it is gaining preference among consumers.

    The use of mobile money has witnessed strong growth in Tanzania since its introduction in the country in 2008. It currently represents one of the leading mobile money markets in Africa, owing to the increasing usage of mobile phones for financial transactions.

    A significant percentage of Tanzanians have registered mobile money accounts, which help them to execute these transactions in a relatively reliable and inexpensive manner.

    Moreover, the growing number of partnerships between mobile money operators and international money transfer services like MoneyGram and Western Union has facilitated users of different service platforms to transact directly with each other.

    This has provided operator-to-operator international money transfer interoperability, which, in turn, is creating a positive outlook for the market. Other factors, such as urbanization, increasing digital literacy, along with an overall improving education system enabling the social and economic empowerment of individuals, are also contributing to the market growth.

    Filed Under: Africa, Featured, Public Spaces, Tanzania News

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