Controversy in Lesotho's M55 Million Substation Contract Award
The awarding of a M55 million contract for the Ha-Tikoe Substation upgrade to Jiangsu Etern has sparked significant procurement controversy in Lesotho. Allegations of improper authority and lack of transparency have emerged, raising concerns about compliance with procurement regulations and project governance.
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The Lesotho Ministry of Energy awarded a M55 million contract to Jiangsu Etern for upgrading the Ha-Tikoe Substation, despite allegations that Principal Secretary Tankiso Phapano lacked the authority to issue the award. The project aims to enhance capacity from 20MVA to 40MVA to improve electricity supply to industrial regions.
The World Bank has advised prioritizing the completion of the delayed Ha Belo Substation, which is expected to create over 3,000 jobs, before proceeding with the Tikoe project. Previous bidders have raised concerns about a lack of transparency in the procurement process, as they were not formally notified of the outcome, contrary to the Public Procurement Act of 2023.
The contract signing process faced delays due to World Bank interventions and investigations into the procurement process. Questions remain regarding the selection of Jiangsu over local contractors with lower bids and relevant experience. The situation highlights ongoing issues of governance and management in Lesotho's energy sector, particularly surrounding previous projects marred by corruption allegations.
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