Escom gensets deal attracts ACB probe
The Anti-Corruption Bureau (ACB) has opened an investigation into the procurement of the multi-billion kwacha generators contract at the Electricity Supply Corporation of Malawi (Escom).
ACB senior public relations officer Egrita Ndala told Nation Online that the graft-busting body was conducting investigation at Escom relating to the procurement of the generators.
However, she said she could not discuss the scope of the investigations.
“The Anti-Corruption Bureau is conducting an investigation at Escom with regard to the procurement of generators. The investigation is related to the 2017 procurement process,” she said.
But she said the investigation will not affect the operation of the generators as the bureau does not have plans to suspend their usage since it does not affect the investigation process.
In August 2017, the Office of the Director of Public Procurement (ODPP) stopped Escom from awarding a contract to supply 78 megawatts (MW) diesel-powered generators to Aggreko Power Solutions because of procurement irregularities.
However, in January this year, President Peter Mutharika commissioned 55MW diesel-powered generators in Blantyre that Escom—using a single sourcing procurement method—hired from Aggreko Power Solutions, the same company the ODPP had ordered the cancellation of its contract.
In the initial procurement process, nine companies, Jocobsen Elekro AS, Aggreko, AKSA Enerji Rental Power, APR Energy, Almagamated Power Solution (APS), Altaaq Global CAT, So Energy International, Greenheart Energy Limited and Sino Hydro were shortlisted for supply of three generators that were to be stationed in three lots each at Mapanga in Blantyre, Kanengo in Lilongwe and Chinyama in Kasungu.
An Escom evaluation team then recommended that lots 1 and 2 be awarded to APR Energy and lot 3 to Aggreko International Projects. However, another evaluation was undertaken that awarded all the three lots to Aggreko, a move that forced some of the bidding companies to complain to ODPP.
In its findings, the ODPP faulted the evaluation process, saying it was not property concluded and ordered the cancellation of the awarding of the contract to Aggreko Power Solutions and asked Electricity Generation Company (Egenco) to restart the procurement process.
In the meantime, Escom is getting an additional 23MW of emergency power supply from Aggreko through additional generators that Aggreko is already installing at Chinyama to complete the contract to supply 78MW of power to Escom.
Malawi opted for diesel-powered generators as an interim measure to improve power supply in the wake of reduced hydro-electric power generation following low water levels in Lake Malawi and its sole outlet, the Shire River, where over 90 percent of the country’s electricity is produced.
Currently, Nkula A, is undergoing rehabilitation and modernisation under the Millennium Challenge Corporation (MCC) energy compact. The project will see Nkula A’s capacity increased from 24MW to 36MW and an upgrade of the power transmission infrastructure.
