Zimbabwe: PPC is under fire from local construction companies that have accused it of sidelining them in the construction of a new cement plant in Ruwa in favour of foreign companies, as reported by All Africa.
According to 'inside sources,' local companies submitted bids, but these were rejected due to a directive from the cement company's head office to sideline local companies and renegotiate a new contract with the main contractor, China's Sinoma International Engineering. The Chinese company was already undertaking construction works at the cement plant. Sources have said that since the beginning of construction, no projects have been awarded to local firms, which claim to have the same technical ability and expertise as the foreign companies.
"PPC is constructing a cement plant in Ruwa and is using only Chinese contractors to build the plant at the expense of local construction companies with the same capacity. Local companies submitted bids and none of them got a contract," said one unnamed source.
Another source said that a Chinese workforce drove the whole construction project being executed by Sinoma, which was against the Zimbabwe Agenda for Sustainable Socio- Economic Transformation Agenda's goal of creating jobs. "A number of local indigenous companies have tendered for various technical expertise, but none of them have been recognised. We believe that in order to empower local companies, there should be joint ventures between the foreign companies and locals to get a win-win scenario," said the source.
PPC managing director Njombo Lekula said that the company had engaged Sinoma on an engineering, procurement and construction management (EPCM) arrangement. He said that the EPCM was a common form of contracting arrangement for very large projects within the infrastructure, mining, resources and energy industries. "We engaged the Chinese in an EPCM arrangement and the contractor is the one that knows how to execute the project. Right now, Sinoma employs 60 locals, which I think is a large number. Due to the arrangement it is obvious that the contractor will provide for all the materials required, but we told them that we need a quarter of local supply as well. The claims are baseless considering that we contracted also JR Goddard construction to do our road and sewer reticulation works for US$700,000. So to say we are sidelining locals is unfounded," said Lekula. He added that the company would continue to empower local companies and suppliers. For example, an indigenous company has been awarded a contract to do all of the rail infrastructure at the plant at a contract value of about US$3m.
PPC expects to complete the construction of its 1Mt/yr capacity cement plant in the first half of 2016 with an investment of about US$86m having been made towards the project so far. The project would cost a total of US$200m after completion, with the investment package set to aid the setting up of another plant in Mashonaland Central. PPC is also building a separate grinding facility in Mozambique's Tete Province.
