The State Procurement Board awarded the tender to China Jiangxi Corporation, which submitted the lowest bid of US$184 million to supply the 100 MW solar PV plant.
However, the board states that China Jiangxi then tried to increase the price to US$207 million arguing that the new price included duties and taxes.
Cledwyn Nyanhete, principal officer of the State Procurement Board, said the reasons for increased costs were not justifiable and in contravention of the Procurement Act, and on July 31, 2014 wrote to China Jiangxi cancelling the tender.
When the Zimbabwe Power Company (ZPC) went back to the two losing bidders – Intratrek Zimbabwe and ZTE Corporation – they agreed to drop their prices of US$248 million and US$358.3 million respectively to match the winning bid of US$184 million. However, the procurement board then cancelled all three tenders and has yet to offer an explanation.