Ministry clarifies on Magogoni ferry tender
The Mombasa-based African Marine and General Engineering Company Limited (AMGECO) won the tender for major repairs to the MV Magogoni ferry because it presented the lowest bid, the government has said.
According to a statement released by the Ministry of Works and Transport on Tuesday, the international tendering procedure for the major rehabilitation of the ferry was conducted through the Tanzanian National e-Procurement System (TANePS), where two companies submitted their bids to carry out the work.
The rehabilitation work will cost a total of 7.5bn/-, the Minister for Works and Transport said recently, when he witnessed the signing of contract between the Tanzania Electrical, Mechanical and Electronics Services Agency (TEMESA) and AMGECO for the rehabilitation of MV Magogoni ferry.
And, the clarification comes in response to complaints from the public that the government was spending too much money by engaging a foreign firm for the work, instead of buying a new ferry for the same amount, and that a local company should have been awarded the tender.
The statement said AMGECO of Mombasa had presented a lowest bid to do the work at a cost of 7.5bn/- and Songoro Marine Transport LTD of Mwanza Tanzania had tendered 10.9bn/- for the work.
“The difference between two is approximately 3.3bn/-,” the statement reads in part.
The government gave the job of major rehabilitation to the first bidder, who was AMGECO. The contract for the work is for 180 days equal to six months.
The MV Magogoni ferry which is undergoing major rehabilitation has the capacity to carry 500 tonnes, (2,000 passengers and 60 vehicles). The German-built vessel was purchased in 2008 for 8bn/- and will now be repaired for 7.5bn/-.
It further states that the ferry has been in use for almost 14 years without requiring significant repairs, which justifies the claim that the cost of maintenance is excessive.
“It is currently undergoing a major rehabilitation. Five new engines will be bought during this exercise (four engines will be tied to the ferry and one engine in reserve). New marine steel plates, a new gearbox, as well as new electrical and electronic equipment, will also be procured and installed, “the Ministry said in a statement.
After the rehabilitation is done, the ferry will be able to provide service for another 14 years or more, reads part of the statement released by the ministry.
Previously, such tenders were only advertised for local contractors, according to the ministry. In many cases, Songoro Marine Transport LTD was the contractor who got them; bidding competition for local contractors only resulted in a lack of value for money.
The government saw value for money by lowering the cost of repair by approximately 3.394bn/- after holding an international bidding competition.
Regarding the money that AMGECO will pocket, the ministry said that more than 75 per cent of the repair cost goes to buying equipment for rehabilitation and spare parts from Germany, Dubai, India and the UK.
Therefore, most of the funds of the tender will be used to make purchases of the equipment from the respective countries. In addition, the money to be paid AMGECO is less than the money that would be paid to the local bidder Songoro Marine Transport LTD.
