The Sunday News
CONFUSION reigns supreme over the $60 million tender for the renovation of Basch Street Bus Terminus, with officials from the Bulawayo City Council (BCC) alleging that it had hit a brickwall after the company that won the tender, Terracotta Private Limited, vanished.
Officials from Terracotta have, however, hit back claiming everything was in place and also revealing that they would be in the city this week to complete contract negotiations.
The rehabilitation, which was initially meant to start in January this year, has experienced a number of false starts over the past nine months, with both the local authority and the contracted company reportedly not committing themselves to the commencement of the project.
The South African civil engineering firm won the tender ahead of two local companies. The upgrade of the terminus popularly known as Egodini, is expected to gobble close to $60 million.
However, in the latest development, council sources have revealed that the deal risked collapsing, after Terracotta disappeared and continuous efforts to contact them reportedly bore no fruit.
“They just disappeared and I feel council will be left with no choice but to rescind the resolution to award them the tender and either re-tender or give the second best bidder but it is now tricky because the initial projection of $60 million is no longer viable,” said a council source.
The city’s mayor, Councillor Martin Moyo, confirmed that the South African-based company had since become elusive after being awarded the tender.
“This project should have begun in January but for some reason the company that won the tender has been dilly-dallying. Yes they might be saying that they are committed to the whole project but I believe in any business transaction there should be a time limit for waiting.
“That is a key project to our city because when the project begins it will in itself create a number of economic opportunities, like job creation and even materials that will be supplied locally. That is why we are worried when this company is not coming clean on what really is happening,” said Clr Moyo.
He said as a council they had lost patience with the delays that were being caused by Terracotta, which he said were clearly unprofessional.
“Initially it was an issue of the contracts but now we have reached a point where we are no longer comfortable with these delays. We cannot wait forever,” said the mayor.
However, Sunday News managed to track down one of the Terracotta officials, Mr Otis Tshabangu, from their base in South Africa, who revealed that as far as the company was concerned, everything was in place for the project to commence.
“It is not correct that we vanished because as far as we are concerned we have been in continuous engagement with the council and as it stands we will be coming to Bulawayo to meet with the council officials to finalise the contract negotiations.
“When we complete this phase and the contract is finally signed, nothing will stop this project taking off,” Mr Tshabangu said.
Questioned on the delays in the signing of the contract with the local authority, the official claimed it was due to “a few contractual hitches”.
“I am positive that when we come to the city there won’t be nothing much to stand between us commencing the project and at this stage I can confirm that as Terracotta we are 100 percent committed to this project,” he said.
The initial tender for the re-development of the terminus was advertised and closed on 25 June 2012. The compulsory tender briefing was held on 5 July 2012 with 14 companies attending. The pre-adjudication interdepartmental meeting was held on 11 September to consider the submissions, where Terracotta was awarded the tender.
The company was also awarded a 99-year lease to the terminus.
Past projects that have been done by the company include Edendale Shopping Mall in Pietermaritzburg, Kwazulu Natal; Chris Hani Crossing Taxi facility in Gauteng and the Tsakane Mall taxi rank again in Gauteng.
According to the company’s plans, earnest renovations were expected to begin in six months after the signing of the contract.
“Completion of tenant letting (will be done) in four months, completion of working drawing and development rights (will be) in place in six months and earthworks begin in six months.
“Beneficial occupation of main tenants (is expected) in 18 months, beneficial occupation of remaining tenants in 19 months while official opening and commencement of trading after 20 months,” reads part of a brief that the company sent to the local authority.
