UK firm wins tender to value ZESCO

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ZESCO Muzuma substation being upgraded to KV 330 (from KV 220) in order to be connected to the national grid as soon as the Maamba coal plant station is commissioned
ZESCO Muzuma substation being upgraded to KV 330 (from KV 220) in order to be connected to the national grid as soon as the Maamba coal plant station is commissioned

State power utility ZESCO has appointed Multiconsult UK to identify and value their generation, transmission and distribution assets.

The engineering consultancy said that the assignment is planned to take nine months and will be undertaken by a large team comprising staff from the UK, Norway, South Africa and Zambia.

The team includes accounting, valuation and insurance specialists.

According to the engineering firm, “the project team will undertake identification, condition assessment, determination of present book value and residual lifetime assessment of all fixed power system assets in accordance with national legislation and international standards.

“The scope will additionally include insurance risk assessments and the creation of a new fixed asset register with interfaces to ZESCO’s accounting and equipment maintenance systems.”

“This appointment marks the continuation of an important working relationship with ZESCO,” says Knut Norén, Managing Director of Multiconsult UK.

Norén added: “Our hydropower engineers have worked with ZESCO since the 1950’s, when they were asked to design several hydropower projects in northern Zambia.

“Since then we have studied rehabilitation and upgrading options and are still providing design review and site supervision services for these projects.”

ZESCO is wholly owned by the Government of Zambia and has four major hydroelectric power stations, five small hydropower stations, nine diesel power stations, approximately 5,774 km of transmission lines, 81 high voltage sub stations and a distribution system serving the entire country.

To support accurate business planning and corporate financing, ZESCO revaluates the value of their assets on a regular basis.

19 COMMENTS

  1. +6
    -30
    vote

    “The team includes accounting, valuation and insurance specialists”……can’t this be done by the Auditor General’s office or the Ministry of Finance to cut on costs of engaging a private overseas firm?

    • +1
      0
      vote

      The answer is NO, NO, NO, NO and NO!!! Because the AG and MoF don’t have the skills and expertise to value such a huge organisation. Also the AG and MoF could be easily manipulated by the PF minions like Kampyongo and Edgar Corruption Lungu!

    • +25
      -1
      vote

      Zambians always look for the negative in everything that appears positive. If the Auditor General’s office was given this job, I am very sure those opposing giving this tender to the UK firm were going to complain about the auditors at the Ministry of Finance and the Auditor General being compromised – especially if the auditor’s report on ZESCO turned out to be positive. Let us listen to wisdom in Einstein advice: “Stay away from negative people. They have a problem for every solution”.

    • +2
      0
      vote

      What is the purpose of this exercise?
      Zambians be careful by the time PF is out of office they will have sold the whole country.
      Like Kambwili said ni ba kabwalala aba!

    • vote

      They can abandon all other jobs. Govt is too big for them. Besides they don’t have certain specialities. they would still hire.

    • vote

      what do auditors know about electrical/ power engineering, substations and dams.

      Where in the world do auditors and accountants undertake condition surveys of dams and buildings. . Kupusa

  2. +5
    -8
    vote

    – PF sold ZCCM-IH to unknown shelf company
    – PF sold ZNBC to tu ma Choncho-lee
    – PF is now selling RATSA & toll-gates to Lamise Lebanese crooks
    – Next we’ll hear that ZESCO has been sold by styopet PF regime

  3. +6
    0
    vote

    Zambians always look for the negative in everything that appears positive. If the Auditor General’s office was given this job, I am very sure those opposing giving this tender to the UK firm were going to complain about the auditors at the Ministry of Finance and the Auditor General being compromised – especially if the auditor’s report on ZESCO turned out to be positive. Let us listen to wisdom in Einstein advice: “Stay away from negative people. They have a problem for every solution”.

  4. +9
    0
    vote

    @Ba Sebenza, don’t show your ignorance in public. This is a huge task that requires technocrats with full understanding of what is involved in power generation, transmission and distribution. Why do you think Consultants are there? You spend money in order to earn money. The only thing you know best is serving money. Let’s provide positive criticism to National issues.

  5. +3
    0
    vote

    The devil does not lie with who wins the tender really but in the amount quoted. I have just Googled the company. They seem to have a rather positive reputation in the energy sector though their turn over is just around £2.6m pa going by the 2015 audited accounts by Delloite. Bloomberg puts the quotation at 28m Norwegian kroner which is about $3.5m. Just hoping it’s a fair quote. With the current suspicions in the procurement sector I suggest to our journalists to do some searches about the other bidders before they publish such stories so that readers can make informed comparisons.

  6. +4
    -1
    vote

    @1 Ba Sebenza, re-read the article you will realize that the job is beyond the Auditor Generals capacity.

  7. +1
    -5
    vote

    To support accurate business planning and corporate financing, ZESCO revaluates the value of their assets on a regular basis. PLEASE DONT THINK ZAMBIANS ARE STYOPET , WE KNOW THAT U WANT TO PRIVATISE ZESCO HENCE WANT TO KNOW THE VALUE OF ALL THE MENTIONED DEPARTMENTS THAT WILL BE AUTONOMOUS. Was the tender advertised to evaluate zesco? at what project cost are u conducting this exercise ? I know the same company wanna buy zesco at a song price

  8. +1
    0
    vote

    Contracts like this gave HH the start-up capital
    You should publicize these jobs naise tinkaleko na ndrama. Mungo pasa chabe ma foreigners. Let’s share in our national cake. No Zambia yatu tonse

  9. +2
    0
    vote

    Haluza Hagain undervalued the mines and got rich through change. That is why they don’t want to take chances with local valuers! Foreigners, a few PF and MMD minions will be the winners after this exercise. Zambians sold their souls to the devil! Let the devil prey on Zambians for want of knowledge! We have failed to run our own affairs! It’s time to get re-colonized – to the Chinese this time. You better start learning Chinese language so that you appreciate how they are insulting you while you ignorantly smile thinking they are joking with you! Sobber up and see how your beloved leaders are reaping you off! Expect more taxes!

  10. vote

    He adde, “You cant say because the procedure was followed, a tender was issued when information was being shared that three, four companies are owned by the same people tendering for the same tender, then you say there was competition. The last bid, its the same person, the middle one its the same person, still the first bid its the same person, then you write that ‘procedures were followed’ procedure yabanyoko yebo (is is your mother’s procedure) charged Mr. Hichilema said.
    Interpretation 1: This sounds like GBM when his several “companies” won the bid to supply poles to ZESCO not too long ago when he was minister of defence.
    2. “Yabanyoko yebo” – under5 is really coming out in the open to show his pride about my tribal genesis. He is telling the “monkeys and rats” that its time…

  11. vote

    ..3. under5 cannot fight corruption when he is surrounded by corruption itself including a vice predident, and a host of MPs waiting to become rich like Kambwili and GBM.
    I have said it before, if the current government is corrupt, under5’s government would be far worse, and proudly tribalist too as you have seen a tip of the iceberg this week in the news at tribal ceremonies and press cobferences etc all starring chief tribalust under5. Fortunately he will never succeed, not by our votes, unless multiplying the votes in the homeland.

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