ZAMBIA National Building Society (ZNBS) board chairperson Joyce Simukoko says the awarding of the contract to re-develop Society House was done in a transparent manner.
Mrs Simukoko said during the ground-breaking ceremony of the project in Lusaka yesterday that there was nothing sinister about the bidding process.
She said as far back as 2003, ZNBS has been scouting locally and internationally for potential development and equity partners to finance the project.
Mrs Simukoko said most of the firms were not interested because of the financial position of ZNBS, which up to 2009, had a negative balance sheet and a negative regulatory capital position to the tune of K52 billion.
She said by the financial year ending 2011, regulatory capital was in excess of K30 billion.
In 2009, various potential investors, both local and international approached ZNBS to finance the refurbishing of Society House and Central Arcades.
An invitation to consortiums was issued and 11 bought the bidding document on August 11, 2010.
Mrs Simukoko said the request for proposal was open to consultants and contractors registered in Zambia who were required to tender as joint ventures or partnerships of consultants and building contractors.
Foreign consultants and contractors were eligible to participate on condition that they formed joint ventures with Zambian contractors.
On August 23, 2010, a pre-bid meeting was held where over 10 bidders were met to explain various elements of the request for proposal approved by the Zambia Public Procurement Authority (ZPPA).
Six bidders submitted their bids and by end of November 2010, a detailed evaluation involving independent evaluators was conducted, out of which a successful bidder, Zambezi Consortium, was selected as the preferred bidder on September 1, 2010.
And on January 11, 2011 a proposal for the National Pensions Scheme Authority (NAPSA) to consider financing the project based on the viability demonstrated in the business plan was presented.
NAPSA wrote back on April 28, 2011 to ZNBS confirming that it would finance the project
ZNBS and NAPSA engaged in contract negotiations which resulted in a mutually beneficial 20-year concession agreement.
[pullquote]She said contrary to reports in The Post that a Kenyan company had been awarded the contract, South African companies are the ones which have partnered with Zambians in the project.[/pullquote]
And ZNBS managing director Noriana Muneku said her institution will ensure that public assets are optimised and utilised in a way that increases welfare for the institution and for all stakeholders.
She said the selected execution model was carefully chosen to ensure that ZNBS does not divert its attention from its core business, including the provision of affordable mortgage finance.
“Thus, by executing this project, ZNBS aims to reinvigorate itself towards better delivery of its core mandate,” he said.
She said contrary to reports in The Post that a Kenyan company had been awarded the contract, South African companies are the ones which have partnered with Zambians in the project.
And NAPSA board chairman Dominic Mbangu said the authority is proud to associate itself with the project.
“Despite the lies which have been said about this project, we are proud of how it has turned out,” he said.
He said the authority followed procedure and discovered that it is worthwhile investing in the project.
Mr Mbangu also disclosed that NAPSA will collaborate re-development of building society properties.
“We will also have a manager to ensure that all the money invested in the project is recovered, and then we will hand over the building,” he said.
And Minister of Labour Austin Liato said allegations by The Post that President Banda forced NAPSA to invest in the re-development of ZNBS are misplaced and politically motivated to discredit the President.
Mr Liato also said allegations that NAPSA loaned money to ZNBS are misplaced because it will get back the money during the concession period, and then hand over the building to ZNBS.
He also said it was clear that allegations that Kenyan investors were awarded the contract are misplaced.