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REVEALED:Why local construction companies lost to Chinese company in Eswatini Water and Agricultural and Development Enterprise(EWADE) R150million Mpakeni Dam tender?.

Sunday, 28th September, 2025

MBABANE:An investigation into the R154.8million Mkhondvo-Ngwavuma Water Augmentation Programme(MNWAP) has uncovered how local construction companies who were eyeing the Mpakeni Dam Seconday Distribution System tender lost to ZTCS, a Joint Venture involving a Chinese company-Zhengtai Group and Cherry Splash(Pty) Ltd.

The Times Sunday recently reported and questioned the decision seeking to award the MNWAP Phase 1B Lot 2 and Lot 3 contracts to the Chinese consortium and,the report further accused the Eswatini Water and Agricultural Development Enterprise(EWADE) of overlooking local firms in favour of foreign bidders. 

But information gathered by this Swaziland News suggests that, a review of the official bid evaluation report tells a different story, various construction companies failed to meet the tender requirements while committing simple tendering mistakes.

It has been disclosed that, six(6) companies submitted bids for the project funded by the OPEC Fund for International Development(OFID) and overseen by EWADE.

These companies include Irrigation for Africa(Afri Civils)-Eswatini Murray & Dickson, a South Africa company, ZTCS Joint Venture from China, Stefanutti Stocks Construction-Swaziland, Zibandlela Trading and Quench Management both from the neighboring South Africa.

But the evaluation process of the tender was conducted in accordance with the African Development Bank’s (AfDB) strict international procurement rules, starting with a compliance checklist.

“It was at this initial stage that several bidders, including local firms, were disqualified for failing to meet basic requirements such as submitting the correct forms or providing mandatory bid security. One local bidder, despite being qualified and financially capable, failed to submit a compliant Letter of Bid as required. Instead, they used an unofficial form and quoted abnormally low rates-including zero Emalangeni for key items and no profit on Day Works. When asked for clarification, the company admitted to mistakes but could not convince evaluators that the omissions were not a risk. Their bid was rejected accordingly. Another local firm proposed an unrealistic 14-month completion schedule(instead of the required 36 months) and omitted essential activities like pipeline testing and training. While some issues could have been resolved before contract signing, these oversights undermined confidence in their bid.Even some foreign bidders made similar errors. One failed to submit the required bid security, while another submitted an incorrect form. Both were disqualified at the compliance stage”, said a source very close to the tendering process.

Reached for comments by this Swaziland News, EWADE Chief Executive Officer(CEO) Samson Sithole confirmed that, some construction companies were disqualified for allegedly failing to meet the tender requirements.

“Our duty is to deliver value for money and ensure climate-resilient infrastructure for emaSwati. The evaluation was conducted fairly, transparently, and with full accountability,” said the Chief Executive Officer.

Responding to this publication on Sunday evening, Johannes Manikela of the Business Federation of Eswatini(BFE) said, such tender requirements must be reviewed to accommodate local construction companies adding that in the event eSwatini companies fail, they must be given an opportunity to sub-contract.

“It’s true that some local construction companies cannot fully compete in such international multimillion tenders but as a country, we must find possible ways to ensure that, local companies benefit. I will make an example; if the tender has been won by an international company, local companies must benefit through sub-contracts even though it’s risky because many sub-contracting companies have shutdown after the companies that won the tender failed to pay for services. In most instances, you find that the company awarded the tender has been paid by the client but intentionally delay to pay the subcontractors resulting to banks attaching their properties or working equipment”, said the Business Federation of Eswatini Head of Retail.

REVEALED:Why local construction companies lost to Chinese company in Eswatini Water and Agricultural and Development Enterprise(EWADE) R150million Mpakeni Dam tender?.
The under-construction Mpakeni Dam(pic:supplied).