The Selebi Phikwe Economic Diversification Union (SPEDU), a government agency established to revive the mining town of Selebi Phikwe and its surrounding region, has cautioned the government about potential legal, financial, and reputational risks arising from the possible cancellation of the P300 million tender for the Mathathane-Platjan border post road project.
Chief Executive Officer Othata Batsetswe, in a letter to the Permanent Secretary (PS) in the Ministry of Trade and Entrepreneurship, Joel Ramaphoi, stated that SPEDU will not consider any bidder who did not participate in the tendering process for the award.
In the letter, seen by this publication, Batsetswe reminded the PS of the potential ramifications of awarding—or not awarding—the construction contract for the 30 km Mathathane-Platjan border post road.
SPEDU issued an open domestic bid for the project, which ran from August 2, 2024, to September 20, 2024, at 10:00 am. To qualify, bidders had to be registered with the Public Procurement Regulatory Authority under specific categories: “The Main Contractor; Code: 03 (Civil Engineering Works), Sub code: 01 Construction (Roads, Infrastructure, Airfields), Grade E, Sub code 04 (Surfacing), Grade E.” The tender permitted joint ventures with 100 percent citizen-owned companies.
SPEDU received 13 bids, and the evaluation and pre-adjudication processes were completed in November 2024. The tender is currently awaiting adjudication by the Accounting Officer.
The project, funded by the European Union at over P300 million, has faced delays amid ongoing discussions about canceling the tender in favour of insourcing the work to the Department of Roads, with assistance from the Botswana Defence Force (BDF).
In his letter, Batsetswe pointed out that, under section 63(2) of the Act, the Accounting Officer can only award the tender to a substantially compliant bidder.
“Further, the evaluation procedure explicitly stated in the bidding package shall form the basis of such an award in terms of section 64(1) of the Act,” he said.
He emphasised that no bidder or entity can be considered for an award unless they participated in the bidding process, met the evaluation criteria set in the Invitation to Tender (ITT), and fulfilled all eligibility requirements.
Batsetswe stressed that the fundamental principle is that the award must comply with the Act and regulations. Awarding the tender to a contractor who did not respond to the tender would violate both the evaluation process and the law.
“As stipulated under section 147(2) of the Act, a person who contravenes any provision of the Act commits an offence,” he explained, noting that such a contravention could expose the Accounting Officer and the company to legal, financial, and reputational risks.
He also raised questions about job creation and public perception if the award proceeds along the proposed alternate route, warning that a change of hands is not straightforward.
“There is heightened risk on the financial sponsor that is not being fully addressed; how does the new decision affect their procurement and governance standards, considering that litigation will certainly follow?” he asked.
Batsetswe added that, in the interest of promoting integrity and fairness in public procurement, the tender can only be awarded to one of the 13 bidders unless there are compelling reasons otherwise.
“In conclusion, SPEDU has no alternative but to make a decision that aligns with the adopted procurement process as backed by the provisions of the Act,” he said. “Consequently, a bidder or entity that did not participate in the process cannot be eligible for award.”
In a recent media statement, SPEDU assured stakeholders that any decision regarding the tender will strictly follow applicable laws and regulations.
SPEDU Manager of Corporate Communications, ShiellahMoribame-Moakofi, said the tender falls within the purview of the Accounting Officer under the Public Procurement Act and will be decided solely within the powers granted to that office.
