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Korea Republic of : DAEWOO bags $161 MILLION contract to build historic bridge over the Zambezi River

August 30, 2014

Daewoo Engineering & Construction has been awarded a contract worth $161 million for the construction of the first-ever bridge over the Zambezi River connecting Zambia and Botswana.

The project would bring economic advantages to both countries and that the idea had been cherished by them for 40 years, said the company.

However, the contract has gone through a controversy following a major funder, Japan International Cooperation Agency (JICA), withdrew its loan for the project over a reported tender valuation dispute and another of the bidders, China Major Engineering, has wrote to the local authorities asking why its bid, said to be the lowest, was rejected.

JICA in October 2012 stated that it would lend Botswana$84.2m and Zambia$27.7m to build the bridge. It would help the two landlocked countries remove transport bottlenecks and develop their economies.

JICA was joined by the African Development Bank (AfDB) in promising funds, and both the governments of Zambia and Botswana would contribute.?But earlier this month JICA surprised all parties by withdrawing from the scheme.

For the project, Daewoo will hold a groundbreaking ceremony in next month with construction set for completion in 4-year.

Daewoo was its first project in the region in 23 years, and that it hoped it would be a stepping stone for expansion in South Africa and neighbouring countries, said the company.

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Source: TendersInfo (India)

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