Tanzania's MV Magogoni built at a cost of Sh8 billion, to be repaired at Sh 7.5 billion

Tanzania's MV Magogoni ferry, which ferries passengers in Dar es Salaam at the Kigamboni waterway, is set for major repairs in Mombasa, Kenya. 

The German-built vessel which was manufactured in 2008 at a cost of Sh8 billion will now be repaired in Kenya for Sh7.5 billion. 

The $3.2 million (about Sh7.5 billion) tender for major rehabilitation of the Mv Magogoni ferry came under scrutiny in 2022 and was eventually nullified by the Public Procurement Appeals Authority (PPAA).

The authority ordered a fresh evaluation of tenders after discovering that the Tanzania Electrical, Mechanical, and Electronics Services Agency (Temesa) had flawed rules during the evaluation of bidders.

The decision came following an appeal by a Tanzanian shipbuilding company, Songoro Marine, based in Mwanza, that had been disqualified from the lucrative deal over alleged failure to meet requirements set in the tender document.

The ferry's manager, Eng. Lukombe King'ombe, addressed the concerns about what some say is an exorbitant fee for repairs. "The value of Sh8 billion in 2008 is not the same today," he explained. 

He said that the ferry is supposed to last for 30 years, and it has been 15 years since its manufacture date. "We cannot abandon it and buy a new one," he said.

Temesa floated the disputed tender on April 13, 2022 through the Tanzania National e-Procurement System (TANePS) where two tenderers including that of Songoro Marines were received by May 19 this year’s deadline.

The tenders were evaluated with African Marine recommended for the award of the tender by the evaluation committee.

Temesa gave reasons for disqualification of the appellant as including failure to submit Ship Builder Certificate as required under instruction to tenderers.

The second reason for disqualification was that the company’s power of attorney was not notarised as per requirements of instructions to tenderers.

Songoro disputed the disqualification as unfair and unsuccessful applied to Temesa for administrative review of the decision. Left with no option, the company rushed to PPAA to challenge disqualification.

Songoro’s case

Counsel for the company, Mr Gracian Mali submitted at the hearing of the appeal that Temesa erred in law and fact for disqualifying the appellant on the ground of failure to submit Ship Builder Certificate.

“According to Clause 27.6 (vi) of the ITT, tenderers were not required to submit Ship Builder Certificates,” the lawyer contended.

He argued that the requirement did not specify particularly where the certificates were to be obtained or what was the issuing authority.

Said the counsel: “In Tanzania, the certificate of ship building is issued by the Contractors’ Registration Board (CRB). In compliance of Clause 26.7 (vi) of the ITT, the appellant submitted certificate issued by CRB which certifies it has been registered as specialist contract, class one, local category in the field of marine structures.

The counsel referred the Appeals Authority to an article by Prof. Yucheng Li and Linpu Li titled “Marine Structures and Materials”, Oceanography Journal, Vol. III, Dalian University of Technology, China.

In the article, the term marine structures are defined as “…engineering facilities constructed and installed in coastal zones or open ocean for exploitation of marine resources and the maintenance of its continuous operations,”

According to the article, marine engineering structurers can be divided into three types; fixed, movable (floating structures) and complimentary structures.

It was Mr Mali’s proposition that MV Magogoni Ferry falls under the category of movable structures.

Based on the definition of the terms “marine structurers” and “Ship” the appellant contended that CRB certificate suffices to requirement of Clause 27. 6 (vi) of the ITT.