ACC gives go-ahead for high-voltage cable project

Anti-Corruption Commission (ACC) has instructed Stelco to go ahead with the project to install high-voltage cables between Male' City and Hulhumale' with the construction of the China-Maldives Friendship Bridge.

Stelco reports the ACC has ruled the project does not involve corruption, and that both ACC and Ministry of Finance has instructed Stelco to go ahead with the project.

The Male'-Hulhumale' Power Interconnection Network Project was originally contracted to National Electric Engineering Co Limited (CNEEC) of China. The contract was terminated 17 days later and assigned to Stelco via Ministry of Finance.

The regulation on public finance states that a company with a State-majority can be contracted a public service project without tender.

Stelco subcontracted the project to Dongfang Electric Corporation (DEC) of China.

The case was investigated by ACC for possible corruption. Stelco was asked to share relevant paperwork on the project and Ministry of Finance ordered Stelco to temporarily suspend all work on the project in early December.

Managing Director of Stelco, Ahmed Zuhoor reported to "Sun" this Thursday that the tender board submitted the project for international tender twice. And that the same two companies applied twice.

He said Dongfang was selected as it submitted the best proposal out of the two companies.

"This bid was carried out based on contractor financing. We provided feedback after the tender board carried out its evaluation. Ministry of Finance sent a letter to Stelco asking the project be expedited," said Zuhoor.

"We took over this one-year-old project after international tender and numerous evaluations. There was no need for Stelco announce any additional tender after it was assigned to Stelco. Therefore, since the project was announced by Ministry of Finance and because of the delays in starting the project, our Board and management decided to go ahead with it as the tender was not cancelled."

Zuhoor said that Dongfang proposed to complete the project for USD 12 million less than CNEC, and that Dongfang offered to accept the money within a period of two more years than CNEC.

"Since currently works together with Stelco and has been assigned to work on the new powerhouse, and since Dongfang has the biggest role to play in installation of this cable, based on all these considerations, Stelco found it the most beneficial for both Stelco and the government to award the project to Dongfang," said Zuhoor.