Debswana Pension Fund, Cresta Hotel construction marred in controversy
But sponsors DPF unshaken about procedures Hotel construction in Jwaneng will cost over P68 million
Debswana Pension Fund ( DPF) multimillion Pula investment in the construction of a boutique hotel that forms the extension of Cresta Hotel in Jwaneng is already marred in controversy after the initial winning bidding contractor was allegedly disqualified.
DPF is building a 4- Star 50 room facility targeting the high- income segment of the visitor market whose construction is expected to last for 14 months from the date when the site was handed to the Contractor this Tuesday.
In accordance with the agreement signed, Cresta will be tenant operator. The boutique hotel will be built at a cost of P68, 255, 000.
Botswana Guardian has the names of all the 10 contractors who were invited to tender for the mouth- watering project. The lowest quotation offered by the companies was slightly over P55 million, with the highest being slightly over P63 million.
The reason for disqualifying the contractor whose name is known to
Botswana Guardian by the Debswana DPF Board of Trustees is a closelyguarded secret. Even those who feel aggrieved are unable to shed any clue.
However, what is not a secret is that bidding invitation was strictly done through a selective process invitation with prequalified bidders of the Tender document marked ML- 928 DEBSWANA PENSION FUND HOTEL EXTENSION, PLOT 5483 JWANENG, BOTSWANA.
The construction site was handed over to the preferred contractor Estate Construction on Tuesday where the Acting Minister of Environment, Natural Resources, Conservation and Tourism,
Setlhabelo Modukanele officiated at the groundbreaking ceremony.
Modukenele said the project is a key milestone in the partnership between Debswana Pension Fund and Cresta Marakanelo Limited.
“I am also informed that the project will create jobs both during construction and during operation. This is a commendable effort by Debswana Pension Fund and Cresta as job creation is a priority area of government”.
He said investing in tourist accommodation can provide an array of significant benefits in local areas. In particular, the presence of accommodation in tourist destinations provides a potentially valuable source of business for local suppliers to the tourism or related sectors, while also contributing to the public funding base.
However, importantly, it also increases the opportunity to attract tourists to stay in a destination, which ultimately leads to further tourist expenditure and additional business for other businesses in the local area.
He said the partnership between DPF and Cresta will significantly contribute to the growth and development of the tourism sector in Botswana.
“The development of this boutique hotel will not only create jobs in the locality but also upon completion will offer a new product into the Jwaneng market and its surroundings,” he said, further adding that this effort by Debswana Pension Fund is in line with the Revised Tourism Policy whose aim is to position Botswana as a tourist destination of choice by the year 2030 and beyond by elevating the recognition of tourism as a priority growth area and aggressively developing and promoting the sector.
The role of the private
sector in advancing the development and growth of this sector is indeed critical. Tourism today contributes eight percent to the national economy and it is our interest to see this grow beyond 2019 levels.
But with the fanfare having been completed, it remains to be seen if those who feel aggrieved will take any action or will let bygones be bygones. Reports reaching Botswana Guardian indicate that the awarding of the tender might have triggered a legal battle with companies that feel aggrieved.
In an interview with Botswana Guardian, Chief Executive Officer of Debswana Pension Fund, Gosego January set the record straight, confirming the process they followed to appoint the contractor for the development of the proposed boutique hotel.
January said following approval of the project plans, drawings and scope by both Client ( DPF) and the operator ( Cresta Hotels), the next stage was to secure a contractor for construction of the building itself.
As is industry practice, this process was overseen by the appointed project quantity surveyor. A selective tender process was followed given the magnitude of the project. “This was to ensure that only companies with the right experience and capacity would submit the tenders”.
She revealed that a list of companies - with operations in Botswana- was then compiled through input from all parties, the Client, the Development Managers ( Khumo Properties) and the Quantity surveyors. The list comprised 10 companies with proven experience in Botswana.
“In adjudicating the submitted tenders, a combination of factors was considered, including price, citizen economic empowerment and particularly experience in construction of hotel and leisure buildings”.
Estate Construction was just at the tail end of constructing a hotel in the Gaborone Central Business District.
“This was seen as a great advantage for the proposed Jwaneng project as they would still have contacts for sourcing hotel materials and other items to ensure there were no delays in delivering this project to the Client and the tenant ( operator)”.