Economy

Zambia May Lose $2.2 Million to Trafigura

Zambia may start losing US$2.2 million per year by awarding Trafigura the tender to supply finished petroleum feedstock to the country for the next two years, according to sources familiar with the transaction.

The Zambian government is negotiating with Trafigura on the supply of 216,920,000 litres of diesel and 21,230,000 litres of unleaded petrol for the next two years.

According to sources close the transaction, Trafigura was fifth with weighted average price of US$1,314.84.

“One fails to understand how Trafigura, a company with weighted average price of US$1,314.84 million for diesel and petrol could be awarded this tender beating four cheaper companies which included companies that bid for as low as US$1,207.43,” the sources said. “If the negotiations with Trafigura culminate in a tender award, this will translate to a loss of US$2,240,596 in one year to the Zambian economy. And this loss falls squarely on Zambia Public Procurement Authority.”

Comments are closed.