Concerns Raised Over Chinese Firm Sinohydro's Prequalification for Mauritius Dam Project

The prequalification of Chinese company Sinohydro for the Rivière-des-Anguilles Dam project in Mauritius has raised concerns, particularly among officials at the Ministry of Energy. Sinohydro, which has secured numerous government contracts in Mauritius, previously failed to deliver on a sanitation project for the Wastewater Management Authority (WMA), leading to the termination of its contract in the Pailles-Guibbies area due to significant delays.

Despite warnings from authorities about Sinohydro's "abnormally low" bid, the company was still awarded the WMA contract, drawing severe criticism from the parliamentary opposition. The Rivière-des-Anguilles Dam project, estimated to cost Rs 6.2 billion, is being financed with a loan from the Arab Bank for Economic Development in Africa through the Saudi Fund for Development.

Why this matters: The controversy surrounding Sinohydro's involvement in the dam project raises questions about the due diligence and oversight in awarding major infrastructure contracts in Mauritius. The project's successful completion is critical for the country's water management and economic development, making the selection of a reliable contractor a matter of national importance.

The Mauritian government is required to ensure the project is executed diligently and efficiently, with strict conditions imposed by the lending institution. These include the establishment of a Project Implementation Unit (PIU) to oversee the construction. In addition to Sinohydro, several other Chinese firms and the Mauritian company Sotravic Ltée have also been prequalified for the project.

The Rivière-des-Anguilles Dam project has faced several setbacks and delays since its announcement in 2010. Ministry of Energy officials believe Sinohydro should have been excluded from participating in government projects due to its previous failure, which led to financial and environmental concerns. As one official stated, "Sinohydro's track record in Mauritius raises serious doubts about their ability to handle a project of this magnitude and importance."

Key Takeaways

• Chinese firm Sinohydro prequalified for Rivière-des-Anguilles Dam project in Mauritius.
• Sinohydro previously failed to deliver on a sanitation project, leading to contract termination.
• Concerns raised about Sinohydro's "abnormally low" bid and ability to handle the dam project.
• Project financed by Arab Bank and Saudi Fund, with strict conditions on contractor selection.
• Ministry officials believe Sinohydro should have been excluded due to past failures.