South African firm wants to partner Indian company again

Monday, 09 December 2002, 20:30 IST
Printer Print Email Email
JOHANNESBERG: The chairman of a South African company has left here on an urgent mission to Kolkata to convince an Indian firm to be part of a new bid for a lucrative forestry privatisation deal. Paharpur Cooling Towers of India did not win earlier after the government here cancelled a controversial deal. Solly Tucker of Yorkcor now wants Paharpur to be a partner again in the bidding process that the South African government reopened at the weekend for management of state forestry plantations in the provinces of Limpopo and Mpumalanga. The original bid process was suspended in September when irregularities were uncovered at the preferred bidder, Zama Resources Corporation. The chief executive of Zama, Mcebisi Mlonzi, was suspended after claims that he had been involved in corruption during the bidding process. Paharpur, as the second preferred bidder, had then hoped to secure the 335 million rand contract, but the government decided instead to reopen bidding and allow both Zama and Paharpur to put in new bids if they wished to do so. Paharpur indicated at the time that it was unlikely to bid again in view of the huge cost involved in terms of funds and resources. Tucker told IANS before his departure to Kolkata that Yorkcor would participate in the new bid process as the local partner in a consortium. He said he would negotiate with top executives at Paharpur to be part of this process, but that certain legal issues around the first bid process had to be cleared up. "We (at Yorkcor) think that the strategies which we have put together have a very good chance of success," Tucker said. "But first we will have to speak to Paharpur, who quite rightly were disappointed with the outcome of the first bid, because they were the reserve bidder and they expected their bid to kick in when the preferred bidder failed in its efforts." Tucker said Paharpur's comments about not wanting to participate again were "very understandable". "But the fact of the matter is they were very close to clinching it. It's an extremely valuable asset unmatched internationally. I think that one can contain the kind of hazard and risks that they had to face the first time round." Tucker said he was confident of winning over the Paharpur executives with the package he would be presenting to them. "Paharpur was our first choice because they were so well-prepared and their preparation was so professional. "While they were in South Africa they demonstrated a very high degree of professionalism and integrity which means that public opinion is already in their favour." Zama Resources has indicated that it will also participate in the new bid, which will close in January.
Source: IANS
siliconindia