Local petrol station owners are rubbing their hands in anticipation of a business windfall when government starts fueling its fleet at private petrol stations.
Works and Transport Minister, Lesego Motsumi, told Parliament this week that last August, her ministry initiated a study to examine the feasibility of outsourcing CTO fuel operations to the private sector in order to improve service delivery. The aim of the exercise was to engage a consultant to carry out a feasibility study for the outsourcing of CTO fuel operations and identify the most cost effective and efficient option, which, among others, will include fuelling government vehicles at private fuelling stations.
The draft terms of reference for the study were developed and approved by PPADB in December 2006. The invitations to tender for the study were published in the Government Gazette with a closing date of 07 February 2007. The evaluation of the bids received was submitted to the PPADB on May 24, 2007 for consideration.
The minister told parliament that the bidders recommended were not approved by PPADB as they were considered non compliant to the requirements of the tender.
“Therefore, the tender was cancelled and had to be retendered. This cancellation has resulted in a delay of about four months in completing the study,” she said.
Following cancellation of the tender, CTO, in consultation with PPADB, finalized the received invitation to tender documents so as to invite new bids. The minister said the invitation to tender has now been approved by PPADB and it will be issued to bidders by the first week of August. The study is expected to be completed by December.