Glen Valley, Dikabeya privatisation goes to tender

MBONGENI MGUNI
Staff Writer | Friday June 14, 2013 00:00

The latest development comes after the Public Procurement and Asset Disposal Board (PPADB) recently approved the two farms' disposal via lease to investors. The ministry and the Public Enterprises Evaluation and Privatisation Agency (PEEPA) signed a privatisation MoU last year kicking off the exercise. According to Expression of Interest documents, the bidding process, which is open to both local and international investors, will be based on technical and financial ability, which will make up 60 percent of the scorecard.

The balance will be made up by bidders' demonstrating their commitment to training and mentoring farmers and extension staff as well as the quality of their proposed business plans.The two farms collectively measure 21 hectares and boast drip irrigation schemes, treated sewage and potable water connections as well as ablutions, electricity, roads and other structures such as greenhouses. According to the PEEPA, government decided to lease out the farms last year after realising that since their inception, the two had proved inefficient and costly to operate.'Government established the two farms to reduce dependence on neighbouring countries for food supplies, and whilst suitable technologies were identified and used, the Ministry of Agriculture was not satisfied with the two farms' output,' PEEPA officials said in contextualising the privatisation process.

'PEEPA undertook a feasibility study and recommended that the farms be privatised through a leasing agreement where government retains land ownership'. Available documents indicate that successful bidders will be required to pay for electricity usage, with those at Dikabeya able to tap water from Bonwakatlhako Dam, while those at Glen Valley can use a mixture of recycled water and potable supplies from the Water Utilities Corporation (WUC). The private investors will not be allowed to build permanent structures on the farms, as government will retain full ownership of both. Glen Valley Farm sits on 13-hectares of land on Gaborone's outskirts, with nine hectares used for olives, 0.5 hectares for butternuts and another 0.25 hectares for peppers and tomatoes. On the other hand, the eight-hectare Dikabeya is located 20 kilometres north of Palapye, with five hectares open field and one hectare for protected cultivation.