The Zambian government has finally awarded digital migration contract for phases two and three to China's Star Software Technologies at a cost of $273 million. The process, however, has been met with controversy and authorities have also conceded that a lack of funds has stifled plans to begin with implementation.

Star Software Technologies helped Zambia to partially migrate to digital broadcasting in January this year ahead of the June deadline set by the International Telecommunications Union (ITU).

Zambia paid Star Software Technologies $9.6 million for the first phase of the project which resulted in digital broadcasting services to Lusaka and towns along the line of rail.

The rest of the country will be covered in the second and third phases of the project, according to authorities.

Godfrey Malama, Permanent Secretary in the Ministry of Information and Broadcasting Services, informed Star Software Technologies of the government's decision to award the company the contract.

"The Ministry has duly accepted your tender to supply Zambia's digital terrestrial television broadcasting system," Malama said.

The tender has been the subject of controversy because it was issued without being subjected to the bidding process, as required under the country's relevant tender laws.

However, Malama said the government is allowed to single source, particularly when the project is urgent and when it is satisfied with the track-record and performance of the contractor.

The Zambia Public Procurement Authority (ZPPA) has refused to comment on the matter.

The awarding of the tender to the company does end months of speculation over which company would be selected to fulfil the second and third phases of the project.

Despite this latest development, the Southern African country remains behind schedule as phase two was supposed to run up to January 2015, in preparation for the start of phase three.

The country has also not announced when the project would start.

A source at the Ministry of Information and Broadcasting Service told ITWeb Africa that although the Zambian government has awarded the tender, it currently does not have budget available to commence with implementation.

He said the government is seeking financial assistance from China.