Infrastructure Brief

News and opinion on public works procurement

Government of Uganda Raising $117 Million for Construction of Oil Roads

By Kenneth Mwangi

The government of Uganda is seeking US $117m loan from China for construction of oil roads. Uganda Media Centre communications and media relations manager Denis Katungi, announced the report and said the Cabinet agreed to borrow the funds.

“The Government will borrow the money from the Industrial and Commercial Bank of China to finance the construction of Masindi-Biiso, Kabaale-Kiziranfumbi and Hohwa-Nyairongo-Kyarusesa-Butoole roads,” said Denis Katungi.

According to Mr. Denis, upgrading and constructing the national oil roads will facilitate the efficient development of the strategic national oil resources. It will also add to the network of road infrastructure required for movement of construction materials, workers and consumables from other parts of the country to the oil region.

Uganda has a target of completing a large section of its “oil roads” across the region. The set target of 2021 is a year behind schedule, and officials are citing funding challenges.
According to a 2016 Cabinet directive to the Uganda National Roads Authority (Unra), the 12 critical oil roads, about 700km in total, were supposed to be completed by 2020 to facilitate the production of oil in 2023.

Last year, the government signed a contract with China Railway Seventh Group to design and construct a 97km road connecting Masindi-Biso, Kabaale-Kiziranfumbi and Hohwa-Nyairongo-Kyarushesha-Butoole.

Minister of State for Planning David Bahati also presented to Parliament a loan request of US $456.37m from China Exim Bank to fund the upgrade and construction of national oil roads. 550km of the roads for which funding has already been secured will be completed by 2021.

Gambia to modernize Banjul International Airport

By Kevin Davids

Gambia is set to receive $12 million from the Saudi Fund for Development (SFD) to upgrade and modernize the Banjul International Airport.

President Adama Barrow expressed gratitude and appreciation to the King and the Crown Prince of the Saudi Kingdom for their continued support to his government and the people of The Gambia.

AFC to invest $63M in Djibouti wind farm

By Kevin Davids

Africa Finance Corporation (AFC) is investing $63 million to build and operate a 60 megawatt (MW) wind farm in Djibouti, the Lagos-based development financier said on Monday.

Established in 2007 by West African states such as Nigeria and Ghana to invest in infrastructure projects across the continent, AFC has a balance sheet of about $5 billion.

It is partnering with Great Horn Investment Holdings, Climate Fund Managers and Dutch development bank FMO in the project, which is located in the Ghoubet area near Lake Assal.

Operations at the project, which already has a 25-year power purchase agreement with power distributor Électricité de Djibouti, are scheduled to start in 2021.

The Horn of African nation’s power sector faces significant challenges, AFC said in a statement, with less than 100 MW reliably available for a population of close to a million people.

“Electricity demand is also expected to considerably increase due to various large-scale infrastructure projects including ports, free-trade zones and railways that the Government of Djibouti has undertaken,” it said.

Backing for the project is all sponsor equity financing, AFC said, enabling construction to begin within two years, rather than the usual 3-5 years. It also has some government and third-party guarantees.

Kenya’s Ministry of Interior scrutinized for improper tender processes

By Kenneth Mwangi

Kenya’s Ministry of Interior is under scrutiny for awarding tenders without appropriately following due process during the 2017/2018 financial year.

An audit report revealed discrepancies in the purchase of three helicopters in a Sh4.9 billion contract awarded to a foreign firm.  

HELICOPTERS

The helicopters for the Police Airwing were initially tendered at Sh4 billion (Euros 31,941,200), but the figure was later reviewed upwards to Sh4.9 billion (Euros 31,123,357).

Appearing before National Assembly Public Accounts Committee (PAC) on Tuesday, Interior Principal Secretary Karanja Kibicho said that the variation was as a result of errors during the tendering process.

Mr Kibicho said the over Sh900 million additional spending was due to extra specifications that were not initially provided. He said that the features were important for the safety of the aircraft.

“Even though the initial figure went up, taxpayers got value for money after additional features were added to the helicopter,” said Dr Kibicho.

BID DOCUMENTS

Apart from the amount variation, former Auditor-General Edward Ouko, in his report, stated that only one bidder was invited and issued with bid documents on March 29, 2017.

The bidder was asked to purchase three new helicopters namely; AW139 LE, AW139 VIP, and AW119 KX.

“No evidence was provided to show that technical input in the preparation of the tender documents. As a result, additional essential standard avionics helicopter parts required to be issued to form the basis of tender preparation and subsequent negotiations were not included in the original tender documents contrary to Section 104 (a) of the Public Procurement and Asset Disposal Act, 2015,” Mr Ouko noted.

Further details revealed that only two helicopters of registration number 5Y-DIG and 5Y-PEU were certified by the manufacturer and insured as per the Civil Aviation Insurance Regulations.

TWO VOUCHERS

Mr Ouko was able to get two vouchers that were on June 30, 2018, paid to another firm for the supply of three new turbine engines for helicopters.

One of the vouchers of number 196- Sh76 million was additionally paid to the firm for the difference in exchange rates.

In yet another tender exposed by Mr Ouko, the National Police Service procured under classified general purpose machine guns and AK-47 rifles from a foreign firm for Sh27 million.

However, it emerged that the company awarded the tender did not provide a certificate of incorporation and a weaponry manufacture registration/ authorisation.

Mr Ouko also revealed that the firm did not issue responsive to the rate of fire, maximum effective range and provision of accessories during the technical evaluation stage.

DISQUALIFICATION

“Failure to meet all the requirements by the bidder should have led to automatic disqualification. However, the tender was awarded to the bidder contrary to Section 80 (1) and (2) of the Public Procurement and Asset Disposal Act, 2015,” noted Mr Ouko.

He added that a local firm was awarded the tender for grilled masonry perimeter fencing including erecting canopies at the Kenya Police headquarters and Vigilance House Annex in Nairobi.

The firm issued an expired certificate from the National Construction Authority (NCA) which was contrary to section 3.3 of the tender documents that asked bidders to have a valid registration with NCA.

Besides, the firm never provided audited financial reports for the years 2015 and 2016 but only issued an audited report for the financial year 2012.

ANNUAL LICENCE FEE

The report also revealed that out of the 280 petrol stations that were required to pay fuel storage tanks annual licence fee of Sh4,000 per station, only 76 of them did so in the financial year 2017/2018.

This led to a loss of Sh816,000. The audit on petrol stations also put the Nairobi County Commissioner on the spot as it revealed that a total of 25 operational petrol stations were not registered and hence denied the government Sh100,000 in revenue.

The Interior Ministry explained that provisions of Section 14(5) of the Petroleum Act, 1947 was the basis for collecting the revenue until May 16, 2017- when the department realised that there was no legislation governing the revenue collection.

This was faulted by Mr Ouko who said that the department continued collecting annual licence fees from the petrol stations even after May 16, 2017.

SH674 MILLION

A total of Sh674 million was collected in respect of Sh674 million during the financial year which ended on June 30, 2018.

However, an audit revealed that the DCI department collected that Sh713 million from the collection of Certificates of Good Conduct which led to the unreconciled difference of Sh39 million.

A further review of documents issued by the DCI revealed that out of the revenue amounting to Sh69 million that was collected by Postal Corporation of Kenya at Huduma centers- only Sh25 million was remitted to Central Bank of Kenya. This means that a total of Sh44 million was not banked.

The Interior Department explained that the Sh69 million that was collected at the Huduma centres on behalf of DCI comprised Sh51 million and Sh18 million that was remitted to Central Bank of Kenya during the 2017/2018 and 2016/2017 financial years.

E-CITIZEN SERVICES

However, it never handed any document to back up the explanation as required by law.

For the E-Citizen Services, a comparison of the revenue amounts in the revenue statements with E-citizen collections/remittances during the 2017/2018 financial year revealed unreconciled differences amounting to Sh.3 billion. It also brought to the limelight the challenges that Internally Displaced Persons in Turkana went through.

Sh14 million was paid and was made for the construction of IDP houses in the financial year that ended June 30, 2018- but the department never issued any supporting documents showing on how the money was used.

GRANTS

In the 2017/2018 financial year, there were grants to Internally Displaced Persons under the cash payments program amounting to Sh2 billion.

A close audit revealed that Sh4.6 million was paid to IDPs who did not have national Identity Cards- which made it hard to determine that those who received the pay were Kenyans.

It also emerged that Sh17 million was paid to IDPs with duplicate names and ID card numbers.

Mr Ouko further did an audit with the National Registration Bureau database which revealed that for every duplicate name- only one name matched with the ID card number that was provided while the rest of the ID numbers did not.

It also emerged that a total of Sh250,000 that was made to IDP’s whose ID numbers never matched the database that was retrieved from the National Registration Bureau.

Mr Ouko also revealed that the management of the National Humanitarian Fund failed to provide documents and records for audit review of IDPs as required under section 13(g) of the prevention, Protection, and Assistance to IDPs and affected communities Act.

Kenya’s national census shows disparity between capital and the rest of the country

By Kenneth Mwangi

Kenya’s national census shows that Kenya’s richest households are concentrated in Nairobi and its surrounding suburbs.

A majority of Kenya’s affluent class can be found in Lang’ata and Westlands in Nairobi, with a good number owning homes with internet access and other social amenities.

Residents of these suburbs are also highly educated, most with university degrees.  

The rest of the wealthy are concentrated in Kiambu, Uasin Gishu, Nakuru, Kajiado and Laikipia counties.

Although a sizable population in these areas live in rented houses, they lead in the number of households in urban centres that own homes.  

Owning a house in such places is costly, with the price of the home driven up by prohibitive land prices. Very few people, other than the rich can afford to build or buy a house in these areas. 

The data is contained in the fourth volume of the Kenya Population and Housing Census that tackles distribution of population by socio-economic characteristics.

The census also looked at Kenyan’s housing conditions and the facilities in their homes including toilets, TV sets and refrigerators.

Lang’ata tops with car owners with 35.9 per cent of its 60,187 surveyed households owning cars. In Westlands, 32.8 per cent of 103,489 of households surveyed own cars.

Lang’ata hosts some of the most popular estates in Nairobi, including Karen and South C.

With eight administrative units, Westlands hosts some of the country’s most upmarket  suburbs such as Kitisuru, Lavington, Kilimani, Parklands and Highridge.

Poverty amidst wealth

In contrast, some of the poorest also live in Westlands in areas such as Kangemi.

According to the report, 83.5 per cent of some 104,980 households in Westlands live in rented houses. 79.5 per cent of families in Lang’ata live in rented houses.

In Lang’ata, only 20 per cent of the households surveyed own homes. Home owners make 16.5 per cent of the households surveyed in Westlands.

Lang’ata and Westlands also have high levels of internet access at 65.9 per cent and 63.7 per cent respectively.

In Kiambu, the report identifies Kiambaa, Kikuyu and Ruiru as some of the richest areas.

These areas are aptly dubbed Nairobi’s “dormitories” due to their proximity to the capital and host a huge chunk of its workers.

In Kiambaa, which hosts the emerging satellite town of Ruaka, 21 per cent of the population own cars. Kikuyu and Ruiru follow at 17.3 and 14 per cent.

Still in Kiambu, Ruiru which emerged fourth after Nairobi, Mombasa, and Nakuru and in the census with a population of 490,120, has the highest number of people living in rented houses at 84 per cent. Home ownership in Ruiru stands at 30.8 per cent.

Ruiru has spectacularly risen since the construction of the Nairobi-Eastern Bypass which saw a huge influx of land buyers.

Ruiru also has the highest number of university graduates in Kiambu at 35,737.

According to the report, 69.1 per cent of people in Kiambaa live in rental houses with home ownership standing at 16.5 per cent.

In the Rift Valley region, Nakuru and Uasin Gishu counties lead in the number of people owning cars.

Nakuru East constituency has 14.6 per cent of its population owning cars with 83.1 per cent of households living in rented houses.

In Uasin Gishu, Ainabkoi and Kapsaret areas lead in car ownership at 11.5 and 10.7 per cent respectively.

Some 46.5 percent of households in Ainbkoi and 68.6 per cent in Kapsaret live in their own houses.

Car ownership

Starehe sub-county in Nairobi also has a significant number of car owners. Out of its 66,108 households 16.9 per cent own cars. 94 per cent of residents rent houses in Starehe where home ownership stands at 5.9 per cent.

As at August 2019, Kenya had 1,511,943 graduates. According to the census, Nairobi has 386,594 residents with graduate and post-graduate qualifications. Out of these, 214,171 are male and 172,402 females.

Westlands leads in Nairobi in terms graduates. Out of 271,304, Westlands has 61,560 graduates which represents 22.6 per cent of the population. It is followed by Lang’ata which has 41,887 graduates which translates to about 25 per cent of the constituency’s population.

When it comes to standards of housing, Lang’ata and Westlands also top the list. They have the highest number of houses with tiled roofs in the country at 21.1 and 14 per cent respectively.

Biwott’s associates seek to claim debt in court

By Kenneth Mwangi

When the powerful former Cabinet minister Nicholas Biwott died on July 2017, some of the mystery surrounding him cleared. Many felt his net worth was more than the Sh1.4 billion that was revealed – a figure that could be much smaller, depending on the outcome of several debt claims now in court.

It is believed he had a stake in over 40 companies, among them Kenol Kobil, Sisibo Tea Factory, HZ Construction and Air Kenya.

But his succession has revealed that Mr Biwott was either not as wealthy as perceived, or perhaps shared out a majority of his assets before death.

Nearly three years after his demise, even the Sh1.4 billion risks being depleted owing to debt claims that are now at the centre of court battles in Nairobi and Eldoret.

The claims indicate that Biwott may have suffered a cash crunch in his final years as the former minister allegedly died before paying debts worth millions of shillings.

The latest claim has been made by lawyer Ahmed Adan, who alleges he lent Biwott Sh71 million between October, 2014 and May, 2015.

The claims could leave Biwott’s net worth at Sh500 million, or less.

On December 20, 2017, the executors of his will — lawyers Desterio Oyatsi, Hamish Keith, and Yaya Towers managing director Elisabeth Klem — asked anyone claiming money from the deceased to come forward with evidence.

The executors rejected three claims that have now become the subject of court proceedings.

Eldoret-based real estate baron Barnabas arap Kiprono, Biwott’s banker Rosemary Kamene Nzeki and Mr Adan all had their claims rejected. They now want the court to intervene.

Mr Kiprono’s claim for nearly Sh1 billion is pending determination at the Eldoret High Court.

He claims to have lent Biwott Sh382 million in cash and bank transfers to enable him to settle some debts and boost some of his businesses.

The businessman claims that interest on his loans to Biwott have pushed the total debt to nearly Sh1 billion.

Ms Nzeki says she handled Biwott’s Barclays Bank account for years and the same had pending salaries of Sh1.6 million for the period covering January-June, 2017.

LOAN EVIDENCE

The banker also loaned Biwott Sh762,600 and furnished the court with two undated cheques to prove her claim.

On March 16, 2018, Mr Adan lodged his claim with the three executors but was denied any payment. He now wants the Sh71 million with interest paid.

Mr Adan’s claim has sparked off a fight that could get dirty, as the executors now accuse the lawyer of trying to alter sales proceeds paid to Biwott into a loan.

The lawyer says he loaned Biwott the funds via bank transfers from Barclays through Wetangula, Adan & Company Advocates.

But the executors argue that the banking slips Mr Adan produced as evidence of the loans only indicate that the law firm remitted the money to Biwott as “sale proceeds and purchase price deposits”.

“It is an abuse of the court process for Mr Adan to bring this action, alleging that he paid the said sums of money as a loan to Biwott. Mr Adan’s claim is false and an abuse of the court process,” the executors stated.

JUDGE’S PROPOSAL

Mr Adan argues that the executors have not given any evidence that the monies paid to Biwott were either sale proceeds or deposits for purchases.

High Court Judge Margaret Muigai has refused to strike out the executors’ defence as requested by Mr Adan.

Judge Muigai ruled that it is urgent to confirm, through a trial, whether the claims are valid.

“The defence raises real issues for trial and cannot be struck off at this stage … There could be other plausible and legitimate explanations of these funds transfer,” the judge ruled.

Probe announced to check construction quality at Isiolo International Airport

By Kenneth Mwangi

Kenya appoints a technical team to investigate poor workmanship at the Sh 3.1 billion Isiolo International Airport following the emergence of cracks on the airport’s runway, says Eastern Regional Commissioner (RC) Isaiah Nakoru.

He  added that the team will conduct a thorough investigation, including soil analysis and establish whether the contractor used poor quality materials in order to ensure that mistakes are not repeated as the government embarks on a process to fix the cracks and extend the 1.4 km runway to 3 km so as to accommodate larger aircrafts at the facility.

Nakoru  noted that the team of experts is expected to carry out the probe and come up with a report and recommendations within a period of one week so that repair works can begin.

He  urged members of public from the region to utilize the airport, a mega government project that is picking up at a slow pace.

Speaking  to  journalists in Isiolo after accompanying team of experts and the President’s Service Delivery Unit, the RC  observed that the facility had been idle three years after it was officially opened by President Kenyatta, adding it should be made vibrant.

According  to Nakoru, the East African Safari Express, formerly Fly Sax Company has resumed flights from Nairobi to Isiolo twice in a week on Sunday and Tuesday.

The  administrator  asked counties neighbouring Isiolo to ensure they used the airport regularly, adding that the flight charges to and from Nairobi are pocket friendly.

Nakoru  said the government was committed to ensure that the facility is up and running, adding that the Kenya Airports  Authority (KAA)  would soon construct cargo shades at the facility in order to enable Miraa farmers and traders to utilize the airport to transport the perishable commodity instead of travelling by road all the way to Wilson Airport  in  Nairobi.

Kenya Is Being Sued for $173 Million over Failed Airport Project

By Kenneth Mwangi

A Chinese joint venture hired to build a major new terminal building at Kenya’s Jomo Kenyatta International Airport (JKIA) lodged a claim for Sh17.6 billion ($173.6m) after its contract was suddenly terminated in 2016, it has emerged.
The joint venture ACEG-CATIC (comprising Anhui Construction Engineering Group and China National Aero-Technology International Engineering Corporation) had already received Sh4.3 billion when the contract, worth some $630m, was cancelled in March 2016.

The claim against the Kenya Airports Authority (KAA), lodged in November 2017, was for preparing a bill of quantities (BOQ), extra costs, VAT, interest and penalties, KAA managing director Jonny Andersen told a Kenyan parliamentary committee last month, reports newspaper Business Daily.

“This claim has not been verified,” Anderson told the the Public Investments Committee (PIC). “My position as custodian of KAA who came to clean this illegal contract is that I want the money paid to the contractor (Sh4.3 billion) back. But the contractor’s position is quite opposite and therefore the need for negotiations.”

He said the claim was lodged by a letter from the joint venture dated 10 November, 2017.

Amid contradictory explanations for the cancellation of the contract, the PIC last month summoned for questioning two county governors, Martin Wambora and Francis Kimemia, who were in the cabinet when it was cancelled.

The KAA invalidated the tender on 29 March 2016 on the grounds of material differences between the terms of the request for proposal and the construction contract. KAA said the construction contract excludes 16% VAT from the contract price, contrary to the requirement of the RFP.

BQ Contractors top inaugural mid-sized company survey

By Kenneth Mwangi

BQ Contractors Limited, winners of the first edition of Tanzania’s survey of the top 100 mid-sized companies, are confident Tanzania offers enormous potential in entrepreneurial growth.

According to BQ Contractors deputy managing director, Silas Bura, the local content policy in the oil and gas sector is something that home grown firms must strive to benefit from, and they are happy about it.

He reveals that the company has been growing despite facing numerous challenges including finance, expertise and equipment. Bura says he believes the policy will help the company to increase its revenue streams.

He says BQ Contractors’ turnover has grown five folds since 2011, attributing the growth to the company’s overall win in the inaugural ‘Top 100 Mid-sized companies survey’ in 2011.That glory came with renewed trust and confidence among the company’s clients. BQ Contractors Limited deals in mechanical, civil, building and electrical engineering. The company has also ventured into the oil and gas sector.

“The oil and gas sector has a lot of competition, and projects are few and far between. Many prefer the services of foreign firms. But I can say that, after winning the Top 100 Mid-sized Companies award, we also won the trust of our clients and we are now getting more client confidence in the market, and with the local content policy in oil and gas, we remain very optimistic that things will grow from good to better,” Bura said.

He says that, since winning the Top 100 Mid-Sized Companies award, the company has managed to clinch about 40 large and medium projects, including some in the oil and gas subsectors.

This year, the company also received the coveted ISO 9001:2015 (Quality Management Ranking). “In business, this is a vital certificate as it gives the firm a chance to participate in virtually any tender local and international.

Getting this was our strategy to make sure we do not retrogress. This certificate is not easily available, and it can take anything up to two years to achieve it,” he cemented.

He adds that the company started operating as a small and medium enterprise (SMEs) in the country, employing only two engineers, five technicians and 20 permanent staff. But, after winning the Top 100 Mid-Sized Companies Award in 2011, BQ Contractors Ltd now employs more than 300 staff, including those on temporary contracts.

The company plans to increase the number of staff to alleviate the challenge of unemployment, especially engineering graduates who need jobs and field training so that they can gain necessary skills and experience.

The success of Top 100 Projects

“When we decided to participate in the 2011 inaugural Top 100 Survey nobody knew that we would become overall winners but, we are thankful that the competition has continued to grow. The Top 100 brand is very important in business growth – and it’s not easy to become the overall winner.

”He adds: Puma advertised a tender for transporting oil from deep-sea to its depot onshore, for which many foreign and local companies participated. Our offer was high, but Puma told us they wanted us because we had won the Top 100 brand. So we agreed to reduce our bid by 2 per cent.

Immediately after the Top 100 win in 2011, many projects started to come the BQ Contractor’s way. They won an average of two contracts per year, the company is currently implementing a project for Tanzania Petroleum Development Corporation (TPDC) worth $3.5 million.

Constructed from 2011 to 2012, the project connected the supply of natural gas for domes-tic and industrial use through a pipeline from Ubungo to Mikocheni in Dar es Salaam.

The company won another TPDC tender to connect three kilometers of a natural gas pipeline from Mnazi Bay to the Dangote Cement factory worth $3.752 million. BQ Contractors then went on to win a tender involving the ongoing Standard Gauge Railway project (SGR) to construct houses in the Ilala, Soga and Ngerengere areas, a job that was successfully completed.

Indeed, the company is look-ing forward to participating in the next SGR tender to build similar houses along the Morogoro- Dodoma railway line.

For its part, the Pan-African Energy has given BQ Contractors master agreement for their services in its natural gas systems. BQ Contractors has also secured mega deal to construct Tanzania Bulk Product Measurement Project Contract for Design, Supply, Installation and Commissioning of New Flow metering systems for Petroleum Products and Edible Oils at Dar es Salaam, Tanga and Mtwara ports.

Other stakeholders are The Permanent Secretary, Pres-ident’s Office of The United Republic of Tanzania, Endress + Hauser Instruments International AG, Panafrican Energy Tanzania Limited (PAET), Tan-zania Petroleum Development Corporation (TPDC), Tanzania Port Authority (TPA), Dangote Cement Limited Tanzania (DCL) etc.

The list goes on, Tanzania International Petroleum Reserves Limited (TIPER), Unilever Tea Tanzania Limited (UTTL), Puma Energy Tanzania Limited, Yapi Merkezi, Oryx Energies Tanzania(OOGL &OGTL), Cashewnuts Board of Tanzania, Arusha City Council, Arusha Urban Water Supply and Sanitation Authority, Total Tanzania Limited, Tanzania Electric Supply Company Lim-ited (TANESCO) and Tanzania Zambia Mafuta (TAZAMA) Pipelines.

The company’s future plans

Currently, BQ Contractors’ revenues are growing at an average of 20 per cent per year, with the target being 25 per cent in 2021. This is projected on the back of the company’s various development strategies, including appropriate use of the local con-tent policy.

Its future plans are to expand more by shifting from being a company owned by a single family as well as increase transparency in its financial affairs to boost the faith of clients in its operations. The firm also looks beyond the current financial challenges by focusing on new funding sources, including from commercial banks.

Conceding that financial issues remain a major challenge for BQ Contractors Ltd, he said the company will continue to emphasize joint venture pro-jects, partnering with foreign and local companies in seeking to jointly participate in major construction deals.

Challenges and the way forward

Silas Bura says, the construction industry in Tanzania faces a lot of challenges, led by financial woes, followed by lack of expertise and equipment. Many of the construction companies are family-owned, he says.

Bura notes that this some-times creates distrust among local financial institutions, especially the banks, to readily extend credit to them. He says there is a real need to adopt systems that would help small companies to secure loans as a matter of course.

His father founded BQ Con-tractors about 24 years ago, the beginning was tough. He started the company by relying on savings. His operational approach was in such a way that he never enjoyed his money, for he had to reinvest almost all the money he received after completing a contract.

“I resigned from the Croatian firm in 2007, having worked for it for over 20 years. I then joined my wife in running BQ Contractors Limited. We invested over $100,000 in the company with which to finance initial pro-jects,” says Bura’s father.

Silas Bura, the son of John Bura -founder of the BQ Con-tractors Limited who pursued his Bachelor Degree of Business in Australia, returned home after his studies to reinvigorate the company that was developed and thrived under the steward-ship of his father.

Kenya Power Challenges Tender Cancellation

By Kevin Davids

Electricity distributor Kenya Power has launched a court case to challenge the cancellation of a tender, arguing that the case should be ruled under European law.

The Daily Nation reported that, in a case filed before the High Court, Kenya Power said that claims by local contractors that they were discriminated against in favour of foreign companies were unsubstantiated.

Further, the national electricity distributor said the tender was subject to an agreement with the European Investment Bank for the project, known as Last Mile connectivity.

Kenya Power argued that the contract is subject to English law and can only be settled through the court of justice of the European Union.

It is reported that the tender was cancelled by the Public Procurement Administrative Review Board (PPARB) in early February after a group of local contractors under the Energy Sector Contractors Association challenged the procurement process.

The PPARB, comprising of chairperson Faith Waigwa and members Joseph Gitari, Nicholas Mruttu and Rahab Chacha, cancelled the process, stating that the electricity distributor abused the local preference clauses in procurement laws.

The board said Kenya Power ought to have “unbundled” or divided the tenders into smaller lots to allow the participation of local contractors.

“The procurement entity’s bidding document for procurement of design, supply, installation, commissioning of transmission lines and substations issued on 20 August 2019 be and is hereby nullified and set aside,” ruled the board.

However, Kenya Power said the board acted in excess of its jurisdiction in dealing with the matter.

“The respondent (board) assumed jurisdiction to hear and determine the dispute and thereby acted illegally,” the documents stated.

The power utility said the purpose of the contract is to attain universal access to electricity for the Kenyan population by 2030, under which it targets to connect about 300,000 new customers in 32 counties to the national grid.

The board’s decision might lead to cancellation of the entire funding of the €60 million ($65 million), the electricity distributor stated.