The Star (Nairobi)

7 June 2014

Kenya: Firm Disputes Sh53 Billion Pipeline Tender Award

AN unsuccessful bidder for a tender for the replacement and expansion of the Kenya Pipleline Company's pipeline from Mombasa to Nairobi has filed for the review of the award.

A source at the Public Procurement Administrative Oversight Review Board told the Star that one of the companies has filed an application challenging the Sh53 billion tender.

Zhakem International Construction Ltd is alleged to have won the tender after getting the highest score in the bids. But the source said technical results were changed at the last minute "to tilt the results".

He said the financial proposals were not opened publicly against the tender rules. The opening of the financial bids was done on June 3. Section 5.6.2 of the tender documents requires that the financial proposals be opened publicly in the presence of all bidders.

"The name of the bidders, the technical scores and the proposed prices shall be read aloud and recorded when the financial proposals are opened," it states.

The client is also required to prepare minutes of the public opening but the source said no minutes were prepared. Kenya Pipeline Managing Director Charles Tanui said they have been served with the notice of the application for review.

He, however, said he has not looked at the documents. Some seven companies had made it to the financial and technical evaluation stage. Three Chinese companies, China Petroleum Engineering and Construction Company, Sinopec International Petroleum and China Wuyi Company Ltd made it to the last stage. Other companies were Indian company Punj Loyd Ltd, Zakhem, Saipem Business Unit Engineering Construction SPA (Italy) and Dennys NV of Belgium. Thirteen companies had applied.

The expansion of the 450km pipeline is one of the large projects set to be undertaken by the government. The new pipeline will have double the capacity of the current one.

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