28 June 2014

Kenya: SGR Project Bypasses Another Technical Hitch

THE Standard Gauge Railway project has overcome another hurdle after a petition challenging the design contract was dismissed, paving way for the construction to proceed.

Public Procurement Administrative Review Board has dismissed the petition challenging the awarding of the provision of consultancy services for design review and construction supervision to TSDI - Third Railway Review Survey and Design Institute Group Corporation.

The matter has been in dispute after Team Engineering which lost the bid sought an administrative review of the tender.

The company had sought a review basing its case on two issues: that the procuring entity, Kenya Railways Corporation had not informed it of the award to the winning bidder and that the winner had a relationship with SGR's contractor -China Road and Bridge Corporation.

Kenya Railways Corporation said in a statement on Friday that with the dismissal of the case the legal problems that were slowing down the project had now been cleared and the construction will now proceed without further delay.

"We are proceeding on full steam ahead," said

KRC managing director Atanus Maina.

"We shall continue with a consultative approach on all issues with the affected County governments amongst others, including land compensation and implementation of the provision that calls for 40 per cent local content on the SGR."

When complete, the Sh327 billion project will provide a modern railway link between Mombasa and Nairobi and eventually traversing the Northern Corridor to Kigali through Kampala. The second phase of the Kenyan leg will be between Nairobi and Malaba.

The project had also faced some opposition from the political circles when some MPs questioned the awarding of the construction tender to CRBC.

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