1 July 2014

Kenya: KPC Signs Sh43 Billion Contract for New Pipeline

Nairobi — The Kenya Pipeline Company (KPC) is set to begin the construction of a new oil pipeline from the port of Mombasa to Nairobi after signing a contract with the contractor, Zakhem International.

This is after the High Court and the Public Procurement Oversight Authority (PPOA) absolved KPC from any malpractice in awarding the Tender.

"The ruling by the PPOA and the High Court have vindicated KPC from any malpractice, we therefore must proceed with zeal and tenacity to meet the set timeliness," said KPC Managing Director Charles Tanui.

China Petroleum Engineering and Construction Corporation, Kalpataru Power Transmission and China WuYi Company Limited had challenged the tendering process.

The Sh43 billion project will be executed by Zakhem International under the consultancy of Shengli Engineering and Consulting Company of China.

Tanui says the project will take 18 months pointing out that quality standard and strict timelines will be adhered so as to complete the project on time.

"I am more than convinced that with over 40 years' experience the contractor has had in the construction of oil pipelines, Zakhem will meet the 18 months construction period," he said.

Tanui said rolling out of the project manifests KPC's commitment to realising the Mombasa Port Community Charter signed with other stakeholders on Monday to create capacity for handling transporting, storing and transferring petroleum products.

On his part Zakhem Managing Director Ibrahim Zakhem said the company's initial experience with the Mombasa-Nairobi oil pipeline gives them comfort in undertaking the new project.

"Being the company that constructed the Initial Mombasa-Nairobi multi product oil pipeline line in 1973, I am confident that we are equal to the task and shall certainly deliver the project within the stipulated time," Zakhem said.

Under the contract, Zakhem International will construct a 20 inch pipeline and 96 core Fibre Optic Cable along the Right of Way of KPC from Mombasa to Nairobi.

The contractor is also expected to install four new mainline pumps in parallel configuration in Pump Station (PS) 1 (Changamwe), PS3 (Maungu), PS5 (Mtito Andei) and PS7 (Sultan Hamud) and two booster pumps in PS14 (Kipevu).


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