24 July 2014

Kenya: Sh7.1 Billion Deal Signed Secretly - Ranguma

KISUMU Governor Jack Ranguma has distanced himself from the Sh7.1 billion waste management deal between the county and two international companies.

Last Week, the county government signed the new waste management deal after the court cancelled the initial Sh18 billion tender for a similar project.

Two international companies; US based Global Waste to Energy and Netherland's Integrated Basic Infrastructure Services, signed an MoU with the Kisumu government to support the project at Sh2.6 billion and Sh4.5 billion respectively.

Acting city manager Doris Ombara, who presided over the ceremony at the Town Hall said the French Development Corporation has injected Sh1.5 billion for a landfill.

"Today we have signed a Memorandum of Understanding between the Kisumu county government and the two international companies for the waste management project, where waste will be used to produce bio-degradable fertilisers and energy," Ombara said last Thursday.

But speaking at his office on Tuesday, Ranguma said he was not aware of the MoU.

During the ceremony at the Town Hall last Week, Ranguma was represented by the county Bio-Energy and Climate Change chief officer, Lorna Omuodo.

Ranguma has however, disassociated his office from the deal saying he was only aware of the Sh1.5 million for the Kisumu Urban Project received from the French Development Corporation.

"What occurred last Week at the Town Hall was not the signing of an MoU but an invitation of cooperation with the two international organisations," he said.

Ranguma said if the county government is expected to pay any money, it has to enter into an international tender for efficient service delivery.

The county government had initially signed a Sh18 billion waste management deal with Madam R Enterprises before a resident Eric Okeyo challenged it in court.

He succesfuly sued the county government leading to the cancellation of the deal.

Yesterday, Okeyo criticised the MoU signed last week saying a city manager cannot "purport to commit an entire county to any MoU either with local or international organisations."

During the signing of the MoU last Week, GW2E Vice President Adrian Oliveira and IBIS Vice President for Business Development Shirlene Brown said the project will ensure recycling of waste and will create employment for locals.

The county Bio-Energy and Climate Change chief officer, Lorna Omuodo, said they intend to produce bio-fuels from the project.

Omuodo said the current energy tariffs scare off potential investors from the county.

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