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Chinese Company In JKIA Terminal Saga Now Seeking Ksh22 Billion For Termination Of Contract

/Courtesy

Kenyan government could part with a total of Ksh21.9 billion to Chinese firm ACEG-CAT JV, for no work done, following the cancellation of a tender to construct Greenfield Terminal at the Jomo Kenyatta International Airport (JKIA).

The company had already received Ksh4.3 billion before the contract was cancelled, and is now seeking Ksh17.6 billion for ‘losses’.

Reports by Business Daily indicate that the firm is demanding Ksh2 billion for the preparation of bill of quantities (BOQ), Ksh2.4 billion in extra costs and Ksh708.2 million in Value Added Tax (VAT).

The firm is also seeking additional Ksh5.6 billion for balance of contract for the BOQ and Ksh500 million in accrued interests.

The tender was cancelled in March 2016, after an expenditure of Ksh75 million in ground breaking ceremony. The ceremony was presided over by President Uhuru Kenyatta in 2014.

KAA cancelled the tender on grounds that there was material difference between the terms of the request for proposal (RFP) and the construction contract. KAA had indicated that the construction contract excluded the VAT while the RFP indicated otherwise.

PriceWaterHouseCoopers (PWC) got Ksh7 million for securing financier to the project while Louise Berger got Ksh129.9 million for consultancy services.

Appearing before the Public Investments Committee, the Kenya Airports Authority (KAA) managing director Jony Anderson said that negotiations between the government and the company was the way to go.

“The claim has not been verified. My position as custodian of KAA who came to clean this illegal contract is that I want the money paid to the contractor back. But the contractor’s position is quite opposite and therefore the need for negotiations,” said Mr Anderson.

Read: Gov’t Abandons Plans To Repair Nakuru-Kisumu Railway Line, Says Line ‘Too Damaged’

Others who have been summoned by the committee include Embu governor Martin Wambora who was the then chairman of the KAA Board, Nyandarua governor Francis Kimemia who then served as the head of Public service.

Kipipiri MP Amos Kimunya has also been summoned, who served as the minister for transport.

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Francis Muli

Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. He believes in unearthing societal rots that have been hidden from the public eye. He has also carved himself a niche in writing business stories. He has worked for various organisations including Kenya Television Service, Business Today among others. Follow him on Twitter @FmuliKE.
Email: mulifranc2@gmail.com

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