Kenya Pipeline disowns contractor over issues in Line 5 project

In Summary

• Zakhem also accused KPC of delays in confirming the letters of credit

KPC acting managing director Hudson Andambi.
KPC acting managing director Hudson Andambi.
Image: FILE

Kenya Pipeline Company limited (KPC) has disassociated itself from claims raised by a contractor of the new pipeline running from Mombasa to Nairobi.

In a an advert in one of the local newspapers today, Zakhem International Construction Limited, said it has been faced with challenges throughout the procurement and construction process, explaining reasons to inefficiencies faced with the new oil pipeline.

The Lebanese company stated among them two court cases, unfair and malicous publicity, design shortcomings and anomalies, the delay in full implementation of the project.

Zakhem also accused KPC of delays in confirming the letters of credit for material procurement which would have been provided on or about the declared date of commencement been August and September 2014.

The construction firm said it was later issued in the second half of 2016.

“From the early stages of construction, Zakhem advised KPC on several occasions the need to install the Leak Detection System,” the firm stated.

“KPC did consider this for a while and later cancelled the installation despite Zakhem reminders.”

This, giving reasons to reported incidence of oil leakage and illegal siphoning, translating to losses for the government.

The 450km pipeline project was expected to be completed by September 30, 2016, but was extended to February 9, 2017, and further to April 28, 2017, and then last year when it was commissioned due to the bad blood between the contractor and consultant.

KPC acting mananging director Hudson Andambi has said the matters raised by the contractor are bound to raise public concern, while state corporation has been ensuring that any concerns about the activities are addressed.

KPC has called the commentary was “in ad hoc and ill-considered” in what in what it termed as a weighty issue to the public.

“There are established processes within the Line 5 contract as well as in the ongoing aforementioned inquiries, that will address /adressing these issues, and it is best we leave these processes t take their course,” Andambi said.

It is reported that Kenya Pipeline Company (KPC) also aware contract to Zakhem under Shengli Engineering and Consulting Company Limited (SLECC), a Chinese firm, at a cost of Sh12 billion to supervise the construction of the pipeline.

The pipeline is also said to cost Sh49 billion.