Phase II of the Kiambere-Mwingi water pipeline to be funded by the Italian government for Sh1.4 billion stalled because the Italian contractor is bankrupt.
The contractor has not been on-site for more than two years. The project was launched with great fanfare by President Uhuru Kenyatta in Mwingi North during the 2017 election campaign. It was to provide clean water to 200,000 residents of Kyuso, Tseikuru and Katse.
On Sunday, Josphat Mulyungi, chairman of the Kiambere-Mwingi Water and Sanitation Company, said a Chinese financier has offered to step in and salvage the situation. The company had managed Phase I.
He said the county had to seek alternative funding for Phase II after the contractor was adjudged bankrupt in Italy. He did not elaborate.
Tanathi Board CEO Martin Muamuti said the company is — or was — Santigeno Srl, which did three per cent of the work, manly project design.
He said the government had to terminate the contract with Santigeno SRL because under unclear circumstances it changed its name to Santigeno Generali Company — a different entity from the one that signed the contract.
“A private Chinese company with a factory in Mwingi Central has agreed to enter into a Sh3 billion joint venture with Kitui county government. It will not only complete Phase II but also rehabilitate the pipeline to Mwingi and Nguni," Mulyungi said.
He said the project would be completed in 12 months should negotiations by Kitui, the water company and the Chinese financier Erdemann Property Limited succeed.
“We are optimistic about negotiations as the project will ensure hundreds of thousands of residents in Kyuso, Mumoni, Tseikuru Mwingi Central and Mwingi East districts access a clean reliable water supply," Mulyungi said.
He said Kitui Deputy Governor Wathe Nzau on Friday led a delegation including water company officials to a meeting with Erdmann Property Limited in Nairobi.
The water company boss said that a follow-up meeting on terms of engagement would take place in Mwingi in a week.
