A multimillion dollar tender to replace old pumps on the Mombasa-Nairobi pipeline can proceed without after the High Court dismissed a case challenging the contract.
Yesterday, Justice Fred Ochieng ruled that Ruhrpumpen Global limited which had sought to block the tender by Kenya Pipeline Company to Zakheem limited had no grounds to challenge the Sh43 billion contract.
The judge said Ruhrpumpen had not signed any deal to supply pumps with Zakhem Limited and reasons to the stoppage of the tender.
“I find that it favors the continuation of the project rather than putting a stop to it. I saw find because if there were no other bidders left after Ruhrpumpen withdrew and if the firm was not awarded the contract, the procurement process will begin a fresh” ruled Ochieng.
The judge said he did not find merits in the firm’s application saying evidence in court proved that there was no contract between the two companies (Ruhrpumpen and Zakhem) that was independent of Kenya Pipeline Company.
He ruled that Ruhpumpen Global Limited would not base its claim on the basis that it was the only company left to bid for the lucrative deal.
The judge said dealing to the project while waiting for the case to be determined may well result in price fluctuations that could cause a threat to the whole project.
“Zakhem had recommended Ruhpumpen but the offer was disapproved. It appears to me that the final decision lied with the client who is the user of the pipeline and not the contractor who was to replace the old pipeline,” justice Ochieng said.
Ruhpumpen was the only company remaining on the deal to supply pumps to Zakhem as a sub-contractor. However the tables turned after KPC disapproved the tender on the basis firm was not in its list of manufacturers as was required in the tendering rules. The tender was given to Ebara Construction
Zakhem Ltd, a Lebanese-owned family company, won the tender to be the project’s main contractor. It was also agreed by both the company and KPC that they bring a list of manufacturers to supply submerged pumps, booster and main line pumps where the best contender would be given the sub-contract.