Company fights for Sh28bn Elgeyo dam

KEY RESOURCE: Chebara Dam in Elgeyo Marakwet county, which supplies water to Eldoret town and environs.
KEY RESOURCE: Chebara Dam in Elgeyo Marakwet county, which supplies water to Eldoret town and environs.

THE construction of the multibillion-shilling dam in Elgeyo Marakwet county could take longer after a losing bidder moved to the High Court, challenging the award of the tender to an Italian company.

Sosain Energy Consortium argues the tender was marred by irregularities, which were ignored by the Public Procurement Appeals Review Board.

The company moved to the High Court after its request for review was rejected by the board on January 27.

The Sh28.8 billion tender for the construction of the dam in Embubut, was announced in 2014 and won by Cooperativa Muratori-Cementisti Di Ravena.

The tender also includes the construction of appurtenant works, access roads, hydro-power plant, transmission lines and related facilities.

The winning bidder will also develop 2,000 hectares of land to be put under irrigation, development water supply and storage system to support 500,000 people and catchment conservation.

The bids were opened in March last year and nine bidders participated in the process.

Five were later knocked out for not meeting the mandatory requirements.

Four companies, which included Nari Group Corporation, Sinohydro Corporation Ltd, Cooperativa Muratori-Cementisti Di Ravena and Sosian met the technical specifications.

Kerio Valley Development Authority later asked Nari Group Corporation, Sinohydro Corporation Ltd and Cooperativa Muratori-Cementisti Di Ravena to meet and negotiate for a concession contract.

The award was deferred to a later date. CMCDR was to be announced the winner but Sosian argues there were inconsistencies in the process. But its request for review was rejected.

Sosian says KVDA disregarded procurement procedures and the decision was arrived at in an opaque manner.

In a sworn statement in support of the review, Sosian's CEO Henry Rotich says no invitation was issued to bidders who passed the technical stage to witness opening of financial proposals, contrary to the Public and Procurement Act of 2005.

He says a plea to KVDA to avail how the ranking of the companies was made was rejected.

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