STALLED

Ketraco's White Elephants are worth Sh19 billion

A number of projects initiated by the company have either stalled or are past the completion dates.

In Summary

• Ouko also put the management of Ketraco on the spot over pending wayleave compensations amounting to Sh4.8 billion.

• Four contractors were assigned to implement the project at a combined contract price of approximately Sh10, 512, 241, 235

Auditor General Edward Ouko
Auditor General Edward Ouko

The management of the Kenya Electricity Transmission Company Limited is on the spot over stalled projects worth more than Sh19 billion.

A report by Auditor General Edward Ouko revealed that a number of projects initiated by the company have either stalled or are past the completion dates.

The projects include the Sh10.51 billion Nairobi Ring Project which was started in 2012. It was supposed to be completed in November 2014, but by June 2018, it was incomplete.

It entailed the construction of a power transmission line from Suswa to Isinya. Five sub-stations were also supposed to be constructed at Suswa, Kimuka, Isinya, Athi River and Komarock.

“Four contractors were assigned to implement the project at a combined contract price of approximately Sh10, 512, 241, 235,” reads the report.

The report, which was tabled in the National Assembly last Thursday, also indicted the management of Ketraco over the stalled Sh941 million Lessos-Tororo Power transmission line commonly known as the Kenya-Uganda interconnector.

It involved the construction of a transmission line from Lessos sub-station in Kenya to Tororo sub-station near the Kenya-Uganda border.

The project commenced in September 2013 and was scheduled to be completed in April 2015. However, as of June 30, 2018, only 37 per cent of the transmission line and 40 per cent of the sub-stations had been completed.

“The contract was terminated in April 2016 due to none-performance by the contractor, following which, the contractor obtained court orders stopping Ketraco from accessing the site or hiring a new contractor until a final settlement on the dispute is reached,” Ouko said.

Further, Ouko flagged the delays in the completion of the Nyahururu-Nanyuki-Lessos-Kabarnet and Wote Mwingi Transmission lines which  were part of the Sh7.2 billion Power Transmission System Improvement Project.

 
 

The projects were one year behind schedule by June 30, 2018.

According to the management, the completion of the four transmission lines was delayed due to inadequate counterpart funding for wayleave acquisition and contractor financial challenges which led to slow delivery of materials.

But the auditor questioned why the stated risks were not identified at the project planning stage and mitigation measures taken to minimize their expected impact on project completion.

Ouko also put the management of Ketraco on the spot over pending wayleave compensations amounting to Sh4.8 billion.

“Delays in compensating project affected persons may lead to project delays, cost escalations and legal suites,” the auditor noted in the report.