Sh40 Billion Kipevu Tender Given To Outlawed Chinese Firm

A Chinese firm that has been awarded a Sh40 billion tender to construct the Kipevu Oil Terminal in Mombasa is in fact under investigation and had been blacklisted by the World Bank at the time the Kenya Ports Authority invited them to bid for the project.

The Ethics and Anti-Corruption Commission is looking into the matter, including allegations that the cost of the project was inflated from Sh15 billion to Sh25 billion and then a again to Sh40 billion.

KPA floated the tender on March 23, 2016 and 31 bidders from at least 15 countries showed interest. According to a press release issued by KPA during the prequalification stage, which was done in May 2016, tenders for construction were supposed to be issued in July 2016 and construction to commence at the beginning of 2017.

But it wasn't until June 30 last year that China Communications Construction Company (CCCC) was awarded the lucrative tender after close to two years of waiting. KPA delayed making the announcement until September for unknown reasons.

CCCC's parent company, China Road and Bridge Corporation (CRBC), had been blacklisted by the World Bank in 2009 for an eight-year period until January 12, 2017, after an investigation discovered that CRBC had "engaged in collusive practices in World Bank-funded projects in the Philippines".

The information, which is available on the World Bank's debarred list, also said that CRBC had colluded with Philippines' state officials to enter "non-competitive, artificially high bid prices".