The KPC tender is for construction of an aviation fuel depot at Jomo Kenyatta International Airport. PHOTO | FILE
Engineering firm Civicon has defended its win of a Sh1 billion fuel depot construction tender, arguing that it had initially lost the contract due to a flawed formula used by Kenya Pipeline Company (KPC).
The Public Procurement Administrative Review Board (PPARB) reversed KPC’s decision to award the tender to a consortium of four companies, giving it to Civicon which is a subsidiary of listed firm TransCentury.
Civicon’s chief financial officer Michael Wachira said in court documents that KPC erred in failing to give it the tender to construct an aviation fuel depot at the new terminal in Jomo Kenyatta International Airport (JKIA) yet it had the lowest bid.
“The formula relied upon by the procuring entity led to an erroneous outcome that would lead to a direct loss of over Sh1 billion of public funds,” he said.
Civicon and KPC are listed as interested parties in a case where an international consortium has sued the PPARB over the fuel depot tender.
The consortium consists of four companies including Danish-listed JGH Marine and a subsidiary of the China National Petroleum Corporation, CNPC Northeast Refining & Chemical Engineering Company.
Other firms in the consortium are Western Marine Services and Pride Enterprises.
Civicon and the consortium participated in the November 2014 open tender.
Civicon claims that the consortium is not a legal entity and as such cannot bring a case for the review of the board’s decision.
The consortium, however, argues that since they were aggrieved by the tender they have a right to seek legal redress.
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