Economy

KPC signs Sh43b contract with Zakhem for new pipeline

KPC

Construction of a new oil pipeline from Mombasa to Nairobi is set to begin after Kenya Pipeline Corporation signed a Sh43 billion contract with Lebanese firm Zakhem International. Photo/FILE

Construction of a new oil pipeline from Mombasa to Nairobi is set to begin after Kenya Pipeline Corporation signed a Sh43 billion contract with Lebanese firm Zakhem International.

The new 20-inch multi-product pipeline will replace the existing which was constructed in 1973 by the same company.

The contractor has a deadline of 18 months to finish the project.

"I am more than convinced that with over 40 years experience the contractor has had in the construction of oil pipelines, Zakhem will meet the 18 month construction period," said KPC managing director Charles Tanui after the signing of the contract.

The project will be executed by Zakhem International under the consultancy of Shengli Engineering and Consulting Company Limited of China.

It will include construction of four new mainline pumps in Changamwe, Maungu, Mtito Andei and Sultan Hamud and two booster pumps in Kipevu.

It will also see the upgrade of the fire fighting system in Jomo Kenyatta International Airport and the Nairobi terminal.

Three companies that had lost the bid, China Petroleum Engineering and Construction Corporation, Kalpataru Power Transmission and China WuYi Company Limited, had challenged the decision to award the tender to Zakhem International.

READ: Bidders challenge award of Sh43bn fuel pipeline deal to Lebanese firm

However the Public Procurement Oversight Authority (PPOA) and the High Court absolved KPC from any malpractice.