The GDC says the board irregularly evaluated bids and quashed the State-owned firm’s award of the tender to Netfast Communications Limited.
The GDC has received Sh1.7 billion from the African Development Bank (AfDB) for the power project.
Netfast filed a separate suit also accusing the PPARB of determining issues that were not raised in the appeal filed by Lex Oilfield Solutions.
State-owned Geothermal Development Company (GDC) has sued the Public Procurement Administrative and Review Board (PPARB) seeking to have a contractor awarded a tender for drilling inspection in Menengai for a Sh1.7 billion power project.
The GDC says the board irregularly evaluated bids and quashed the State-owned firm’s award of the tender to Netfast Communications Limited, and replaced it with another local company — Lex Oilfield Solutions Limited.
The State agency has asked the High Court to halt execution of the PPARB’s decision until its appeal has been determined in court.
The GDC has received Sh1.7 billion from the African Development Bank (AfDB) for the power project. The State firm last year said it expects to make a similar amount from the sale of steam in Menengai.
Lex Oilfield Solutions had filed an appeal before the PPARB claiming that it was kicked out of tender proceedings over minor errors, which is contrary to public procurement laws.
Netfast filed a separate suit also accusing the PPARB of determining issues that were not raised in the appeal filed by Lex Oilfield Solutions.
“The review board erroneously proceeded to consider the variance of the tender prices for all bidders as declared at the opening of the bids and at the conclusion of the evaluation process, an issue which was not canvassed in Lex Oilfield’s application.
If the review board allowed the GDC to give substantive responses on the question of eventual variance of figures, the GDC would have explained that the variance resulted from a successful application for exemption of the entire contract from payment of taxes,” the parastatal says in its suit.
The board and Lex Oilfield Solutions are yet to respond to either of the suits filed by the GDC and Netfast. The GDC adds that Lex Oilfield Solutions filed its request for review outside the 14-day window after announcement of a winning bid, as required by law.
Netfast in its suit holds that the PPARB illegally awarded itself the authority to audit the entire procurement process before arriving at an erroneous conclusion.
The firm adds that in “auditing” the tender proceedings, The PPARB ended up illegally framing a case on behalf of Lex Oilfields Solutions and then determining it.
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