Economy

PS defies Wamalwa on dam tender award

EUGENE

Eugene Wamalwa, Water and Irrigation Cabinet Secretary. FILE PHOTO | NMG

Irrigation Principal Secretary Patrick Nduati Mwangi has defied his boss Eugene Wamalwa and gone ahead to  award a controversial dam construction tender to a Chinese firm that could see taxpayers lose more than Sh3 billion.

Mr Mwangi has awarded the Sh62.3 billion Thwake dam contract to the second lowest evaluated bidder—STECOL Corporation (Sino Hydro Tianjin Engineering Co Ltd and proceeded to inform the lowest bidder—China Gezhouba Construction Group Corporation (CGGC) that its bid was unsuccessful.

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China Gezhouba won the Tender Processing Evaluation Committee (TPC) stage after putting in a bid of Sh36.9 billion for the first phase of the multibillion shilling dam, but the Ministerial Tender Committee (MTC) that was appointed by Mr Mwangi went ahead and awarded the contract to (Sino Hydro) at a cost of Sh39.5 billion.

“In line with the Public Procurement and Disposal Act, 2005, section 83(1), you are notified that your bid for construction of Thwake Multi-Purpose Water Development Programme Phase I has been successful…subject to successful negotiation to the lowest bidder price of Sh36,971,346,444,” Mr Mwangi said in a letter to Sino Hydro dated Monday 27, 2017.

He informed the bidder that the tender will also be subject to confirmation by the Treasury of availability of the money and clearance of award by the Attorney General Prof Githu Muigai.

Mr Wamalwa last week warned Mr Mwangi that he will be held personally responsible if his decision to award the tender will result in an extra cost of Sh3 billion from the lowest evaluated bidder.

He told the Agriculture committee that the PS had sought his opinion, that of the Attorney General, the project financier-African Development Bank (AfDB) and the Ethics and Anti-Corruption Commission (EACC) who all advised that Mr Mwangi awards the contract to the lowest evaluated bidder.

Mr Wamalwa and Mr Mwangi have been at loggerheads over the award of the tender that two Chinese firms—CGGC and Sino Hydro—have been battling for.

Picking the winner of the contract has sparked a vicious war between the two officials.

While Mr Wamalwa insists that the contract should be awarded to the lowest bidder (China Gezhouba as recommended by the TPC, Mr Mwangi has sided with the recommendations of the MTC that approved award of the contract to the second highest evaluated bidder (Sino Hydro).

Mr Mwangi had earlier told MPs that he would back the decision of the MTC.