Economy

China locks out rivals from police telecoms tender

mats pix

A traffic police officer looks on as passengers disembark from a matatu during a crackdown of un roadworthy vehicles. The tender for the security contract clearly states that only Chinese companies are eligible for tendering for the Kenya Police Services telecoms project whose deadline and opening of bids is February 20. Photo/FILE

The government is preparing to revive part of the controversial Anglo Leasing projects in a tied aid deal with China that will see firms from the West barred from bidding.

The tender for the security contract clearly states that only Chinese companies are eligible for tendering for the Kenya Police Services telecoms project whose deadline and opening of bids is February 20.

Besides securing police communications system, which has been fair game even for unsophisticated criminals, it is expected to bring down costs of communication as the country will own the system on handover.

The secure command and control system encompasses telephone facilities, vehicle and video tracking systems and digital recordings equipment, amongst others.

The project would be implemented under the Ministry of State for Provincial Administration and Internal Security.

A winning contractor is expected to do a build operate and transfer contract although they will help with the technical aspects of running it later.

During the dying days of the Moi regime, the government attempted to establish a similar system for the pre-election Administration Police, expected to cost Sh5.6 billion, and separate ones for the Prisons Department and the military.

The scheme was inherited by elements in the Kibaki government and morphed into the now infamous 18-contract Anglo Leasing deals in which the country could still lose billions in dispute arbitrations arising from the dodgy State-guaranteed projects.

No prosecution regarding the mega scandal has taken place so far.

The state for now seems to have settled on implementing the Kenya Police one after getting a concessionary loan from China.

The future of the Administration Police as an autonomous entity seems to have been sealed by the Constitution, which only recognises the Police: “Parliament may enact legislation establishing other police services under the supervision of the National Police Service and the command of the Inspector-General of the Service.”

Sources familiar with telecoms projects suggested this was one of a number of projects President Kibaki signed for during his visit to China in May 2010, a foray which bagged Sh1.2 billion in project grants after bilateral talks with President Hu Jintao. They say the project was granted $100 million (about Sh840 million).

A similar private project, Tetra Radio, whose digital frequencies are at the centre of a row between Communications Commission of Kenya and a private firm, was expected to cost $250 million, a difference that may be explained by the Chinese factor in pricing and advances in technology.

The state cancelled the licence of the firm for operating commercial trunk network for security and emergency services and said it had reallocated the frequencies despite losing a court case, a decision, which it later appealed.
While the restriction of the project to Chinese companies is unlikely to go well especially with Western firms, it is a familiar trend in Chinese-funded projects, which has recently hit a valuation of Sh42 billion.

Chinese telecoms themselves are fiercely competitive with state-owned Huawei and the private ZTE Corporation often going for each others’ jugular.

Reading the tender terms, it is easy to tell that this is not exactly an open process even for the Chinese.The bidders are supposed to “provide evidence that the government of China has no objection to the firm’s participation in this tender”.

Another restriction is that applicants have to have had implemented similar projects elsewhere.
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