The procurement watchdog has ordered Kenya Electricity Transmission Company Limited (Ketraco) to award a tender for the design, construction and commercial operation of a Tier IV Data Centre to Rentco Africa Limited.
In giving its orders the Public Procurement Administrative Review Board (PPARB) noted that the mere fact that a post-qualification exercise was conducted on Rentco Africa, is a sign that the company was the tenderer that had submitted the lowest evaluated responsive bid and ought to be awarded the contract.
“The first respondent be and is hereby directed to award and notify the applicant of such an award of Tender No. Ketraco-ST-009-2021 for Request for Proposal for Design, Construction and Commercial Operation of Tier IV Data Centre on a revenue share model under section 86 and 87 of the Act respectively within seven days of the date of this decision,” read part of the Public Procurement Administrative Review Board’s decision.
The background of the case is that Ketraco invited parties to submit their Expression of Interest for the provision of a Commercial Tier IV Data Centre solution.
Rentco Africa in partnership with China Mobile Limited, China Communication Services and iXAfrica Data Centre was the only party that responded to the Request for Proposal.
Rentco Africa told the Board that Ketraco agreed upon the terms of due diligence that was conducted in Singapore for which Rentco Africa incurred a cost of Sh5 million in the flight costs, accommodation and allowances that were paid to the Ketraco employees.
When the State agency failed to award it the tender it approached the PPARB for the first time and the board dismissed its application, which prompted Rentco Africa to appeal at the High Court.
The High Court issued an order compelling the PPARB to extend the tender validity period for 60 days. The Ketraco moved to the Court of Appeal, which dismissed the appeal for being incompetent.
In its defence, Ketraco stated that it had written to the Treasury for the go-ahead to proceed with the tendering process and it was yet to receive approval.
The board, however, noted that a post-qualification exercise is only conducted after a tender evaluation has been done and the lowest evaluated responsive tenderer has been awarded the contract.
