Companies

Procurement board cancels multibillion-shilling JKIA parking tender

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The Jomo Kenyatta International Airport in Nairobi. FILE PHOTO

The public procurement watchdog has nullified a multibillion-shilling contract by the Kenya Airports Authority (KAA) for the installation, operation and maintenance of an automated car park system at the Jomo Kenyatta International Airport.

The Public Procurement Administrative Review Board (PPARB) ruled that KAA failed to comply with procurement laws in awarding the tender to Kenya Airports Parking Services (KAPS) last September.

KAPS had beaten six other bidders for the contract.

The procurement review board has now ordered KAA to re-evaluate the bidders afresh.

“The letter of award dated 3 January 2019 awarding (the tender) to Kenya Airports Parking Services be and is hereby cancelled and set aside,” ruled the lawyer Faith Waigwa-led agency, according to documents obtained by the Business Daily dated January 31, 2019.

“The procuring entity is hereby directed to conduct due diligence process on the bidder with the next best concession rate…within 14 days from the date of this decision.”

Other bidders

The other bidders included Mason Services Limited and joint venture partner Qntra Technology, Automatic Park Services Ltd, Atlancis Technologies, Paytech Ltd, Com Twenty One joint venture with Servest Facilities Services Ltd, and Endeavour Africa Kenya Ltd joint venture with East African Parking Ltd.

Mason and partner Qntra Technology had wanted the PPARB to review and nullify the contract.

Mason had claimed the award was fraudulent “since KAPS" shareholding is controlled by a foreign company known as KAPS Holdings Mauritius.”

Through Oyugi and Co Advocates, Mason had said KAA acted contrary to the principles of fairness and transparency in awarding a tender “to a foreign company at the expense of local contractors.”

But KAA, through lawyer Margaret Munene, had argued that ownership of a company and not place of registration determines whether it is local or foreign.

JKIA handles about 12,000 vehicle movements daily, but the authority says just under 3,000 parking spaces are available, leading to congestion.