Chinese firm Geological Exploration Technology Institute (GETI) had been awarded the contracts for the survey, but Kenya later froze the deals and opted for local geologists and the National Intelligence Service (NIS) to conduct the survey.
UK-based International Geoscience Services (IGS) and Canadian firm Paterson, Grant & Watson Limited (PGW) -which are consulting for Kenya warned that survey design by GETI was not appropriate for the country.
Exim Bank of China has pulled out of the Sh7 billion funding for the airborne survey of minerals amid Kenya’s decision to freeze the contract issued to a Chinese firm.
Petroleum and Mining Cabinet Secretary John Munyes, Monday said Kenya will fund the survey.
Chinese firm Geological Exploration Technology Institute (GETI) had been awarded the contracts for the survey, but Kenya later froze the deals and opted for local geologists and the National Intelligence Service (NIS) to conduct the survey.
“It is now the Kenyan government who will fund it … it is expected to start in the next three months,” Mr Munyes said without giving details behind the exit of Exim Bank of China.
The Chinese lender has preferred to fund local projects whose contracts have been issued to firms from China.
China Eximbank provided Sh324.01 billion loans for construction of the Nairobi to Mombasa SGR line, which was built by China Road and Bridges Corporation.
Implementation of the national airborne geophysical survey has faced delays following security concerns of the data as envisaged under GETI.
UK-based International Geoscience Services (IGS) and Canadian firm Paterson, Grant & Watson Limited (PGW) -which are consulting for Kenya warned that survey design by GETI was not appropriate for the country.
The warning came amid fears that foreigners could use the data for own benefit or put sanctions in its access.
GETI has since billed the government Sh2 billion or amount equivalent to 30 percent of the contract, which was quoted at Sh6.7 billion.
“At the time GETI was put on hold, we already had a running contract with them. A contract is binding and therefore we have to pay at the end of the day,” said Mr Munyes.
Kenya has proven deposits of titanium, gold and coal. The country is also understood to hold significant deposits of copper, niobium, manganese and rare earth minerals.
Successive governments have had little success in trying to develop Kenya’s mining potential, with inadequate data and an outdated legal framework discouraging foreign exploration companies.
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