Sh270m tender row pits ERC against Swiss company

The Energy Regulatory Commission is entangled in a Sh270 million tender row with a Swiss firm that monitors its fuel adulteration and substandard gas.

The energy regulator kicked off a row with SGS Kenya Ltd after it cancelled a fresh tender for monitoring the petroleum products.

READ: Swiss firm wins ERC contract to label oil products

SGS now wants the tender cancellation declared illegal and the tendering process allowed to proceed in the dispute that is before the Public Procurement Administrative Review Board. The board will Tuesday issue its verdict on the matter. The SGS claims the cancellation exposed its tender secrets, including financial bids, that would allow other bidders to undercut it should a fresh tender be done.

The tender numbered ERC/PROC/4/3/16-17/119 was advertised in April and evaluation of the bids completed in June. Three bids were shortlisted including the Swiss firm SICPA, which was single-sourced by the Kenya Revenue Authority to provide the excise tax management systems, and UK-based Intertek testing services.