The Attorney General has blocked termination of Galana Kulalu contract even as MPs ordered an audit on the project to establish cause of stalemate between the government and the Israeli contractor.
The National Irrigation Board had proposed contract termination to the AG and to the Treasury after Green Avara downed tools for months citing nonpayment. Green Avara has accused the NIB of sabotage, saying it failed to honour payment requests for shipping of vital equipment to complete the remaining 15 percent of the project construction phase.
“The Attorney General advised that termination of the contract carries with it certain consequences that will directly impact on the loan agreement with Bank Leumi,” Fred Sigor, Agriculture principal secretary told the Senate Committee on Agriculture.
NIB procured Green Avara at Sh14.5 billion, which was revised to Sh7.2 billion after a deferment of some items in the contract
The project was to be completed by March 2017, but has stalled following the contractual stalemate.