Kimunya loses as Chinese firm awarded Sh55bn airport tender
Akidi Okola, member of the Public Procurement Oversight Authority Board during a press briefing on August 29, 2012. Photo/DIANA NGILA Nation Media Group
IN SUMMARY
- PPOA directed that Kenya Airports Authority (KAA) executes the contract with the Chinese firm within 30 days from Wednesday, bringing the Sh55 billion airport upgrade back on track.
- There have been investigations into how the tender for constructing the terminal was offered to Anhui Construction Engineering Group of China and later cancelled by Transport minister Amos Kimunya.
- The terminal will be dedicated to the use by Kenya Airways and its Star Alliance Partners although the national carrier has expressed concerns over its design.
The controversy surrounding the Greenfield Terminal at the Jomo Kenyatta International Airport took a new turn on Wednesday after the Public Procurement Oversight Authority (PPOA) overruled Transport minister Amos Kimunya, and allowed a Chinese firm to begin work.
PPOA directed that Kenya Airports Authority (KAA) executes the contract with the Chinese firm, which won the tender, within 30 days from Wednesday, bringing the Sh55 billion airport upgrade back on track.
There have been investigations into how the tender for constructing the terminal was offered to Anhui Construction Engineering Group of China and later cancelled by Transport minister Amos Kimunya.
PPOA had cancelled a press conference on Monday where it was expected to rule on an appeal filed by the Chinese company over the proposed cancellation of the tender.
The press conference was postponed to Wednesday where the seven-member PPOA board gave the ruling. A board member, Akidi Okola, read the ruling.
“The directive by minister (Kimunya) asking KAA CEO to terminate the tender had no basis in law. The contract had already been awarded,” reads the ruling in part.
The Kenya Airports Authority had on Friday last week sent its chief executive, Stephen Gichuki home to allow for investigation.
However on Monday Industrial Court judge Byram Ongoya ordered the Kenya Airports Authority Board to immediately reinstate Mr Gichuki until the dispute is resolved.
The terminal will be dedicated to the use by Kenya Airways and its Star Alliance Partners although the national carrier has expressed concerns over its design.
Transport minister Amos Kimunya stopped the multi-billion shilling project, saying he suspected corrupt dealings in awarding the tender to Anhui Company.
His directive was supported by the board. Mr Gichuki, however, sought legal opinion on the repercussions of the cancellation and was advised by the Attorney-General Githu Muigai not to cancel the tender.
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