KPA defends Sh2bn tender award

 

Container yard at the port of Mombasa. The Public Procurement Oversight Authority has launched investigations into seven tenders worth millions of shillings awarded by the Kenya Ports Authority. 

In Summary

• However, the authority in a statement said; “We wish to reiterate that as a public entity and open to public scrutiny all the time, KPA religiously adheres to the rule of law in all its business dealings for the good of the authority and stakeholders.”

By DAVE OPIYO
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Kenya Ports Authority has defended the award of a Sh2.5 billion crane tender to an Irish company, saying it was above board.

This comes in the wake of claims that the tender award to Liebherr Container Cranes was riddled with irregularities.

The allegation prompted the Public Procurement Administration Review Board to stop the deal, pending investigations into claims that procurement rules were flouted.

In a September 12 letter, the board says it is handling an appeal filed by M/s Kocks Cranes GMBH of Germany against the award.

Tender details

The tenders included those for the supply, installation and commissioning of one pilot cutter, 13 reach stalkers, 14 new terminal tractors, 20 new skeletal trailers as well as supply of grabs, mobile harbour crane and 10 ribbed type pneumatic rubber fenders.

Five firms submitted their bids— namely M/s Liebherr Container Cranes Ltd, M/s Terex Port Solutions, M/s Kocks Crane GMBH, M/s Dalian Huarui Heavy Industry (DHHI) and M/s Cargotec Finland OY. One bid was rejected due to late submission.

Upon completion of technical evaluation, only M/s Liebherr Container Cranes Limited and M/s Kocks Cranes GMBH qualified for financial evaluation after attaining the required 80 per cent pass mark.

Thursday, the parastatal said it awarded the tender to Liebherr because it was the lowest evaluated bidder in accordance to the Public Procurement and Disposal Act 2005. M/s Liebherr quoted $29,190,850 while M/s Kocks Cranes GMBH quoted $31,421,970.

“As required by law, all bidders both successful and unsuccessful were notified of the tender outcome in accordance with Section 67(1) and (2) of the Public Procurement and Disposal Act 2005,” it says.

Following the award, KPA says it received an application by the loser (M/s Kocks Cranes GMBH), to which it responded as required by the law.

Section 93 (1) of the Public Procurement and Disposal Act allows any bidder with a complaint to lodge an appeal through the Public Procurement and Review Board.

“We are awaiting the board to fix the date of hearing,” said the authority.

“Much as we appreciate and recognise the right to complain by unsuccessful bidders, we equally encourage that such complaints are supported purely by relevant and objective facts.”