MPs suspend sh43b oil pipeline tender

The Kenya Pipeline Corporation's terminal in Nairobi that is also to be upgraded in the new contract. PHOTO | FILE 

By Nation Reporter
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A parliamentary watchdog committee has directed the government to suspend the implementation of a sh43 billion contract awarded to a Lebanese firm to construct a new oil pipeline between Mombasa and Nairobi.

The Public Investment Committee (PIC) wants an audit of the tender be conducted to determine the viability of the project.

 

The suspension of the tender on Wednesday comes a day after the Kenya Pipeline Corporation had formally signed the deal with Zakhem International.

(READ: Deal sealed to build oil pipeline)

Zakhem was declared the winner after it quoted the lowest at Sh43 billion beating 12 other companies.

However, losers questioned the evaluation of the bids. They challenged the selection of the Lebanese firm at the Public Procurement Oversight Authority (PPOA) and later at the High Court.

Both the Public Procurement Oversight Authority (PPOA) and the High Court gave the tendering process a clean bill of health.

PIC Chairman Adan Keynan said committee members suspended the tender after the Kenya Pipeline Corporation Managing Director Charles Tanui refused to appear before them on Wednesday.

This was the seventh time Mr Tanui had snubbed sermons to appear before the committee.