Firm sues over bid to supply booster pumps

A Kenya Pipeline Company depot in Nairobi. The battle for the lucrative Kenya Pipeline Company tenders to replace the old pipeline has now moved to court after a dissatisfied bidder claimed breach of contract between it and the main contractor. FILE PHOTO |   Nation Media Group

In Summary

• The petitioner wants the court to issue an interim injunction restraining Zakheem from conducting or facilitating any evaluation or accepting any bid other than that of Ruhrpumpen for supply of booster and mainline pumps.
• “Our offer together with our competitors were opened and the three bids were Flowserve $22.5 million (Sh2.04 billion); Ebara Corporation $19.8 million (Sh1.8bn) and Ruhrpumpen $15.5 million (Sh1.4 billion).”
• Ruhrpumpen argues in the suit that a decision to award the tender to Ebara Corporation will result in the loss of $4.3 million (Sh391 million) public funds.

By MAZERA NDURYA
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The battle for the lucrative Kenya Pipeline Company tenders to replace the old pipeline has now moved to court after a dissatisfied bidder claimed breach of contract between it and the main contractor.

Ruhrpumpen Global Ltd also accuses the KPC managing director of inducing Zakheem International Construction Ltd, which was awarded the multi-billion contract, to break an agreement between the pair.

The petitioner wants the court to issue an interim injunction restraining Zakheem from conducting or facilitating any evaluation or accepting any bid other than that of Ruhrpumpen for supply of booster and mainline pumps.

The company states that around June 2014, Zakheem submitted to it an inquiry in respect of a pipeline replacement project and regarding the supply of submerged pumps, booster and main line pumps.

ADJUST PRICES
“Our offer together with our competitors were opened and the three bids were Flowserve $22.5 million (Sh2.04 billion); Ebara Corporation $19.8 million (Sh1.8bn) and Ruhrpumpen $15.5 million (Sh1.4 billion).”

Flowserve pulled out after it discovered its bid had been grossly overpriced, while Ebara Corporation was asked to adjust its prices but declined, leaving Ruhrpumpen to proceed.

But in a new development, Ruhrpumpen was informed by Zakheem that its bid had been declined by the KPC managing director on grounds that the company was not in the list of approved manufacturers.

“The managing director is hell bent on ensuring that Ebara Corporation is awarded the contract to supply the booster pumps and mainline pump, and there are fears that he could fast-track the evaluation exercise with a single supplier (Ebara Corporation) and cause them to be awarded the contract,” Ruhrpumpen said in court papers.

Ruhrpumpen argues in the suit that a decision to award the tender to Ebara Corporation will result in the loss of $4.3 million (Sh391 million) public funds.

Zakheem and Kenya Pipeline Company have one week to respond to the civil suit.

High Court Judge Francis Gikonyo certified the matter urgent and directed that the case be heard on March 5.