Wednesday, May 10, 2017

House blames KPC, contractor tiff for Sh48bn pipeline delay

The Public Investments Committee (PIC) chairman Adan Keynan. FILE PHOTO | NMG The Public Investments Committee (PIC) chairman Adan Keynan. FILE PHOTO | NMG 
The poor working relationship between Kenya Pipeline Company (KPC), the contractor and the project consultant is behind the delay in completion of the Sh48 billion Mombasa-Nairobi oil pipeline, a House committee now says.
The Public Investments Committee (PIC) says the tug-of-war between the KPC, the contractor Zakhem International Construction (ZIC), and project consultant Shengli Engineering & Consulting Company Limited (SLECC) has adversely hampered the progress of works, which was scheduled for completion by end of April.
The 450km pipeline was expected to be completed by September 30 last year but was extended to February 9, 2017 and further to April 28, 2017.
At the time PIC inspected the works in February the pipeline was 75.71 per cent done.
The committee said that there is an apparent conflict of interest between ZIC Ltd, and SLECC, which is owned by SINOPEC, one of the failed bidders of the contract, but which ended up being awarded the consultancy contract for the project.
“The alleged intentional delay in submitting drawings issued for construction on October 2014 to the contractor by three-and-a-half months after the expected date of commencement of the project among other claims of sabotage by the contractor may therefore be true,” PIC, chaired by Eldas MP Adan Keynan, said.
The committee said the progress of work has been adversely affected by poor working relations among the three parties.

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