A deserted construction site at Itare Dam in Kuresoi South, Nakuru County on October 9, 2018. FILE PHOTO | NATION MEDIA GROUP
A parliamentary committee has warned that
the government risks not getting value for the Sh120 billion invested in
the construction of eight dams across the country.
It
has emerged that some of the projects are way behind schedule while
others stalled after the contractors pulled out, despite having been
paid billions of shillings.
A
report by the National Assembly Committee on Environment and Natural
Resources, tabled in the House last Thursday, recommended a raft of
measures, including special audits of some of the dams as well as their
financing models.
The
committee chaired by Maara MP Kareke Mbiuki questioned use of the
Engineer Procure Construct and Finance (EPCF) financing model, saying it
was unnecessarily expensive.
FINANCING MODEL
The
team chaired by Maara MP Kareke Mbiuki questioned use of the Engineer
Procure Construct and Finance (EPCF) financing model, saying it was
unnecessarily expensive.
For instance, it notes that the
amounts paid in insurance for the dams’ construction under the model
were exorbitant, compared to other financing models.
“This
model is, therefore, prone to abuse and value for money may not be
efficiently realised,” the report to be debated by MPs says.
The
Sh29 billion Itare dam in Nakuru County, that stalled after the
contractor, Italian firm CMC di Ravenna, was declared bankrupt, is among
those financed using the model.
The construction began in June, 2016, and was due to end by July 2022 but has since stalled.
THWAKE DAM
The
Sh36.97 billion Thwake multipurpose dam in Makueni County was meant to
provide water for hydropower generation, irrigation and domestic use and
was financed by a loan from Africa Development Bank.
It
is situated at the confluence of Thwake and Athi rivers but the water
from the Athi River feeding into the dam is highly polluted, making it
unfit for domestic use.
Only
seven percent of the work has been done, although China Gezhouba Group
Company Limited has already received a Sh7.4 billion advance payment.
The Sh23.6 billion Karimenu II dam in Kiambu County is also facing challenges.
The
committee wants the Auditor-General’s office to investigate the
circumstances under the Athi Water Works Development Agency and AVIC
International signed agreements, with advance payments made before the
necessary land was acquired.
OTHER PROJECTS
Construction
of the Sh14 billion Mwache Dam in Kwale County was supposed to start at
the beginning of this year but was hampered by delays in compensation
of more than 4,000 affected people.
Badasa Dam in Marsabit County was meant to augment Bakuli water supply, which serves Marsabit town and its environs.
It was started in June, 2009 and was scheduled to take 30 months but has stalled, with 57 percent of the work completed.
Construction
of the Sh6.83 billion Northern Collector Tunnel, which began in
February 2015 and was to be completed in December has also stalled.
"The human resource was not commensurate with the advance payment made, leading to slow progress of works,” the report says.
The committee wants the perpetrators prosecuted for loss of public funds through idle time if culpability is found.
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