Appeal to force KPC to sign Sh7.9bn tender for aviation fuel depot dismissed

September 27, 2016
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The fuel depot was to serve the Greenfield project at the JKIA/FILE
The fuel depot was to serve the Greenfield project at the JKIA/FILE

, NAIROBI, Kenya, Sep 27 – Public Procurement and Administration Review Board has dismissed an appeal by an international consortium to force the Kenya Pipeline Company to sign the Sh7.9 billion tender to construct an Aviation Fuel Depot at the Jomo Kenyatta International Airport (JKIA).

The Board ruled that the consortium did not forward a contract to the Kenya Pipeline Company within 14 days and that KPC was right in cancelling the tender.

The consortium consists of four companies, including Danish-listed JGH Marine and a subsidiary of the China National Petroleum Corporation, CNPC Northeast Refining & Chemical Engineering Company.

Other firms in the consortium are Western Marine Services Limited and Pride Enterprises.

According to the board the consortium was supposed to forward a contract to the Kenya Pipeline Company within 14 days following the decision by the board to uphold that the consortium was awarded the tender rightfully after a review challenged by Civicon Limited a subsidiary of Transcentury limited.

The fuel depot was to serve the Greenfield project at the JKIA.

However, the government shelved the plan to construct the new Sh56 billion Greenfield terminal saying that it was informed by findings that the terminal would yield little value for money and that the funds are better used constructing a second runway.

Lawyer Donald Kipkorir represented Kenya Pipeline and Coulson Harney were representing JGH Marine during the Appeals.

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