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The Nairobian

Firm sues to block Sh3.5b hydro projects

Business

By Kamau Muthoni | Nov 04, 2016

A Sri-Lankan firm has moved to the High Court to block Sh3.5 billion hydropower projects steered by Kenya Tea Development Agency (KTDA).

Hydropower International (PVT) Ltd in its case filed by Nyachoti and Company advocates yesterday lamented that the lucrative deal awarded to Indian firm Boom Systems (PVT) Ltd and VS Hydro (PVT) Ltd, which is also from Sri-Lanka, was unlawful.

The court papers read that Boom Systems had initially picked Hadish Engineering Company Ltd but it dropped the partner for VS Hydro in June this year. Hydropower complained its competitors flouted rules set in the tendering process.

"The first defendant (KTDA holdings Ltd) and second defendant (KTDA Power Company) on their part acquiesced to the formation of the aforesaid unincorporated Joint Venture despite having issued strict and mandatory guidelines relating to the criteria for admission and subsequent consideration of Joint Ventures, thereby interfering with the procedural propriety, fairness, integrity and transparency of the tender process," the court papers read.

The new legal battle involves Chemosit (2.5MW), Kipsonoi I (3.6MW) and Rupingazi (1.8 MW) small Hydropower projects located on Rivers Chemosit, Kipsonoi and Rupingazi in Kericho, Bomet and Embu counties.

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Chemosit will cost close to $9 million (Sh914 million) whereas Kipsonoi is the highest at $18.8 million (Sh1.9 billion). At the same time Rupingazi will cost $7.4 million (Sh751 million) and will take 30 months to complete.

Hydropower also complained the firm that clinched the contested tender did not carry out site visits as was required by the tender rules. The firm wants the court to stop KTDA from signing the deal until the case is heard and determined.