PIC summons CS over halting of Sh56 billion airport project

A parliamentary committee has summoned Transport Cabinet Secretary James Macharia over the cancellation of a Sh56 billion airport project.

The chairman of the National Assembly Public Accounts Committee, Adan Keynan, said the committee had summoned the CS to appear before it on Tuesday.

Mr Keynan claimed the termination of the contract for the construction of a new terminal at Jomo Kenyatta International Airport (JKIA) will cost Kenyans millions of shillings, including payments to the contractor for premature termination of the contract.

Prior to the cancellation, PIC had summoned the acting Kenya Airports Authority (KAA) Managing Director Yatich Kangugo.

Big project

The Greenfield terminal construction was the second largest project meant to address the increasing number of passengers passing through Kenya's main airport and had been awarded to a Chinese firm to be built in 36 months.

The Chinese firm, China National Aero-Technology International Engineering Corporation, won the contract to design and build the facility that was to be financed by a loan from the African Development Bank.

Mr Macharia had indicated that the cancellation of the planned project was informed by a recent finding that the terminal would yield little value for money and that the funds are better used in constructing a second runway.

The minister did not, however, indicate what would happen to the contractor and whether there were any plans to compensate the Chinese firm for premature termination of the agreement.

The KAA stated that the decision to terminate the project had been occasioned by prevailing operational, economic and financial dynamics.