By John Njiraini and Benson Kathuri
The Kenya Pipeline Company (KPC) has completed the Mombasa-Nairobi pipeline upgrade but at higher cost, Energy PS Patrick Nyoike has said.
The final cost project that will be commissioned next week has risen from Sh3.87 billion to Sh4.31 billion.
He said the extra cost was necessitated by changes in the original designs in the course of the project implementation.
"The overall cost implicaation as a result of these changes in the original scope of the original scope of the contract was Sh441.35 million, representing 11.4 per cent," Nyoike told The Standard in his office yesterday.
He, however, faulted the KPC board for incurring the extra cost without seeking policy guidance from Energy Minister Kiraitu Murungi.
Nyoike revealed that the minister had ordered the company’s tender oversight committee to investigate the additional costs.
"The committee should immediately commission investigation to determine whether it was necessary to change the original tender designs," he said.
"It should also establish whether the right procedures in accordance with the law were followed to vary and implement the designs," said Nyoike.
The revamped pipeline can pump up to 8,800,000 litres an hour from the previous 880,000 litres. The works entailed the construction of four pumping stations along the pipeline at Samburu, Manyani, Makindu and Konza.
A Chinese firm, China Petroleum Pipeline, was awarded the tender for design and installation of the associated electrical, mechanical and instrumentation and control facilities. Triple Eight Construction and Njuca Consolidated won the tender for the civil works in the plant area as contractors.
