By JOHN NJIRAINI

Kenya Railways Corporation (KRC) has advertised afresh a tender for a modern railway network even as dark clouds hang over the management for flouting procurement rules in the first attempt.

Soon after the Financial Journal exclusively revealed how the firm flouted rules and awarded the contract to two different firms before terminating the process, KRC is seeking for consultants.

The company has advertised seeking proposals for preliminary design and environmental and social impact assessment services for the proposed modern standard gauge railway line between Mombasa and Malaba with a branch line to Kisumu.

"The Government intends to enhance capacity in the transport sector to improve efficiency, cost effectiveness and competitiveness of the sector to facilitate rapid economic growth," said a statement by KRC Managing Director Nduva Muli appearing in a section of the press.

Funds set aside

It added the Government has set aside funds to initiate the development of the railway that will also be extended to Uganda and the Great Lakes region.

Ironically, the move by KRC to seek for consultants for the project comes barely a fortnight after the company terminated an initial process ostensibly on the basis that the bid amount exceeded the allocated budget.

"It was not possible to proceed with the procurement as it would contravene the provisions of Section 26(3) of the Public Procurement and Disposal Act 2005," said the firm when terminating the contract.

Though the Government had allocated Sh700 million, KRC had controversially awarded the contract to Italian firm Italferr SPA, which had quoted a price of Sh1.2 billion.

This was after KRC quashed a decision to award the contract to a South Korean company, Total Engineering Services by Operation (Teso) that had quoted the lowest bid price of Sh750 million.

In the first attempt, 65 firms bought the tender documents though only 16 international companies in consortiums with local partners presented their proposals to undertake the job.

Controversially, two firms out of the 16 were shortlisted before the process was suddenly called off.

The current metre gauge railway lines being used in Kenya and Uganda are old leading to high operation costs and less returns for investors.

Experts fear the dilapidated metre gauge railway will not support the East Africa Community transport needs.