A fresh controversy has erupted over the multi-billion shillings Standard Gauge Railway (SGR) after it emerged that a contract for the supervision of the construction and procurement of facilities was awarded to another Chinese State corporation, Third Railway Survey and Design Institute Group (TSDI).

TSDI will supervise the main SGR work being undertaken by the China Roads and Bridges Corporation (CRBC).

The award of the tender by the Kenya Railways Corporation has raised eyebrows, with one firm that had placed its bid claiming that other competitors were kept in the dark on the entire process.

On May 15, Kenya Railways awarded the tender for “supervision of construction, procurement and installation of facilities, locomotives and rolling stock” to TSDI, to undertake the work with a local company, APEC of Kenya.

Curiously, APEC has supervised works for many projects undertaken by Chinese companies, including the Thika Superhighway.

Fears of compromise on the guarantee for independent supervision are now threatening to stall the project, whose tender award to CBRC was also greatly questioned, resulting in a  probe by two committees of Parliament.

However, the Public Investment and Transport Committees cleared the award of the tender to CBRC for construction of modern rail with the first phase running from Mombasa to Nairobi, with the main freight and passenger stations at Mombasa Port and Nairobi.

Kenya Railways Managing Director Atanus K Maina explained that Third Railway Survey and Design Institute Group (TSDI) won the tender competitively and “there was nothing in the tender documents excluding a Chinese firm.”

“They have no relationship with the contractor. They have done supervision for Chinese work before. Their competence and independence is not in question,” Maina said.

Maina explained three firms went to financial opening stage in December- TSDI, Korean Rail company and Team Engineering of Italy.

He added that on February 27, Kenya Railways communicated to the three firms to extend the bid bonds for two months.

“The others extended their bonds but the complainant did not. A similar request was sent to them on May 6 but they didn’t respond,” the MD said of Team Engineering of Italy.

He explained that the winning bidder quoted a price of slightly more than $41 million, Korean Rail Company was ranked second with $87 million and Team Engineering quoted $73 million.

The winning bidder was to partner with local firms hence APEC and Edon, architectural and engineering firms, are part of the deal, he added.

Though TSDI is listed as a reputable firm in undertaking survey, plotting, consultancy, design, supervision and general contracting of the projects in the fields of railway, urban rail transit system and highways, it is the manner in which it was contracted by Kenya Railways that raises eyebrows.

Successful bidder

According to a protest letter from one of the firms that had placed bids for the work, Team Engineering of Italy, Kenya Railways kept other bidders in the dark over the process, failing to even communicate to them on the successful bidder.

“Kenya Railways is yet to notify Team Engineering of the outcome of the tender, forcing one to only speculate,” the protest letter reads in part.

According to correspondence seen by The Standard, it was only after Team Engineering enquired on the status of the tender that a response, through an email was done, informing them of the outcome and the award of the tender to the Chinese company.

In an earlier letter dated June 4, under the subject “Request for Status” and addressed to the Kenya Railways Procurement Manager Lucy Njoroge, Team Engineering, through a Lamberto Menegatti, on behalf of the Managing Director Luigi Marenzi, had raised concerns over the fact that their bond for the validity period of the tender had expired, yet there was no word from Kenya Railways.

But Ms Njoroge refutes the position of the Italian firm, insisting that Kenya Railways communicated the outcome to them through both an email forwarded in their group mail and also copied to Menegatti; and also through a letter posted to them.

“On May 19, KRC did communicate to you on the notification of outcome of the tender vide email addresses… The letter was also posted to you as per the address provided in your bid submission,” says Ms Njoroge in her response mail dated June 4.