Construction of the Sh200 billion High Falls Dam to boost food security in three arid counties is set to start after the National Irrigation Board was ordered to finalise the contract with a British firm.
The Public Procurement Administrative Review Board (PPARB) ruled that they cannot understand why the irrigation board refused to award the tender to the consortium of GBM Projects and ERG Insaat Ticaret had met all the contract specifications and offered to fund the project.
“The irrigation board’s actions in denying the firm the contract have the effect of eroding public and investor confidence and are not healthy to the country’s economic growth. Their decision to declare the company’s bid as unsuccessful was illegal, null and void,” ruled the PPARB.
PPARB members led by Chairman Paul Gicheru, Nelson Orgut, Rosemary Gituma and Hussein Were further ordered the irrigation to carry out the financial and technical evaluation of the British firm’s tender documents and sign the contract within 30 days.
They also extended validity of the tender process with two months to enable all parties to complete negotiation process.
According to PPARB, it was unlawful to deny the British company the contract for failing to provide the value for the contract security when they had not assessed the financial proposal which would have been used to measure the amount of security required.
“It was unreasonable to deny them the tender when it is clear from the contract specifications that the project would be funded by the company to build, own, operate and thereafter transfer ownership to the irrigation board upon recouping its investments,” ruled the board.
They added that the British company is the one that would be placed at a financial risk to recoup their investment if the project failed given that the irrigation board is not required to pump in any money during the construction.
They noted that the irrigation board in unlawfully frustrating conclusion of the procurement process through various actions including attempting to terminate the project in unclear circumstances.
This was the second order in a span of two months from PPARB directing the irrigation board to complete signing of the contract.
In July, the board gave the irrigation board 14 days to finalise the contract but they instead declined to award the British company on grounds that they failed to provide security and a financial proposal.
It was what made the consortium to file the second case where they accused the irrigation board of illegally denying it the contract for constructing the multi-billion shillings project in total disobeyance of the PPARB order.
The High Grand Falls Dam Project and Associated Irrigation Infrastructure is a government flagship projects of water harvesting and storage to increase food security in Kitui, Tana River and Garissa Counties.
It is expected to tap water from Tana River into the grand falls dam to support 200,000 acres of irrigation infrastructure, hydropower generation and domestic water supply.
