Contractor blames KPC for Sh50b new pipeline, says it may be a waste

KPC workers repair a broken pipeline which lead to diesel spillage at Kiboko area near Emali, Makueni County. This is part of the newly commissioned Sh50 billion Mombasa-Nairobi pipeline [File, Standard]

Revelations by the main contractor that the 450km Mombasa-Nairobi oil pipeline has serious design flaws and may corrode away sooner than later have jolted Kenya Pipeline Corporation (KPC) management to the core.

In a near admission that the line, which gobbled up Sh50 billion, may turn out to be a waste, Zakhem unleashed a torrent of accusations against the KenPipe Plaza management and board.

The Lebanese company, which has avoided public engagements on the pipeline controversies, ended its long silence on the matter -- thunderously.

“Long before commissioning, KPC were advised by Zakhem of serious design anomalies that could cause operation disruptions. KPC management and board took no notice,” Zakhem said.

“The Pipeline may not have been cleaned and injected with corrosion inhibitor appropriately to avoid premature internal corrosion.”

Apologised

In these two shockers of statements, Zakhem placed the blame for the mess that has become of the brand new line on KPC. They said all measures they proposed to protect the external and internal corrosion were ignored.

Earlier this year, the pipeline was rocked by an embarrassing case of leakage in Kiboko area of Makueni.

Acting Managing Director Hudson Andambi apologised profusely, but the matter is still raging in Parliament and on the ground.

“The matters contained in the contractor’s paid up advertisement are bound to raise public concern,” Andambi admitted yesterday of Zakhem’s claims.

Other sources at KenPipe blamed Zakhem’s outburst on an impending inline inspection of the project, which may turn the tables on the Lebanese company, complete with demands for payback of money advanced.

“They were paid to deliver a good pipeline, which can stand the test of time. Now they are engaging in pre-emptive strikes against what is inevitable if the terms of the contract are followed to the letter,” a source said.

Leak detection

In the Zakhem revelations, the matter of leak detection system sticks out like a sore thumb.

The company said KPC delayed in considering their advice to install the system. And when they eventually considered the matter, they immediately cancelled the installation. “The line has been commissioned and is in operation for over a year without leak detection system. This system would have deterred the reported attack on the line by thieves tunneling and puncturing it to steal product and cause leakages,” it said.

To attribute shoddy workmanship on these leaks and thefts, the company claimed, would be unfair because they are more of a security function.

According to Zakhem, from the beginning, the designs for the pipeline handed over to them at the beginning of the contract had serious “engineering errors”, which necessitated intensive reviews, variations and corrections.

Although the line was to be laid five metres parallel to existing one, the two ended up crossing on one another “at more than 15 locations.”

Zakhem claims it was only because of their “construction proficiency” that a major disaster did not occur during the excavation process.

Other shocking revelations by Zakhem include the bizarre location of a new fire-fighting system on top of an existing fire-fighting system, prolonged periods of delay and other operational bottlenecks.

Public spat

But in its rejoinder yesterday, the KPC stuck to its script that it would not be drawn into a public spat with Zakhem on contractual matters.

“Some of the matters raised in the contractor’s paid up advertisement are also currently subjects of active inquiries by investigative and/or legislative entities,” it said.

The acting MD said it would be both improper and imprudent for “KPC to engage in ad hoc and hasty or ill-considered commentaries on what are weighty issues of great public concern.”

In the very end, Andambi signed up with what could turn out to be a hollow promise, given the enormity of the contractor’s claims: “We wish to assure the public that we are fully engaged in ensuring that Line 5 delivers on its promise, and that as we go about this, we will keep Kenyans properly and fully informed. We urge all parties involved in Line 5 to adopt a similar approach.”