Big blow as Turkish company demands Sh200m more to build ferry

A ferry crossing from Likoni mainland to the Mombasa ramp. Construction of MV Safari has been delayed by a court case. [File, Standard]

Mombasa residents will have to wait longer for a new ferry to be delivered after a Turkish firm contracted to build the vessel demanded Sh200 million more to complete the work.

Ozata Shipyard had already been paid Sh1 billion, but is demanding the extra money to cover the delays occasioned by lengthy litigation between the Kenya Ferry Services (KFS) and a local ship inspection firm. The company delayed the construction of the vessel for about 10 months.

The dispute over the additional costs has dashed the hopes thousands of residents who have been awaiting for the delivery of MV Safari, which was expected to ease perennial delays at the Likoni channel. The vessel was expected next month.

KFS Managing Director Bakari Gowa said the firm was in talks with the Turkish company to have the vessel delivered.

“The firm has demanded additional money from us, citing delays caused by the court case, but we are in talks,” Mr Gowa said.

Sources said the only works remaining to complete the vessel were fixing the engine and other operational equipment.

KFS contracted Ozata Shipyard to build and deliver MV Jambo and MV Safari about three years ago at a cost of Sh2 billion.

However, Bonrize Insurance Marine Surveyors went to court to challenge the safety of the vessels.

Unseaworthy

 Bonrize claimed that the vessels had defects and were, therefore, unseaworthy. KFS had terminated the contract of Bonrize to inspect the vessels, claiming it had no skills to do the job.

In August last year, High Court judge Eric Ogala stopped the construction of the ferry pending the hearing and determination of the petition by Bonrize Insurance Marine Surveyors.

However in April this year the High Court decision was quashed by Appeal Court judges Alnashir Visram, Wanjiru Karanja and Martha Koome.

The judges allowed KFS, through Turkey Shipyard, to proceed with the construction of MV Safari.

KFS lawyer Nani Mungai argued that the speculation over the defects and safety of the new vessel were unwarranted as a lot of funds were used to build the ferry.

The judges ruled that it was illogical to stop the building of the ferry because their suitability would be tested on completion.

“The injunction was on a ferry whose construction had not even started. We hold the view that such an order was incorrect as the act was to forestall what had not even started,” the judges said.