A Chinese firm has issued demands to the Kenya Airports Authority (KAA) to pay Ksh22 billion for the construction of the second terminal at the Jomo Kenyatta International Airport (JKIA).
China National Aero-technology International Engineering Corporation listed the demands after talks of extending the contract lapsed over a standoff between the Kenyan government and the firm.
However, the KAA board seeks to renegotiate the terms of the contract in order to ensure the completion of the Ksh56 billion project.
"The KAA board has approved negotiations of the contractor's claim and has constituted a team to do so, preparations on the talks are at the moment going on.
"The team is supported by external legal and technical experts. Preparations for negotiations are ongoing," a KAA board director stated.
The Chinese firm detailed the list of demands in order to arrive at the lump sum amount:
-Ksh2 billion for preparation of Bill of Quantities
-Ksh2.4 billion in extra costs
-Ksh708.2 million- value-added tax
-Ksh500 million- penalties for delayed payment
-Ksh5.6 billion- the balance of the contract for BOQ, VAT, and interest
Past reports indicated that the firm had been paid Ksh75 million for the completion of the first terminal at JKIA. The deal to extend the contract, however, went sour after the government alleged that no work had been done by the firm.
Further, former Attorney General Githu Muigai was roped into the standoff after he claimed that the contract awarded to the firm was void. Moreover, at the time, reports of the cost of the project being inflated surfaced.
This led to thorough investigations by the Ethics and Anti Corruption Commission (EACC) which later cleared the multi-billion project to proceed.
