Members of Parliament are probing a flawed power tender that saw the government lose Ksh18 billion for delays in the completion of Loiyangalani - Suswa transmission power lines.
During the National Assembly’s Public Investment Committee (PIC) meeting held on Thursday, February 17, it was revealed that the government was penalised by Lake Turkana Wind Power (LTWP) over a delay in the completion of the power lines.
Upon its completion, LTWP agreed with Kenya Power and Lighting Company (KPLC) to transmit power generated from the Turkana project into the national grid.
However, as part of the agreement, KPLC mandated LTWP to procure a contractor to build transmission lines. Additionally, TLWP was to penalise the government if the contractor failed to finish the construction of the transmission lines on time.
The MPs noted that the condition set by TWLP was a conflict of interest as they were the ones who sourced for the contractor to undertake the project.
This was confirmed by the Kenya Electricity Transmission Company (KETRACO) acting Chief Executive Officer (CEO) who stated that the deal was flawed due to the conflict of interest by LTWP.
“I have a problem with the fact that LTWP, which played a role in selecting the contractor had a Power Purchase Agreement (PPA) with Kenya Power stating that in the event the project experienced delays beyond the agreed completion date, there is a penalty,” he stated.
Members of Parliament led by PIC chair and Mvita MP, Abdulswamad Nassir, also questioned why KETRACO was not involved in the process, yet it was the body that is mandated to undertake such projects.
Nassir questioned why a Spanish company got the tender despite lacking the technical ability to do so.
“Why did LTWP settle on Isolux Ingenieria SA yet a technical report on valuation placed a Spanish company Elecnor as having more technical capability to build the line?” Nassir asked.
“Why was KETRACO not involved in the entire process yet it is the body that deals with power evacuation?” he questioned.
The committee is expected to summon other government officials in the following weeks even as they continue with their investigations.
