A consortium of Chinese firms that won a tender for the construction of a mega dam in Turkana despite quoting Sh11 billion more than lowest bidder has moved to the High court to fight the cancellation of the lucrative deal.
The three firms quoted Sh29 billion for the building of Lowaat dam and were awarded the contract but China International Water and Electric Corp, which was the lowest bidder at Sh17.9 billion successfully petitioned the Public Procurement Administrative Review Board (PPARB) to cancel the award.
The consortium is made up of Sinotec Limited, Toddy Civil Engineering Limited and Zhejiang Provisional No.1 Water Conservancy & Electric Power Construction Group Holdings.
The PPARB on June 11 directed the procuring entity, the National Irrigation Board (NIB), to re-evaluate the tender.
“The applicants are reasonably apprehensive that the 2nd respondent (NIB) will proceed to enter into a contract with the interested party on the basis of re-evaluation process founded on an unlawful, null and void decision of the 1st respondent unless this honorable court intervenes,” the three firms says in court documents.
The firms argue that the request for review was filed outside the period allowed by law and claims that PPARB erred.
But PPARB dismissed this noting that no evidence was produced to show that China International was notified of the award to its rival.
PPARB further faulted NIB tender committee for recalculating and increasing the amount quoted by China International, which it says is in breach of the law.
The board further noted that the minimum requirement for the technical evaluation score is 72 per cent, which all bidders met.
The consortium says that it applied for the tender and were shortlisted alongside five other bidder in 2016 and were given until February 2017 to submit their proposals.
Three firms submitted the proposals with the consortium quoting Sh29.8 billion, China International quoted Sh18.1 billion and the third firm Cooperativa Muratori & Cementisti CMC Di Ravena Sh35.2 billion.
In October 2017, NIB awarded the consortium the tender on the ground that it submitted a tender with the highest combined technical and financial evaluation.