KTDA's electricity project halted as firms jostle for tender
Geothermal Development Company engineers monitor activities at the Menengai geothermal field in Nakuru on November 10, 2014. PHOTO | SULEIMAN MBATIAH | NATION MEDIA GROUP
What you need to know:
- Justice Sergon noted that KTDA had already awarded the tender on the three projects to Boom Systems and VS-Hydro.
- The highly contested projects are Chemosit (2.5 megawatts), Kipsonoi (3.6MW) and Rupingazi (1.8 MW).
A court has temporarily stopped a tea marketing firm from awarding a controversial Sh3.5 billion contract for a electric power project.
The Kenya Tea Development Agency (Holdings) Ltd and its subsidiary, KTDA Power Company Ltd, are implementing hydropower projects on three rivers in Kericho, Bomet and Embu counties to generate electricity for their consumption and sell the excess to Kenya Power.
High Court judge Joseph Sergon however ruled that the case filed by Hydropower International (PVI) Ltd will serve no purpose if the tender is awarded because the firm claims it was short-changed.
Lawyer Philip Nyachoti, for Hydropower International, said Boom Systems (PVI) Ltd should not have been awarded the tender because its partner, VS–Hydro (PVI) Ltd, was introduced after the tender had been closed.
Boom Systems had terminated its partnership with Hadish Engineering Company Ltd and replaced it with VS–Hydro.
Justice Sergon noted that KTDA had already awarded the tender on the three projects to Boom Systems and VS-Hydro.
The highly contested projects are Chemosit (2.5 megawatts), Kipsonoi (3.6MW) and Rupingazi (1.8 MW).
They are small hydropower projects located on Chemosit, Kipsonoi and Rupingazi rivers.
According to KTDA Holdings and KTDA Power, “the projects will generate revenue to us and, in turn, benefit the tea farmers, who are the ultimate owners of KTDA (Holdings) Ltd through the respective tea factories”.
