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"id": 306099,
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"content": "procurement process of the proposed Greenfield Terminal and commence the process of seeking Cabinet approval for the same through a Cabinet Memorandum. Mr. Speaker, Sir, in disregard of the letter from the Office of the Prime Minister, the tendering went on, and the bid evaluation was hurriedly concluded on 14th December, 2011. A tender committee meeting was held on 15th December, 2011, and a notification of award sent out on 16th December, 2011, even before the Minutes of the Tender Committee had been confirmed. Surprisingly, the Chinese firm that was supposed to have been communicated to received the notification in China, considered it, accepted the award and sent a letter on 19th December, 2011, which was received in Kenya on the same day. On learning of this development, the Ministry sought clarification and re-emphasised the need not to commit the KAA on the project until the Cabinet is briefed. This was communicated by the Permanent Secretary (PS) on 10th January, 2012 and, subsequently, on 10th February, 2012. The matter is still being processed through the Cabinet structures. Mr. Speaker, Sir, I will table the three letters that have been referred to in the Media and everywhere else for hon. Members to see their contents and where the purported cancellation has been addressed. In its meeting of 21st February, 2012, the KAA Board sought for and received information on the notification of tender award for the first time. The Board considered the issues surrounding the process of the tender, noted discrepancies in the tender process and resolved that the KAA Management should terminate the procurement process. The Board also noted that the project cost had moved from the estimated maximum of US$500 million to a new figure of US$653,782,814.57, despite the fact that no approval had been sought from the Board. Mr. Speaker, Sir, the notification of award that had been sent out was conditional to successful negotiations and signing of a loan agreement with the project financier. Therefore, so far, there is no agreement that has been entered into between the KAA and M/s Anhui Construction Engineering Group Company Limited. Since there exists no signed contract, we do not anticipate the Government to incur any monetary loss as a result of the purported cancellation of the tender. Indeed, Section 68(3) of the Public Procurement and Disposal Act, 2005, which was passed by this Parliament, states as follows:- “68(3) No contract is formed between the person submitting the successful tender and the procuring entity until the written contract is entered into.” Mr. Speaker, Sir, I have no personal interest in this matter, except to ensure that public funds under my oversight are safeguarded and Kenyans obtain value for money. Thank you."
}