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Court stops tea agency’s Sh3.5bn power plan deal

The Kenya Tea Development Agency (Holdings) Ltd has suffered a major setback after it was stopped from proceeding to award a Sh3.5 billion power project tender until the dispute surrounding it is resolved.

KTDA (Holdings) Ltd and its subsidiary KTDA Power Company Ltd are implementing hydropower projects in three rivers located in Kericho, Bomet and Embu counties to produce electricity for their consumption and any excess to be sold to Kenya Power.

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High Court Judge Joseph Sergon ruled that the case filed by Hydropower International (PVI) Ltd, will serve no purpose if the tender award is allowed to proceed when the claim by the firm that it was short changed has not been determined.

Boom Systems (PVI) Ltd had terminated its partnership with Hadish Engineering Company Ltd, and replaced it with VS–Hydro (PVI) Ltd.

In the application, Hydropower International (PVI) through lawyer Philip Nyachoti claimed that Boom Systems should not have been awarded the tender because its partner VS–Hydro (PVI) Ltd, was introduced after the tender process had been closed.

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“The substratum of the case will collapse if the order of injunction is not given since KTDA, which has already awarded the tender on the three projects to Boon Systems (PVI) Ltd and VS Hydro (PVI) Ltd will immediately execute the tender contracts thus extinguishing Hydropower International (PVI) Ltd’s claim and as a result, render the suit nugatory,” Justice Sergon.

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The contested power project are, Chemosit (2.5MW), Kipsonoi (3.6MW) and Rupingazi (1.8 MW) Small Hydropower Projects located on Rivers Chemosit, Kipsonoi and Rupingazi.

KTDA had argued that the court lacks jurisdiction to determine the dispute because the tender process in question is a procurement by a private entity, and that the Public Procurement and Disposal Act 2015, does not apply to it.

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