Taxpayers to ‘lose Sh3bn’ in controversial Thwake dam deal

Irrigation Principal Secretary Patrick Nduati Mwangi has defied his boss Eugene Wamalwa and gone ahead to award a controversial dam construction tender to a Chinese firm that could see taxpayers lose more than Sh3 billion.

Mr Mwangi has awarded the Sh62.3 billion Thwake dam contract to the second lowest evaluated bidder- STECOL Corporation (Sino Hydro Tianjin Engineering Co Ltd and proceeded to inform the lowest bidder-China Gezhouba Construction Group Corporation (CGGC) that its bid was unsuccessful.

China Gezhouba won the Tender Processing Evaluation Committee (TPC) stage after putting in a bid of Sh36.9 billion for the first phase of the multi-billion shilling dam.

But the Ministerial Tender Committee (MTC), appointed by Mr Mwangi went ahead and awarded the contract to (Sino Hydro) at a cost of Sh39.5 billion.

READ: Wamalwa washes hands off controversial dam

“In line with the Public Procurement and Disposal Act, 2005, Section 83(1), you are notified that your bid for construction of Thwake Multi-Purpose Water Development Programme Phase I has been successfully…subject to successful negotiation to the lowest bidder price of Sh36,971,346,444,” Mr Mwangi said in a letter to Sino-Hydro dated Monday 27, 2017.


He informed the bidder that the tender will also be subject to confirmation by the Treasury of availability of the money and clearance of award by Attorney General Githu Muigai.

Mr Wamalwa and Mr Mwangi have been at loggerheads over the award of the tender that the two Chinese firms—CGGC and Sino Hydro—have been battling for.

Picking the winner of the contract has sparked a vicious war between the two officials.

Mr Wamalwa last week warned Mr Mwangi that he would be held personally responsible if his decision to award the tender will result in an extra cost of Sh3 billion from the lowest evaluated bidder.

Mr Mwangi had earlier told MPs that he would back the decision of the MTC saying China Gezhouba is alleged to have been blacklisted by the AfDB and the World Bank for “integrity issues.”

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