”Implementation of the two projects will involve utilization of USD 277,407,605.50 (KShs 27.7 billion) and USD 224,422,163.92 (KShs 22.4 billion) being the Contracts amounts for the Arror and Kimwarer projects respectively, from the loan funds; to be used for construction of the dams and the downstream developments for power, irrigation and water supplies systems. On the other hand, the GoK counterpart funds will be required for meeting costs of resettlement and compensation of Project Affected Persons (PAPs) together with project management (supervision and oversight) activities. As per the Contracts, implementation duration runs from 28th December 2017 to 27th December, 2022.
One of the conditions for the contractor to take over – is that they must receive advance payment from the project financier (with approval of the receiving government). Advance payments range from between 10-25% of project value. In this case, it was 15%. So far and as per the Contracts, the Contractor was paid Advance Payment of USD 41,611,140.83 in Dec 2017 and USD 33,663,324.59 in Nov 2018. The payment was to enable the contractor to do mobilization and designs as contained in the Conditions of the Contracts. Advance payment is a loan to the contractor that would be recovered from future certificates of work done. Other projects of similar nature implemented by the government of Kenya, and where advance payments were paid include:
Project:Karimenu II Dam Water Supply Project Cost:USD 235,918,461.00 Advance:USD 4,7183,692.20 (20%)
Project: Itare Dam Water Supply Project Cost:Kshs 28,973,739,492.00 Advance:Kshs 4,346,060,923.00 (20%)
Project:Thwake Multipurpose Dam Water Project Cost: Kshs 36,971,346,445.00 Advance: Kshs 7,394,269,289.00 (20%)
Project:Northern Collector Tunnel Project Cost:KShs 6,825,639,672.79 Advance:Kshs. 1,365,127,934.56 (20%)
Project:Kigoro Water Treatment Works Cost: KShs 962,085,797.00 and Cost:Euros 27,820,853.83 Advance: Euro 3,201,465.65 and Kshs 111,601,952.45 (20%)
Project:Raw Water and Treated Pipeline from Thika Dam to Kigoro and from Kigoro to Gigiri Cost:KShs 6,992,457,243.68 Advance: KShs 1,205,597,800.53 (20%)
Project:Kenya Towns Sustainable Water and Sanitation Program – various projects Various contracts (20%)
Even though in these other projects no work has commenced – some have taken 2-3 years to commence – similar or even higher amounts have been paid – yet none has attracted the kind of criticism and attack from the DCI or media like the Arror and Kimwarer projects.
Mr Speaker Sir, I suspect that this might be a case of “giving a dog a bad name then kill it.” Mr Speaker, is someone building a case for the termination of these projects? Why has the Arror and Kimware Projects attracted this kind of treatment yet the above stated projects underwent a similar process? Why has criminal investigations been commenced on a commercial contract which has its obligations spelt out in law and contract – even before the agreed timelines have lapsed (or close to lapsing)? How is this scandal warranting the negative attack and publicity? Why is it that every step of the investigation is shared with the media including social media? Is it a plan to ensure that the financier pulls out of this important project ?”Said the Elgeyo Marakwet Senator Kipchumba Murkomen.