Chinese contractors — Anhui Construction Engineering Group Ltd (ACEG), in a joint venture with China Aero-Technology International Engineering Corporation (CATIC) — is seeking more than Sh17 billion in damages from the government over its botched execution of contracts to build a new terminal at Jomo Kenyatta International Airport (JKIA).
Details emerging indicate that although the firm had already received Sh4.2 billion and no work done on the new terminal, Kenyans will have to fork out billions in compensation.
The Kenya Airports Authority (KAA) scrapped plans for a new terminal building at JKIA, whose construction President Uhuru Kenyatta launched in December 2013, due to financial pressures and excess capacity caused by recent upgrades to existing facilities.
Catic had been selected to build the Sh56 billion terminal, which was expected to handle 20 million passengers a year, and the cancellation signalling a legal battle over compensation.
“We have almost reached a mutual agreement in our discussions, which will save taxpayers a lot of money, the negotiations have been good so far,” said Mr Macharia.
The contractors — Anhui Construction Engineering Group Ltd (ACEG), in a joint venture with China Aero-Technology International Engineering Corporation (CATIC) — are demanding Sh17 billion in compensation for the cancellation of their contract.
The money is the cumulative amount as of November 2017, but the figure is much higher now. The Sh64 billion Greenfield contract was terminated in March 2016.
Kenya Airports Authority (KAA) executives, led by Managing Director Jonny Andersen, on Thursday told the National Assembly’s Public Investment Committee that they will not pay.