News

Courts uphold KenGen tender decision for geothermal wellhead contract

OLK02 wellhead plant of GEG at Olkaria in Kenya (source: Green Energy Geothermal)
Alexander Richter 20 Jan 2016

A court in Kenya today ruled that the challenge to the tender results for a geothermal wellhead power plant contract are valid and has dismissed claims of a company unsuccessful in the tender.

Reported today from Kenya, a court has upheld the results of a tender for geothermal wellhead power plants by KenGen.

The Shilling 52 billion($500 million) project to provide geothermal power generation units for Kenya Electricity Generating Company Ltd (KenGen) at the Olkaria plant will proceed as scheduled after the court dismissed an application by a losing firm which was challenging the award of the tender to its rival.

Mr Justice George Odunga ruled that the application by Russian company OJSC Power Machines Ltd, challenging the award of the Sh52 billion tender to RentCo East Africa Ltd, ought to have been filed as an appeal before the board and not taken to court.

The Public Procurement Administrative Review Board (PPARB) had told the court that the tender had three components of evaluation at the financial stage namely availability factor, Output MW, and low cost.

However, the Russian firm focused only on one aspect of evaluation, low cost while ignoring the other two components of the tender.

For further details see the piece by the Daily Nation, linked below.

Source: Daily Nation