New tendering process for Mombasa-Nairobi pipeline

Under unclear circumstances over what happened to the initial tender, the Kenya Pipeline Company (KPC) has embarked on a fresh tendering process for replacement of the aged Mombasa-Nairobi pipeline.

The 100% government-run corporation has re-advertised the international tender for a consultant to design and supervise the construction of a new pipeline to replace the 449 km long Mombasa-Nairobi pipeline, which has been in operation since 1978.

The initial tender procedure closed on 22^nd November last year. KPC Managing Director Selest Kilinda declined to give further details on the reasons for the repeat of the process. "Re-tendering can be done for many reasons and [I] am not obliged to disclose the reasons to you," Kilinda told the media.

According to a procurement expert, the reasons for re-tendering could range from fraudulent activities during the process, a mistake in the specifications the first time or change in the scope of services. Other reasons could also be that no one passed the first time or none of the bidders accepted the winning price.

There is typically a validity period of 90 days for a tender, to leave sufficient amount of time for it to be evaluated and awarded. "The process of replacing the pipeline has begun and plans to engage a consultant to carry out engineering designs, environmental impact assessment tests and preparation of tender documents are at an advanced stage," said KPC in another section of the media.

The new pipeline expected to serve until the year 2044 will, according to Energy Permanent Secretary Patrick Nyoike, cost about US$ 300 million. The current, 34 year old pipeline has seen its capacity diminish over time. Presently, KPC pumps around 450 m³/hr of petroleum between Mombasa and Nairobi against an estimated demand of 700 m³/hr and 220 m³/hr between Nairobi and western Kenya against an expectation of 400 m³/hr.

The monthly fuel demand for both Kenya and Uganda is estimated to be 500 million l, significantly higher that the pipeline’s 324 million l. The shortfall has to be delivered through road, private depots or rail, which is expensive resulting in high prices at the retail pumps. "The net effect will be less transportation of petroleum products by road which will significantly reduce congestion and damage to roads," concluded KPC.

Read the article online at: https://www.worldpipelines.com/business-news/24022012/new_tendering_process_for_mombasa-nairobi_pipeline/