Cancellation of Mombasa concessioning

Mismanagement of the second container terminal at the port of Mombasa is now said to be the key reason why Kenya Ports Authority MD Gichiri Ndua and four top managers have been sacked.
Kenya’s The Star reports that from August this year Kenya is due to start repaying Sh1.8 billion (US$18 million) every month to Japan for the Sh25 billion it borrowed to finance the construction of the new container terminal, yet a firm to run the terminal on concession has not been picked due to several cases lodged in court.
The contractor has completed the expansion, and is due to hand over the project to KPA on the 29th of this month. However, the KPA board chaired by Marsden Madoka this week announced that the tender to manage the terminal on concession has been cancelled.
“To ensure that increased capacity at the post is not constrained by litigation, the Board has directed the management of Kenya Ports Authority to immediately commence termination of the procurement process and thereafter to operationalise the second container terminal as an extension of the current port operations until further notice,” said a statement signed by Transport CS James Macharia.
Proliferation of contraband goods through the port was also cited as a reason why Ndua was sent on leave, ahead of the expiry of his contract in July, while four others were sent on early retirement. Macharia said the changes arose from a special meeting of the KPA Board of directors held on Monday.
He announced the drastic action at a joint press conference at Harambee House, Nairobi, with Interior Cabinet Secretary Joseph Nkaissery, KRA Commisioner-General John Njiraini and Inspector General of Police Joseph Boinnet. He said that general managers Twalib Khamis (Operations), Justus Nyarandi (Corporate Services) and Muthoni Gatere (Board and Legal Services) and Security boss Mohamed Morowa were sent on early retirement. Nyarandi was also the head of the Evaluation team for the berth concession. Also shown the door were the Mombasa Port OCPD and the county criminal investigations officer.
Disgruntled bidders for the second container terminal have filed several court cases, effectively blocking the project from proceeding. In December 2015 KPA invited companies to tender to operate the first phase of the two-berth terminal for 25 years. 19 companies bid and 12 were shortlisted, sparking off court cases by the losers.
“Construction of the terminal is almost complete and handover by the contractor is scheduled for 29 February,” said Macharia. “Lack of utilisation of the terminal once handed over will deny Kenya accrued benefits of additional capacity and revenues at the port of Mombasa.” — The Star

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