The Public Investments Committee (PIC) has called upon directors of two international companies, China Petroleum Engineering Company and Zakhem International, who bid for the oil pipeline construction, from Mombasa to Nairobi, to appear before parliament.
China Petroleum Engineering is contesting against Zakhem which won the tender with the lowest bid of KES 43 billion from 12 other companies. They will both appear before parliament on Tuesday nextweek and October 1, 2014 respectively after failing to honour house summons.
PIC is currently investigating the award of the tender and has advised the government to stop the project until investigation is complete.
Kenya Pipeline Company is seeking to replace the existing 14-inch pipeline that has been operational for the past 36 years with a 450 kilometer oil pipeline from Mombasa to Nairobi.
Zakhem International, under consultancy of Shengli Engineering and Consulting Company is supposed to also construct a 20-inch diameter pipeline and a 96 core fibre optic cable along the right of way of KPC from Mombasa to Nairobi.
The oil pipeline is scheduled to run parallel to the planned Lamu Port South Sudan Ethiopia Transport (LAPSSET) project which involves construction of a pipeline from Lamu to South Sudan.