The Nairobi High Court has blocked the Government from entering into agreement with Gulf Energy, Centum consortium over KES 174 billion tender to construct a 1000MW coal power plant in Lamu. This decision was made following a petition issued by one the bidders that the whole process had irregularities.
The applicant, Hebei Construction Investment Group (HCIG) wants the Energy and Petroleum Ministry and its PS stopped from further processing of the September 1, 2014, award until petition filed before the Public Procurement Oversight Authority (PPOA) Petition Committee on September 9 is heard and determined.
The coal power plant tender, which is part of the Lamu Port South Sudan and Ethiopia Transport corridor (Lapsset) project, was termed as irregular and unfair to the bidders who had qualified in the initial stage of the process.
The Lamu coal power plant is central to attaining the country’s objective to increasing generation capacity and significantly reducing the cost of power. It will be the largest power generating plant in East, Central and Southern Africa accounting approximately 55% of Kenya’s power production.
This project will allow the Kenyan economy to compete globally in terms of investment, affordability and availability of power.