Multimillion Nairobi-Nakuru highway PPP facing legal battle

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Multimillion Nairobi-Nakuru highway PPP facing legal battle

The Kenya National Highways Authority (KeNHA) has selected the Rift Valley Connect (RVC) consortium - comprising Vinci Highways SAS, Meridian Infrastructure Africa Fund and Vinci Concessions SAS - as the preferred bidder for the Nairobi-Nakuru-Mau Summit Highway PPP project, amidst disputes on the project award process.

The other finalist consortium - African Infrastructure Investment Fund 3 Partnership, Egis Projects S.A, Mota-Engil-Engenharia E Construcao Africa, S.A and Orascom Construction- has appealed the decision of the Kenya National Highways Authority (KeNHA), claiming that the award process of the tender was fraudulent and not transparent. It also claims that Kenha, as the contracting agency, did not provide reasons on why the consortium was not picked as the preferred bidder. 

RVC consortium submitted the lowest bid at KES159.5 billion (US$1.6 billion), while Mota-Engil quoted KES194.9 billion (US$1.9 billion). However, according to sources, RVC’s financial proposal understated the income tax obligations to the government by more than KES30 billion (US$300 million).

As we reported in early March, the two consortia were the only two submitting final bids for the project, which involves the widening of 175 km of the A8 highway between Rironi and Mau Summit to four lanes, operation and maintenance of 12.43 km of the highway between Gitaru and Rironi and 28.6 km of Nairobi Southern Bypass, and the installation of toll collection booths along the highway. 

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