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Twelve Firms in Sh12bn Kipevu Oil Terminal Bid

Posted on August 8, 2016

By Martin Mwita, The Star

Kenya Ports Authority has started assessing the “financial capacity and technical know-how” of interested companies for the lucrative Sh12.1 billion proposed relocation of Kipevu Oil Terminal ahead of planned commissioning next January.

The KPA management has narrowed down to 12 international firms from the 31 that had submitted their bids, head of procurement and supplies Yobesh Oyaro told the Star on phone. “We have notified the companies that have been short-listed,” he said.

The short-listed companies for the planned offshore jetty at the Port of Mombasa are China Gezhouuba Group, Sinopec International Petroleum Service Corporation, Boskalis Dredging & Marine Experts, CPECC & Power China JV, China CAMC Engineering and Besix, CMR & Van Oord.

Others are China Railway Construction Corporation, China State Construction Engineering Corporation, SAIPEM AFCONS Infrastructures, Jan De Nul, China Communications Construction Company and Dredging International.

“We are now preparing the tender documents. We should have someone by the end of the year ahead of construction early next year,” KPA head of corporate Affairs Bernard Osero said.

Construction of the new jetty, which will have a bigger capacity,will take about 30 months, according to KPA, a project that will see the current 50-year-old Kipevu Terminal relocated to a new site on the southern side of the port, opposite the current container terminal.

The project will expand the country’s oil handling and storage capacity by almost 400 per cent, with the new terminal having a capacity to accommodate four vessels of up to 200,000 deadweight tonnage.

KPA opened the pre-qualification tender for the terminal’s construction works on May 17, where no local firm qualified. Decommissioning of the existing KOT will create room for the construction of phase two of the second container terminal.

“The new KOT will have both sub-sea and land-based pipelines connecting it to the storage facilities in Kipevu,” KPA said in a separate statement.

These are crude oil, heavy fuel oil and three types of white oil products (DPK-aviation fuel, AGO-Diesel and PMS-Petrol). Danish engineering firm Niras was in 2014 tasked with designing the new facility at a cost of $1.7 million (Sh172.3 million).

Source: The Star

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