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KPA picks 12 foreign firms for new Kipevu Oil Terminal project

Monday, 11 July 2016 | 10:00

Kenya Ports Authority has shortlisted 12 international firms for the Sh12.1 billion Kipevu Oil Terminal relocation project in Mombasa. The 12 were picked out of 31 firms from more than 15 countries that submitted the initial bids for the project advertised on March 23.

KPA opened the pre-qualification tender for the terminal’s construction works on May 17, where no local firm qualified. The 31 were drawn from England, South Africa, China, Japan, Australia, India, Dubai, USA, UAE, Spain, Netherlands and Portugal.

“We will give a window period of 14 days for those not satisfied to appeal before moving to the next stage,” KPA head of procurement and supplies Yobesh Oyaro told the Star on the phone yesterday.

“The next stage will involve detailed proposals and pricing for the work. Local firms did not qualify because they lack the expertise,” he said.

The tender for construction is expected to go out this month ahead of actual works early next year, with the project period pegged at 30 months, KPA corporate affairs department said. “We will give out the list once the shortlisted firms have been notified,” KPA communications officer Hajj Masemo said.

KPA plans to move the 50-year old Kipevu Terminal to a new site on the southern side of the port, opposite the current container terminal, a project that will expand the country’s oil handling and storage capacity by almost 400 per cent.

The modern oil terminal will have a capacity to accommodate four vessels of up to 200,000 deadweight tonnage. “Conceptualisation of the project arose from the ongoing port capacity expansion programme which has seen development of additional cargo handling facilities,” KPA said.

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 subsea and land-based pipelines connecting it to the storage facilities in Kipevu, and the capacity to handle five different fuel products.

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 (Sh171 million).
Source: The Star

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