Here is the Hansard report
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[li][SIZE=5]ENGAGEMENT OF CONSULTANTS FOR FEASIBILITY STUDY ON PROPOSED LAMU PORT[/SIZE][/li][li]Page 31 of Hansard 07.06.11[/li][li]Amos Kimunya (The Minister for Transport) [/li]Mr. Temporary Deputy Speaker, Sir, I wish to make the following statements on the methods used to engage consultants for Lamu Port and LamuâSouthern Sudan-Ethiopia Transport Corridor, as requested by hon. Eng. Gumbo.
[li]Amos Kimunya (The Minister for Transport) [/li]Mr. Temporary Deputy Speaker, Sir, hon. Eng. Gumbo rose on a point of order to seek a Ministerial Statement on how the consultants conducted feasibility study for the Lamu Port and Lamu-Southern Sudan- Ethiopia Transport Corridor were engaged. He sought the following explanations on how the Japan Port Consultants were awarded the multi billion shilling consultancy, to clarify whether an expression of interest and request for proposal were sent out, and when it was sent out, and how many firms were invited, to provide detail bids on all firms, the RSP in terms of financial bids and technical bids, to provide a copy of the evaluation report, to provide detailed curriculum vitae of all the individuals in the respective firms that placed bids for this contract, and to confirm that provision of the Public Procurement and Disposal Act, No.3 of 2005 and the Public Procurement and Disposal Act regulations of 2006, had been complied with.
[li]Amos Kimunya (The Minister for Transport) [/li]Mr. Temporary Deputy Speaker, Sir, I wish to state as follows. The procurement of the Japan Port Consultants was done through a competitive tendering process in two stages, namely, an expression of interest at stage one and issuance of Requests For Proposals (RFP) to the shortlisted firms at stage two. The expression of interest for Lamu Port and Lamu- Southern Sudan- Ethiopian Transit Corridor Consultancy was advertised in the print media, on 6th April, 2009, and 30 expressions of interestâs bids for the consultancy were received on 18th May, 2009. A copy of the Expression of Interest advertisement is tabled as Appendix I.
[li](Mr. Kimunya laid the document on the Table)[/li][li]Amos Kimunya (The Minister for Transport) [/li]The evaluation of the EOI bids for the 30 firms was carried from 29th of June, to 3rd July, 2009, and the Evaluation Committee shortlisted eight firms to undertake the feasibility study and to prepare the preliminary designs, prepare Lamu Port Masterplan detail design together with tender documents. The technical evaluation report and EOI, a pre deal conference and technical evaluation report for the six firms are tabled as Appendices two to four.
[li](Mr. Kimunya laid the document on the Table)[/li][li]Amos Kimunya (The Minister for Transport) [/li]Mr. Temporary Deputy Speaker, Sir, in August, 2009, the Ministry sent out the Request for Proposals to the eight shortlisted firms, and I have already tabled that. Out of the eight shortlisted firms, only six submitted technical and financial proposals in separate sealed envelopes on 17th November, 2009. Separate envelopes means a technical envelope and a financial envelope. The evaluation of the technical bids was done and only two firms namely, M/s Japan Port Consultant and Royal Haskoning Netherlands obtained the minimum technical score of 80 percent. Accordingly, the financial bids of the four firms, which did not obtain the minimum technical score of 80 percent, were returned unopened, and this is all contained within the evaluation report.
[li]Amos Kimunya (The Minister for Transport) [/li]Mr. Temporary Deputy Speaker, Sir, Japan Port Consultant and Royal Haskoning, Netherlands scored 91 percent and 82 per cent, respectively. The financial bids for Japan
[li]Page 32 of Hansard 07.06.11[/li][li]Amos Kimunya (The Minister for Transport) [/li]Port Consultant which attained the highest score, was then opened and the firm was invited for negotiations. Japan Consultants accepted the offer after the negotiations were concluded. Consequently, the bid for Royal Haskoning, Netherlands was returned unopened in accordance with the procurement instruction within the RFP. A copy of that offer letter to Japan Port Consultant is also tabled herewith.
[li](Mr. Kimunya laid the document on the Table)[/li][li]Amos Kimunya (The Minister for Transport) [/li]The original contract sum for Japan Port Consultant was Kshs3.04 billion. On 21st September, 2001, and I believe it is contained in the notification of awards letter, which I also tabled as Appendix 6.
[li]Amos Kimunya (The Minister for Transport) [/li]On 21st September, 2010, I wrote to the Treasury raising concerns over the pricing of the contract and requested the Treasury as the chief advisor to the Government procurement to determine whether the unit rates of the contract represented good value to the taxpayer, and whether the contract ought to proceed in that form.
[li]Amos Kimunya (The Minister for Transport) [/li]Consequently, on the 5th of November, 2010, a consultative meeting was held between Treasury, Ministry of Transport, State Law Office and Public Procurement and Oversight Authority. During the meeting, Treasury was requested to assess the financial implication if the contract was to be terminated.
[li]Amos Kimunya (The Minister for Transport) [/li]After the assessment and re-evaluation of the contract, it was found prudent to renegotiate and restructure in a view to have the units rates addressed to reflect reality. The restructuring and renegotiations resulted in reduction in the lumpsum contract from Kshs3.04 billion to Kshs1.98 billion. There should be a letter within this document showing the revisions.
[li]Amos Kimunya (The Minister for Transport) [/li]The other issue that was requested is how up to date, the total amount that has been paid is Kshs500 million, which was paid during the last financial year, while a further Kshs500 million is provided for in the Supplementary Estimates. But this has not been paid out yet.
[li]Amos Kimunya (The Minister for Transport) [/li]The applicable staff rates for the lumpsum contract including the list of staff and the curriculum vitae of all the staff are attached. We have the rates as Appendix 7. All the rates are here, plus all the CVs of the professionals, who are involved also tabled as one batch.
[li](Mr. Kimunya laid the document on the Table)[/li][li]Amos Kimunya (The Minister for Transport) [/li]Mr. Temporary Deputy Speaker, Sir, finally, from the information availed to me, it indicates that public procurement procedures were adhered to as understood by the Ministry. I also want to add for clarification that we could only provide CVs and financial bids for only the successful firm because everything else was returned, and opened in accordance with the regulations.
[li]Nicholas Gumbo [/li]Mr. Temporary Deputy Speaker, Sir, I want to thank the Minister for the speed with which he has responded to this Ministerial Statement.
[li]Page 33 of Hansard 07.06.11[/li][li]Nicholas Gumbo [/li]He clearly understands the importance of this Statement. The Lamu Port and their putnances thereof, is one of the key flagship projects for Vision 2030. It is a national project. It is a very important project.
[li]Nicholas Gumbo [/li]Mr. Temporary Deputy Speaker, Sir, I wish to seek your indulgence on this matter, because a lot of the things that I want to interrogate are actually in those documents. But even as I do that, I am sure some of my colleagues may also be interested----
[li]Gitobu Imanyara (The Temporary Deputy Speaker) [/li]Order! If the request is for time, the Chair would grant that. As you notice, we have not even gone into the commencement of the business of the House. So, if that is the request you are making, please, make it now.
[li]Nicholas Gumbo [/li]Mr. Temporary Deputy Speaker, Sir, I kindly request for your indulgence, because I know this is a project that is of national interest. I need to interrogate the documents laid before us. I need to share it with my colleagues. I would request the Chair to allow me to go through the documents so that we can interrogate this matter.
[li]Gitobu Imanyara (The Temporary Deputy Speaker) [/li]How long do you require?
[li]Nicholas Gumbo [/li]Mr. Temporary Deputy Speaker, Sir, I would request that I be given up to Thursday afternoon, so that the Minister can respond to the clarification.
[li]Gitobu Imanyara (The Temporary Deputy Speaker) [/li]Minister, any comment on that?
[li]Amos Kimunya (The Minister for Transport) [/li]Obviously, I do not expect the hon. Member to look at all these documents, which he requested in a couple of minutes. I have no objection to whenever he will be comfortable after looking at them, be it this week or next week.
[li]Gitobu Imanyara (The Temporary Deputy Speaker) [/li]Next week, on Tuesday.
[li]Amos Kimunya (The Minister for Transport) [/li]I am most obliged, Mr. Temporary Deputy Speaker, Sir.
[li]Gitobu Imanyara (The Temporary Deputy Speaker) [/li]Yes, Minister for Medical Services.
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