Kenya’s state-owned National Oil Corporation of Kenya (Nock) and Indian Oil Corporation is among 14 companies battling for a major oil pipeline contract connecting Kenya with Uganda.
The companies have submitted their bids for the Sh26 billion Kenya–Uganda refined petroleum products pipeline project that will run from Eldoret to Kampala via Malaba.
Other companies that have submitted their bids are Capital Star Steel Limited, a consortium of South Africa’s Capital Africa Steel (Pty) and Seven Star Group of China, Punjloid Infrastructure Limited and Inpex Construction Limited of Japan, Eiffage SA of France and Consolidated Contractors Group, Oil India limited, and Kalpataru Power Transmission Limited, China Petroleum Pipeline Bureau, Turner and Townsend, Mota – Engil, and Engenharia e Construção of Portugal.
Oasis Consortium Group, Denys NV of Belgium, Alfaraa Jihind Consortium, Vitol SA of France, National Gas Company of Trinidad and Tobago, and Orascom Construction Industries of Egypt also bid for the contract.
Kenya and Uganda embarked on a fresh process to construct the pipeline after terminating a contract awarded to Libyan company, Tamoil East Africa Ltd.
Tamoil, a subsidiary of the Libyan African Investment Portfolio (LAIP), had won the contracts to construct the Eldoret-Kampala pipeline in 2006, and later in 2008 to extend it from Kampala to Kigali.
But the freezing of LAIP assets following the collapse Gaddafi’s regime generated a financial crisis for Tamoil, making it difficult for the company to carry out the project.
The pipeline will be developed as a public-private partnership under a 20-year build own operate and transfer arrangement.
The 352km pipeline will interconnect with the existing 14-inch diameter pipeline running from Nairobi to Eldoret and should be able to transport products across the two countries.
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