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AfDB to probe Kenya’s Last Mile Connectivity Project
KENYA
THE African Development Bank (AfDB) is to carry out a full audit of Kenya’s Last Mile Con- nectivity Project after the scheme was hit by accusations of fraud that resulted in China’s Sino- tec being banned from further AfDB projects.
The bank said it will now conduct an audit of the first phase of the Last Mile Connectivity Project, which aims to link Kenyan homes to the national grid under a subsidised programme.
The bank has now issued a tender for audit services for the project and wants such a tender to act as a model for future power projects in Kenya.
“The independent development evaluation function (IDEV) of the African Development Bank Group invites individual consultants to indicate their interest for the impact evaluation of the Last Mile Connectivity Project in Kenya,” said the bank in a tender notice.
“The evaluation will focus on the bank- funded Last Mile Connectivity Project, approved in 2014 and scheduled to close in 2020.”
The AfDB audit comes after Sinotec was banned after it emerged that it had been awarded a contract by state-owned utility Kenya Power for the second phase of the Last Mile Project.
The AfDB said Sinotec, a power transmission
and distribution equipment firm, had misrep- resented its experience to meet qualification requirements for several AfDB-funded projects.
In 2018 Kenya Power contracted Sinotec to design, supply and install 3,000 km of low-volt- age single-phase lines and supply cables in Kisumu, western Kenya and Mount Kenya regions.
The AfDB said its new audit aims to provide credible evidence-based information on the impact of the AfDB-funded Last Mile Connec- tivity Project.
Put simply, this means that it wants to combat fraud and to ensure that money is used honestly and effectively.
“The overall objective of the evaluation is to inform the mid-term review of the bank group’s strategy for the New Deal on Energy for Africa (2016-2025) by identifying lessons and potential areas for improvement,” it said.
“The specific evaluation objectives are to assess to what extent reliable and new access to electricity has been achieved by the project (and) assess to what extent productive use of energy, especially small businesses, has been accom- plished by the project.”™
INDUSTRY
Egypt’s SIDPEC to move forward with $1.2bn polymer project
EGYPT
EGYPT’S Sidi Kerir Petrochemicals (SIDPEC) plans to push ahead with the development of a $1.2bn propylene and polypropylene project, despite the market uncertainty, Zawya reported on April 30.
The company took the decision to go ahead with the plan at its ordinary general meeting, the news agency reported. Management has already selected the US’ Honeywell UOP and Grace as technology providers for the project. But no updates have been announced regarding the choice of a main contractor.
SIDPEC held a tender for the engineering procurement and construction (EPC) contract last year. NewsBase understands that bids were prepared by South Korea’s Samsung Engineer- ing, Italy’s Saipem and Chinese firms Huan- qiu Contracting & Engineering (HQC) and China Petroleum Engineering & Construction
(CPECC). However, no contract was awarded and another contest took place this year.
The project’s equity portion – reportedly 30% – is expected to be funded with a capital increase, according to regional brokerage Naeem Research. The remaining 70% will be raised through debt. Egypt’s NI Capital has already been appointed as the financial advisor.
SIDPEC launched feasibility studies for the project in 2018, initially aiming to start produc- tion in 2020. The new plant is expected to pro- duce 500,000 tonnes per year of propylene and 450,000 tpy of polypropylene.
That year SIDPEC, Egypt’s largest petro- chemicals producer, also signed the licence con- tracts with Honeywell and Grace, as well as a deal with Egyptian Natural Gas Co. (GASCO) for the supply of feedstock. It went on to acquire a land plot for the plant last year.™
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w w w . N E W S B A S E . c o m Week 19 14•May•2020