“Above the market prices” – European Union Withdraws Tender For Kenya After An Exaggerated Quote

“Above the market prices” – European Union Withdraws Tender For Kenya After An Exaggerated Quote

On Tuesday, the European Union stated that it was rejecting a Kenyan tender because bidders cited costs higher than the market. 

Interested bidders were asked to submit contract documents for the building of subterranean, high, and low-level water tanks, septic tanks, sewer systems, public restrooms, cold rooms, hazardous rooms, and transhipment sheds at Kenya’s Moyale Border Post. 

The project was supposed to be funded by EDF in collaboration with the Common Market for Eastern and Southern Africa (COMESA) and overseen by the Ministry of Investment, Trade, and Industry.  

Regarding the cancellation of the tender, it was stated that EDF did not consider value for money in investing in the program.

During the tender’s flotation, it was announced that bidders would be subjected to Local Competitive Procurement using Request for Bids (RFB) criteria specified in the EDF and COMESA rules.

The tender was divided into four lots, the first of which dealt with the design and building of subterranean, high- and low-level water tanks, as well as a pump house at Moyale Border Post. 

Lot 2 was the design and construction of toilets and the restoration of the sewer system at Moyale Border Post, while Lot 3 was the design and construction of the cold room and hazardous goods room. 

Finally, the tender included the design and construction of a transhipment shed. 

The EU has now canceled the first lot and made amendments to the other lots due to exaggerated offer pricing. 

“The lot is not awarded because there were no financially worthwhile tenders as the prices offered were significantly above the market prices and did not represent value for money,” EU stated. 

“Should a new tender procedure be launched for this project, a new contract notice will be published, unless the contracting authority awards the contract through a negotiated procedure in which case only the award of the contract will be published.”

Lot 2 was altered by canceling the design and construction of the cool room while keeping the design and construction of the hazardous goods room.

“Above the market prices” – European Union Withdraws Tender For Kenya After An Exaggerated Quote