Economy

How a Flash Disk Mistake Cost China Firm Ksh.29 Billion Railway Contract

One of these rivals, China Civil Engineering Construction Corporation (CCECC), had quoted about Ksh.22.98 billion, which is Ksh.6.55 billion less than CRBC’s bid.

A simple mistake involving flash disks has led to the Chinese firm China Road and Bridge Corporation (CRBC) losing out on a lucrative Ksh.29.5 billion railway contract in Kenya.

CRBC was bidding to build the Nairobi Railway City Central Station, a major part of Kenya’s ongoing infrastructure development tied to the Standard Gauge Railway (SGR).

However, during the tender submission process, the company placed two flash disks (USB drives) containing its technical and financial proposals in the same envelope. According to procurement rules, bidders must first submit only technical documents so officials can evaluate quality and capability, before seeing any prices.

This packaging mix-up meant the tender evaluators could have seen pricing information too early something that could unfairly influence the scoring of the technical part of the bid. Competing bidders raised concerns, arguing that this violated the mandatory tender process.

The Public Procurement Administrative Review Board (PPARB) found CRBC’s bid invalid because of the error, ruling that it breached essential procurement regulations.

Also Read: Kenya takes over major SGR functions from Chinese firm

The board ordered Kenya Railways to redo the evaluation and consider other qualified bidders instead.

One of these rivals, China Civil Engineering Construction Corporation (CCECC), had quoted about Ksh.22.98 billion, which is Ksh.6.55 billion less than CRBC’s bid.

The Nairobi Railway City Project was first unveiled in 2020, with support from British and global partners, and is intended to ease congestion in the capital by linking rail services to commercial and residential development.

The decision now puts the tender’s future in Kenya Railways’ hands, which must complete the procurement process within 21 days under the board’s directive.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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