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By KABURU MUGAMBI
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The battle for a multi-million shilling contract to build East African Portland Cement’s milling plant is down to two companies, while a third bidder awaits the Government's decision after making a procedural error.
Of the nine companies who bought documents for the re-advertised tender, only three – Polysius, Imasa Ingenieria Montajes and FL Smidth – had returned them by the close of the tender. |
| East African Portland Cement factory: Only 3 companies have returned tender documents for a multi-million shilling contract to build its milling plant. |
Security
However, it was found that FL Smidth of Denmark had not included a Sh54 million ($750,000) security in its tender documents as required. The company had instead sent the guarantee directly to Portland by courier.
"Conditions were very clear that the guarantee had to be sent together with technical proposal in envelope marked A, sending it directly to us is against the requirement," said Portland's procurement manager, Luke Obiri, at the company’s office in Athi River, yesterday. FL Smidth representative, Lorraine Allen, made frantic mobile phone calls to her office to inquire the whereabouts of the guarantee, although it was received later by the company.
However, as a caution, Portland chairman Benson Ndeta said he will seek advice from the director of procurement to avoid the mistake the company made last time, leading to the cancellation of the tender by the Government.
"FL Smidth has not met all conditions, but we might ask ourselves whether it is in order for us to overlook the mistake, given that we have very few bidders," Mr Ndeta said. An insider told Nation that the Government’s decision will be out as early as today.
The Government cancelled the initial tender, which was won by Polysius, in January citing "serious flaws" in the procurement process. The tender was cancelled following an appeal by New Baron & Leveque International, which claimed that new criteria were introduced at the evaluation stage, hence disadvantaging some tenderees.
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