This archive report was first published on 25 July 2019.
Published on July 25, 2019
Water and Sanitation Cabinet Secretary Simon Chelugui has revealed that the Cabinet will have the final say on the fate of the Sh35.7 billion Itare dam project.
The project, which was awarded to Italian firm CMC di Ravenna in 2018, has been plagued by financial challenges, with the contractor filing for bankruptcy proceedings in Italy.
Despite the contractor's financial woes, Chelugui expressed optimism that the project can still be completed, citing a proposal to have the contractor sub-contract the works while retaining themselves as the main contractor.
However, National Assembly Environment committee members were skeptical about the proposal, with committee chairman Kareke Mbiuki questioning why the ministry was struggling to negotiate with the contractor.
Chelugui warned that terminating the contract could result in the government losing the Sh11 billion loan, making it difficult to secure another lender.
