Rubis wins Sh77.bn KPLC gasoline provide deal

Rubis Power Kenya fuelling station on the United Nations Avenue in Gigiri, Nairobi. FILE PHOTO | NMG

Rubis Power has received a Sh7.7 billion tender to provide diesel to Kenya Energy’s 30 off-grid stations, which is able to see the oil marketer provide low-sulphur diesel to the utility agency for 2 years.

This follows the conclusion of a case the place Dalbit Petroleum Restricted was contesting the award of the tender to Rubis, earlier than the Public Procurement and Administrative Evaluate Board (PPARB).

In orders issued by the PPARB on January 2, the Board dismissed Dalbit Petroleum’s case, paving the way in which for Rubis to undertake the 24-month Sh7.737 billion tender.

Kenya Energy marketed the tender for procurement of provide and supply of low sulphur diesel to 30 off-grid energy stations on October 10, final yr, attracting bids from six oil entrepreneurs.

5 oil entrepreneurs, nevertheless, failed on the preliminary tender analysis stage, solely Rubis succeeding by means of technical and monetary analysis phases.

Learn: Rubis takes Sh4.7bn bond as cost for gasoline subsidy

“We’re subsequently not persuaded by the applicant’s arguments to contemplate that its tender was considerably responsive and that any minor deviations in its tender had been immaterial and wouldn’t have an effect on the aggressive place of different tenders as public procurement espouses the precept of competitors which requires that collaborating tenderers ought to full on equal footing such that any non-compliance on any tender requirement requires the automated disqualification of the non-compliant tender,” the Board determined.

The Board dismissed Dalbit Petroleum’s request for overview and ordered Kenya Energy to proceed with procurement of the tender to conclusion.

The PPARB famous that on the finish of the preliminary tender analysis stage, the get together’s (Rubis Power Kenya) bid, being the one responsive bid was beneficial for award of the topic tender for a interval of 24 months primarily based on the worth formulae set out within the value schedule topic to the estimated annual funds of Sh3,868,669,072 VAT (Worth Added Tax) unique and availability of funds from MoE&P (Ministry of Power and Petroleum) as beneficial.

After bidders had been notified of Rubis Power’s win on November 17, Dalbit Petroleum moved earlier than the PPARB on December 11 submitting a request for overview.

Amongst complaints by Dalbit Petroleum was that letters of notification despatched to tenderers had been signed by Rosemary Oduor (former performing Kenya Energy MD) as an alternative of Joseph Siror (the present MD), that causes for its disqualification had been unfair and unprocedural, and that it visited 30 off-grid stations as a compulsory tender requirement, however solely 11 had been referenced within the topic tender.

Kenya Energy advised the Board that whereas it was a compulsory tender requirement for all tenderers to go to all of the 30 off-grid stations referring to the tender, Dalbit Petroleum visited solely 11, whereas the opposite 19 had been in reference to a previous tender.

Learn: Vivo Power to cement dominance with Lexo deal

“Counsel submitted that for the Applicant to qualify because the lowest evaluated bidder, it needed to cross the preliminary analysis stage, the technical analysis stage and the monetary stage and having been disqualified on the preliminary analysis stage, it wasn’t the bottom evaluated bidder and its tender wasn’t essentially the most responsive,” the paperwork state.

On January 2, the PPARB dismissed Dalbit Petroleum’s case discovering that Kenya Energy’s tender analysis committee was proper to disqualify its tender, for failing to satisfy obligatory tender necessities.

The Board determined that Dalbit Petroleum failed to go to the 30 off-grid stations Kenya Energy needs provided with low Sulphur diesel, as a compulsory requirement of the tender.

It went forward to notice {that a} procuring entity can’t waive a compulsory requirement or time period it a minor deviation as Dalbit Petroleum needed within the case, since a compulsory requirement is a hurdle {that a} tender should overcome in an effort to be thought-about for additional analysis.

→ [email protected]