Water CS Simon Chelugui has said Kenya risks losing Sh11bn if it cancels the contract with CMC di Ravenna for construction of the Sh35.39 billion Itare Dam.
Already, Sh11.5 billion has been paid to the contractor in advance installments and part-payments for work done.
“Even if we were to terminate the contract now we will still need to pay the contractor Sh2.5 billion,” the CS said, insisting that the contractor has already done more work than what has so far been paid for.
The numbers he gave, however, contradicts the ones he has mentioned before.
In March, the CS said kicking the firm out would leave the taxpayer to settle the remaining project cost, amid contradictions on exactly how much work has been done.
Chelugui said they are now working in an arrangement where CMC di Ravenna, which is bankrupt, subcontracts and remains on the paper to shield Kenya from further loses.
“Antagonising the contractor might completely stall the project given that CMC di Ravenna holds the key to unlocking the remaining funds, worth nearly Sh20 billion, because the financing aspect is part of the contract. If we kick them out, the financing also goes,” Chelugui said.