The saga surrounding the financing and tender process of Kenya’s Arror and Kimwarer dams projects has taken a new twist, uncovering a web of misleading contracts and misplaced government borrowing. The controversy centers on the misrepresentation of loan agreements and the involvement of Italian firms, CMC di Ravenna and Itinera SPA, in a project initially intended for a different execution plan.

The Misleading Assertions

Contrary to official claims, the tender for the Arror and Kimwarer dams floated by the Kerio Valley Development Authority (KVDA) was not meant to result in government borrowing but was advertised as a concession contract. However, the involvement of CMC di Ravenna-Itinera, an Italian joint venture, introduces a perplexing layer, as documents reveal their late and unanticipated entry into the project, bypassing the initial PPP arrangement. The narrative that emerged from the loan contracts, suggesting a direct procurement and borrowing for the dams, conflicts with the actual paper trail and procurement process carried out by KVDA.

The Paper Trail Conflicts

Further investigation into the documents reveals that the contract awarded to CMC Ravenna of South Africa, as initially publicized, lapsed due to the company’s inability to meet financial closure within the stipulated timeframe. This discrepancy raises questions about the legitimacy of the subsequent contract signed with CMC di Ravenna-Itinera, which appears to have been contrived without proper evaluation or procurement by KVDA. This anomaly suggests a deliberate attempt to mislead and misappropriate funds under the guise of a construction project.

The Conclusion of Misguided Borrowing

Ultimately, the analysis of loan agreements and related documents indicates that the Kenyan government was misled into borrowing substantial sums from European lenders for purposes unrelated to the original PPP tender. The purported borrowing for goods and services from Italy starkly contrasts with the project’s initial objective to design, finance, build, and operate the dams under a concession contract. This situation not only exemplifies the pitfalls of opaque procurement processes but also highlights the consequences of misaligned project financing and implementation strategies.