The Government is to pay a consultancy firm Sh30 million for work done 12 years ago on the feasibility study and design of the Magwagwa Multipurpose Dam on River Sondu in Nyamira.
This is after Justice Jairus Ngaah ordered the Ministry of Water, Sanitation, and Irrigation’s Principal Secretary to pay Smec International Pty Limited Sh30,359,207 ($378,176) in damages.
The money was awarded by the court in a ruling dated September 18, 2020, but the Ministry neglected to pay, causing the company to go back to court and ask for compelling orders.
Justice Ngaah on Friday said being a decree against the government, the firm had no alternative means through which it can enforce the judgment entered in its favour other than through a compelling order.
The sum will be paid together with interest at a rate of two per cent from August 16, 2012, until payment in full.
The firm entered into a contract with the ministry on May 31, 2010.
The development project worth Sh98 billion is under the Lake Basin Development Authority and is part of the country’s Vision 2030 projects and a key investment opportunity in the Western Kenya region.
The dam and hydropower component comprises a 95 metres high and 450 metres long concrete-faced rockfill and will be used to generate 120 megawatts of hydropower.
Phase One development will be limited to the provision of bulk water supply to Magwagwa town and the existing treatment facilities at Nyakach.
The contract provided for scheduled payments which were dependent on the delivery of service and invoicing by the firm at different stages of the project.