The flopped Galana-Kulalu project conceived eight years ago in 2014 and buoyed as a masterstroke to resolve the recurrent food shortages in the country, the joint initiative between the Kenyan and Israeli government project officially came to an unceremonious halt in 2019.
Yesterday, President Ruto ordered for the revival of the failed irrigation project and The Informer Investigative team gives a blow by blow account of the white elephant project right from inception.
The direct multi-billion tender awarded in 2014 to twin Israeli firms; Green Arava and Agri-Green at a cost of Sh14.5billion running up to 2018 was domiciled under the defunct National Irrigation Board (NIB), now National Irrigation Authority (NIA).
Our investigations further established the consultancy for pre-feasibility study and designs was inflated from the initial cost of Sh793million to Sh920million.
Green Arava is the parent company of Agri-Green Consulting which undertook a Sh920 million consultancy on the irrigation technologies for the project.
At inception, at least fifty companies were contracted to carry out bush clearing and other preparatory activities to a tune of Sh400million.
According to official records at NIA, the estimates indicate the farm and irrigation system would gobble Sh3.5billion of the Sh14.5 billion model project, knowledge and logistics centre (Sh3.8 billion), piping (Sh846 million), operations and maintenance (Sh3.4 billion) and taxes (Sh2.3 billion).
At the time, Engineer Daniel Baraza was the Managing Director at NIA while the current Athi Water Works Development Authority Chief Executive Officer Eng. Michael Mwangi Thuita was the site engineer at Galana-Kulalu.
According to documents in our possession, on August 15, 2014, NIA awarded the Sh14,545,106,963 to Green Arava Limited, the Israeli conglomerate, for the construction of a 10,000-acre model farm for the Galana-Kulalu food security project in Tana River and Kilifi counties in the Coastal region.
We established the letter of offer was issued on August 8, 2014; with pre-contract negotiations taking place the following day against a background of an August 11, 2014 deadline for the submission of tender documents and the opening of the documents done on the same day.
“There was no reasonable alternative competent contractor to implement the design of the model farm other than the sister company of the lead design consultant. (Section 74 (2) (b) of the Public Procurement and Disposal Act). (b) There was urgent need to engage the contractor in order to produce maize crop to mitigate the looming hunger.” A copy of the award of the direct tender dated August 15, 2014 seen by The Informer reads in part.
A day after the Sh14.5 billion contract was signed, the Parliamentary Committee on Agriculture raised the red flag contending the government had sanctioned the controversial deal without first securing the Sh11billion deficit that the Israeli government was expected to pump into the project.
Earlier on before the award of the consultancy, Agri-Green Consulting, working in a consortium with local firms – Amiran Kenya and Environplan – had mooted a joint proposal on concept (PoC) towards the implementation of the 10,000-acre model farm.
Agri-Green was to test the technologies that would be recommended and specifically harness the concept of the development of Galana-Kulalu food security project.
The Sh14.5 billion deal essentially envisaged the rehabilitation of the one million-acre area under the Galana-Kulalu Green Food Security Project.
The project would see the eventual hiving off of substantial portions of land under sugarcane farming, with maize production, horticulture, cattle rearing, dairy farming and fruits consuming the rest.
Agri-Green was to further develop the 10,000-acre pilot project to be run by the Government of Kenya as it test-runs myriad concepts.
During the initial phase, a dam was to be constructed to aid the irrigation activities.
With the projected total cost of Sh450 billion (US$4.5 billion) for the 1 million-acre scheme, the Sh14.5 billion (US$165 million then) 10,000-acre model project anticipated a US$165million (Sh11 billion) injection from the Isreali Government; the Kenyan Government having set aside US$40 million (Sh3.5billion).
The pilot 10,000-acre model farm was poised for upgrading tenfold to 100,000 acres in the second phase culminating in the completion of the intended Sh450-billion one-million-acre irrigation scheme by 2017.
And in yet another twist, a consortium of consultants hired by the government noted that the cost of the project could shoot to Sh1.45 trillion when the one-million-acre project comes of age.
The study report, handed over to the then Water and Irrigation Cabinet Secretary Eugene Wamalawa, noted that the Sh135.6 billion required for the water conveyance system, Sh122 billion for the dam and Sh6.4 annual pumping costs were not factored in to the initial budget, hence the expected rise in cost.
NIA also put up tender notice seeking to contract a firm for the construction of dams, staff houses and an electric fence for phase two of the food security project.
However, Agri-Green Consulting, Amiran Kenya and Environplan Management Consultants – noted that water available in the Athi/Galana River can only irrigate 402,000 acres, barely 40 per cent of the envisaged one million acres.
The consortium warned of the gigantic enormity in capital costs for pumps, steel pipes, reservoir and running cost of pumping huge volumes of water through 2m diameter steel pipes for any distance beyond 250km.
The project faced delays and controversy surrounding the misappropriation of funds, leading to its termination in 2019. The Israeli government expressed disappointment in the failure of the project.
“Galana-Kulalu project was destroyed by cartels made up of maize importers and millers. They were the reason the project was deferred from the beginning,” said former Israeli ambassador to Kenya Noah Gendler.
“This has dampened the spirit of the business sector in Israel. It is sad for the country. We have not given up, but this is sending very bad signals. Some people might fear investing.”
Now, president Ruto’s administration plans to revive the project through a public-private partnership (PPP) with the National Irrigation Authority (NIA).
Under the new plan, an initial 10,000 acres will be developed for crop production starting in February followed by an additional 10,000 acres within the next six months.
Ruto said the government will work out a model for Public–Private Partnership food production on the 350,000 acres to be ready in six months and directed the relevant government agencies to execute the project in good time.
The government will also commence the construction of a dam in April in order to bring an additional 350,000 acres under production.
However, earlier studies by Agri-Green Consulting, Amiran Kenya and Environplan Management Consultants – noted that water available in the Athi/Galana River can only irrigate 402,000 acres, barely 40 per cent of the envisaged one million acres.
Ruto previously termed the project’s failure as a “political mistake” and has expressed support for its revival.
“The Galana Kulalu project was not a political project, but a national project that was meant to address the food security challenges facing our country. We must revive the project and make it work for the benefit of our people,” he said.
The president has also revoked the intended subdivision of the Glana Kulalu irrigation project.
In a statement yesterday, the Head of State said the 10,000 acres will instead be worked on to produce maize, beginning February 2023.
“After extensive tour, with county/Gok leaders, of Galana/Kulalu national food security project today, I direct as follows: the planned subdivision into settlement parcels is revoked/canceled: private/Gok(NIA) PPP to work on the ready 10,000 to produce starting with maize in February,” Ruto said.