The government risks losing Sh11 billion if it cancels the multimillion Itare dam contract awarded to an Italian firm linked to Arror and Kimwarer dams scandal.
According to Water and Sanitation Cabinet Secretary Simon Chelugui, the fate of the project which had been awarded to Italian firm CMC di Ravenna lies with the Cabinet.
While appearing before the National Assembly Environment Committee on Thursday, Chelugui said that the government is still deliberating on whether to continue with the project or not.
The Ministry questioned why the project was taking too long yet billions have been spent on the same.
The government had awarded Sh35.69 billion contract to CMC di Ravenna in 2018 to work on the project located in Nakuru but nothing seems to be forthcoming.
The multimillion project had been destined to supply water to different counties including Kericho, Nakuru, and Bomet among others upon its completion.
The committee chairman Kareke Mbiuki (Maara) said that it doesn’t make sense for the lawmakers to discuss a project, which seems not to be bearing fruits any soon.
“Why are you negotiating with a dead horse? Why are you negotiating with a contractor who has abandoned work? You need to activate the termination clause in the contract and deal with the contractor,” Mbiuki said, asked Mbiuki.
He further said that the ministry will discuss the matter with the Treasury before they determine what to do next.