TBEA Co, a Chinese Power company signed a contract with the Electricity Regulation Authority (REA) for the implementation of the project that is to connect power across approximately 3,800 km of medium voltage and 5,900 km of low voltage networks with transformers and consumer connections.
Parliamentary Committee on Natural Resources is investigating circumstances
under which companies with no experience in the power sector were subcontracted
to work on the 784 billion shillings Electricity project.
TBEA Co, a Chinese Power company signed a contract with the Electricity
Regulation Authority (REA) for the implementation of the project that is to
connect power across approximately 3,800 km of medium voltage and 5,900 km of
low voltage networks with transformers and consumer connections.
However some of the subcontractors of the 32 picked to work on the project were
established in 2019. They include; Multiprom Power Eng-Smg Ltd and Voltad
Engineering Co Ltd registered in January and March 2019 respectively for a
project which was to start in August this year.
Others are Grid Engineering U Ltd, Microna Holdings, and Rosko General Investment
with no experience at all in the power line business.
The project is aimed at extending electricity to 287 Sub-Counties across the
country and the connection of over 170,000 customers directly onto the national
grid. The project is the first phase of part of the 2.8 trillion
shillings loan from Exim bank signed in 2017 and expected to benefit 500
The committee was on Wednesday evening meeting officials from the Ministry of
Energy and Mineral development led by Minister Simon D’Ujanga and officials
from the Rural Electrification Agency (ERA) EDGodfrey R Turyahikayo
to answer delays in the project.
Appearing before the committee, Energy Minister Simon D’Ujanga said that many
of the 32 companies subcontracted by TBEA to work on the power lines are new
and inexperienced companies, many of which have never worked on projects.
He says so far 42 million dollars has been given to the
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says that the contractor wanted his own group of subcontractors and rejected
several others. He says the main problem will come on standards of the work
that will be done, and also the fact that the project could face several
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Others contractors with some experience are; Nile Electric Co Limited,
Kase Engineering ltd, Enel Power service limited, Butswa Electric and
Automation contractors. Companies with very little experience are; Sales and
Engineering Co Ltd, Arison technologies, Cablesult Civil and Electrical
engineering co limited.
Those that have done some subcontracting are Electine technologies, Ranco
Engineering N.S technical contractors, Delta Power Networks among
Although TBEA had pre-qualified some 59 subcontractors to work on the
project, many of them opted out due to the pay and the scope of the
14 of the companies petitioned Parliament saying they were sidelined because
they presented credible costs compared to the inexperienced contractors that
have been hired.
According to committee chairperson Kiwanuka Keefa, the contractors who were
dropped are demanding at least 17 million shillings per kilometre for medium
voltage and low voltage among other works, contrary to TBEA’s 9 million
shillings per kilometre for the same.
says they have scheduled to meet both TBEA and the sub-contractors.