The Chinese company contracted to build the multi-million shilling Thwake Dam has challenged a High Court decision which ordered the auctioning of its property over failure to pay a disputed debt owed to a local construction firm.

China Gezhouba Group Company Limited (CGGC) was last week ordered by High Court Judge Alfred Mabeya to pay JTG Enterprises Ltd Sh682.76 million for breach of a sub-contract entered in July 2019.

The sub-contractor, which was hired to do excavation and support for the main spillway project, successfully sued the Chinese contractor following a dispute over payment as per the terms in sub-contract supplementary agreements.

But in a press statement sent to newsrooms yesterday, CGGC claimed the allegations by the sub-contractor were misleading.

“The ongoing legal proceedings involving JTG Enterprises Limited, one of the subcontractors engaged in spillway excavation and slope drainage support works, stem from their failure to fulfill the terms stipulated in the subcontract agree,” said Tang Yazhou, CGGC’s Authorized Representative and the General Manager of the Kenya branch in a statement.

Hard rock

CGGC further says JTG’s unilateral departure from the project site in May 2022, without requisite authorization from the main contractor, the owner, and the site engineer, led to a breach of contractual obligations.

“JTG’s submission of an inaccurately prepared geotechnical analysis report, unsupported by scientific exploration methodologies, raises significant concerns about the veracity of their claims. This report erroneously concluded that all excavated materials, totaling 7 million cubic meters, were composed solely of hard rock. Notably, this claim has been refuted by SMEC – the project’s consultant,” the statement added.

The High Court awarded the Kenyan firm the sum that included amounts arising from the supplementary agreement which the Chinese firm had failed to remit on “erroneous contention” that it amounted to variation of the sub-contract.

Vision 2030

During a site visit last week, Water Secretary Samuel Alima, said the government was closely monitoring the construction of the dam, on the boundary of Kitui and Makueni counties, to enhance food security in the lower Eastern region.

Alima expressed satisfaction with the works saying there is good progress which was at 84.4 per cent completion “and we are determined to meet the deadline.”

The Kenya government and the African Development Bank (AfDB) through the Ministry of Water, Sanitation and Irrigation is implementing this Vision 2030 flagship program to fulfill the long-term country’s development ambition in the areas of water, energy and agriculture.

The program comprises a multi-purpose dam for water supply, hydropower generation and irrigation development. It will also provide regulation of flows on River Athi downstream of the dam for flood control and drought mitigation.