[2008-08-14]  KPLC warns suppliers over contract delays
Electricity distributor Kenya Power and Lighting Company (KPLC) has directed its contractors and suppliers to complete their projects on time or lose them.

Some 400 contractors have been given a deadline of end of next month to complete their jobs, failure to which they would lose their contracts, said the managing director, Joseph Njoroge.

Contractors have been blamed for slowing down the company’s Rural Electrification Programme.

Energy minister Kiraitu Murungi said conflict of interest is the reason why the company cannot act against the contractors since some of the tenders had been awarded to companies associated with or owned by top KPLC managers.

Others problems include the recovery of bad debts and as well as restoration of disconnected power supply. Last month’s expiry of the management contract with Canada’s Manitoba Hydro International (MHI) has seen pressure mount on the new management to maintain the high standards set by the World Bank funded expatriates.

Before MHI was contracted as part of the Sh2 billion Energy Sector Recovery Project (ESRP) two years ago, the number of KPLC customers waiting to be connected stood at 60 000 with a waiting period of up to three months.

By end of last month, this number had dropped to 26,000 bringing customer base of the power firm to nearly one million. Some 9,000 customers are expected to join the grid by the end of this month. KPLC plans to connect at least 200,000 customers by 2012.

The Ministry of Energy says it will propose changes to the Energy Act to allow KPLC access funds to fastrack connections and repayments. Already, new laws banning the export of scrap copper, aluminium and steel cables and conductors have been enacted.

Source: Businessday