The Kenya Airports Authority (KAA) spent Sh7.22 billion on the construction of the unit, car park and other works for the contract that was initially set at Sh4.15 billion – representing a 74 per cent variation.
“The variation has come about as a result of changes in scope in converting the terminal from domestic to international terminal,” KAA managing director Lucy Mbugua told Parliament’s Public Investment Committee (PIC) last week.
The committee had taken Ms Mbugua, general manager Philemon Chemwada and acting corporation’s secretary Victor Arika to task over the huge variation.
The public procurement laws prohibit contracts involving State agencies to be varied by more than 25 per cent.
The authority argued that the variation was the result of a rise in commodity prices, which hiked the budget by Sh670 million, time extension (Sh239.2 million) and conversion of the domestic terminal into an international facility (Sh1.49 billion).
JKIA Unit 4 project, which began in September 2010, was set for completion in August 2013 – meaning it is nearly a year behind schedule.
The project is part of the second phase of the airport expansion and involves construction of Unit 4 building and a multi-storey car parking facility that can accommodate 1,500 cars.
According to KAA, completion of the second phase of expansion will ease the airport operational constraints, and provide adequate parking for those using the airport.
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