The GFT project was billed to be Africa’s largest airport terminal upon completion. The terminal which was commissioned by Uhuru Kenyatta in 2013 was part of the government’s plans of achieving the vision 2030.
The Kenya Airport Authority (KAA) explained the move as an immediate mitigation plan meant to cut down losses at the company that had caused the down for the last three years.
“The decision was occasioned by the prevailing operational, economic and financial dynamics which have been on a downward trend in the past three years,” KAA wrote in the directive
The Transport Secretary, James Macharia had told business daily in an interview that the project was not giving any value for money. It was therefore more logical for the government to scrap it and and build a second runway in it’s place.
The contractor who had been commissioned for the project had so far done preliminary work for the project worth more than KSh8 billion. Another KSh 5 billion had already been spent on civil works consultancy services totaling the amount to KSh 13 billion.
A good part of the amount was yet to be paid to the Chinese company at the termination of the project. The contractor likely to take the government to court on the grounds of breach of contract.If the matter is settled in court, the government will spend more on penalties of unpaid monies to the contractor.
KAA is said to be on the late stages of a collaboration between Kenya and the United States that will see the company have direct flights to the US.
The GFT project was initiated to help serve the ever increasing passengers who pass through JKIA. It was one of the major projects started by Uhuru Kenyatta when he assumed office in 2013. The project was meant to turn the airport into a world-class aviation gem.
Source: The Spostlight Post.com
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