Fears Marsabit dam project could become a white elephant

In the 2023–24 financial year, the Treasury allocated Sh50 million towards revival of Badasa dam in Marsabit County, a project that stalled nearly a decade ago after Sh2 billion payments to a construction firm associated with Marsabit Senator Mohamed Chute.

Former Treasury Cabinet Secretary Prof Njuguna Ndung’u had in his budget speech pledged a total Sh50 billion for revival of 25 dams which collapsed years ago, giving hope to millions of thirsty Kenyans. 

A month later, Water Secretary Samwel Alima defended the ministry’s decision to explore public-private partnerships in reviving at least 33 projects, with 23 foreign firms expressing interest.

The Water and Irrigation Ministry had claimed Badasa dam was 80 per cent complete and could be fully operational by 2024/25. 

However, the Sh50 million allocation raised concerns, as over Sh2 billion had already been spent on the dam with little to show.

The Sh50 million was intended for feasibility studies and possibly design works. 

But with the rejection of the 2024-25 Finance Bill and President William Ruto’s warning of massive development budget cuts, Badasa’s completion could be among hundreds of projects the government will shelve.

The Water ministry’s revelation of foreign firms’ interest in reviving dams, including Badasa, is yet to materialise. 

Mr Chute’s Midroc Water Drilling Company Ltd was awarded a tender for construction of the dam in 2009 and the project was to be completed two and a half years later.

Nearly 15 years later, the project is a white elephant. The Standard could not immediately reach Midroc, Treasury or Marsabit County by press time on the future of the dam.

Midroc received the last of over Sh2 billion in payments in 2022 following a court case it filed in 2013 against the National Water Conservation and Pipeline Corporation (NWCPC).

The two parties entered a settlement despite the NWCPC’s assertions that Midroc failed to meet completion deadlines even after being granted two extensions and being fined for the delays.

The project, initially commissioned in 2009, has faced numerous delays and setbacks, with procurement laws raising questions on how the cost went up by over 100 per cent while it remains incomplete. 

Marsabit residents continue to suffer from the persistent water crisis, as the dam’s failure to be completed denies them water harvesting opportunities during rainy seasons, leading to flooding.

Farmers still have to watch hundreds of animals die from thirst each year as they struggle to sustain enough crops for food. Their households are forced to endure self-imposed water rationing due to scarcity. At times, this shortage fuels conflict between communities.

In its budget papers to the National Treasury, the Water and Irrigation Ministry stated that Badasa dam was 80 per cent complete. The ministry added that the dam could be fully operational by the end of the 2024/25 financial year.

“The projected completion was long overdue given the suffering of the people in that area. After the tendering process, the construction of the dam was awarded to the plaintiff (Midroc Water Drilling Company Ltd) at the contract sum of Sh2,389,846,058.83,” the NWCPC said in an affidavit.

Senator Chute filed affidavits on behalf of Midroc claiming that the NWCPC was responsible for the delays.

Court papers seen by The Standard show that Badasa dam was to hold up to 1.2 billion cubic metres of water when at full capacity.

The court papers show that the engineering consultant hired by the NWCPC to supervise construction wrote to Chute’s company several times and raised concerns over slow progress. The court files further show that at the end of 2011 when Midroc should have been handing over a complete dam, the project was only halfway done. The NWCPC granted two extensions of one year. The second extension came with a fine of Sh300,000-a-day.

Petronilla Agut of the NWCPC said in a court affidavit that Midroc Water Drilling Company approached the agency in January, 2013 seeking to have the contract terminated. Construction had stalled after completion of 67 per cent of the works and Midroc was broke. Senator Chute’s firm had now accumulated fines of over Sh70 million.

The NWCPC had already docked Sh20 million from Midroc’s payments at this point. Negotiations started but less than one month later Midroc filed a suit at the Milimani High Court accusing the NWCPC of breaching the construction contract.

Mr Chute in his affidavits claimed that there were design flaws which delayed construction. He also claimed that changes to the dam’s design contributed to further delays.

The Standard has learnt that among the challenges was that the dam was constructed nearly a kilometre off the right location, which meant that excavation of the embankment had to be made deeper to accomodate the error.

At the time the project stalled, the total cost had already been varied from the initial Sh1.7 billion to nearly Sh3 billion.