Controversy as Qataris jet in for $350 million airport project

A delegation from Afro Asia, the Qatari firm at the centre of the multi-million ‘airport city’, is expected in town on Sunday even as doubts grow about the implementation of the project.

The delegation comes in the midst of growing skepticism over the project signed between the firm and Kenya Airports Authority (KAA) at the tail-end of the seven-year tenure of former chief executive George Muhoho.

Most ironically, it comes after chairman Martin Wambora told the press that it had been shelved: “I can assure you no project will take place until due diligence is done by an independent organisation so that we are sure of that group’s position.”

Taken aback

On Saturday, some of the KAA officials we talked to appeared taken aback by the news of the “huge” delegation led by the Afro Asia chairman. It is expected at the JKIA at 1500 hours.

The project involves development of a convention centre at the Jomo Kenyatta International Airport, which includes a five-star hotel. At $350 million, it is expected to be the largest foreign direct investment (FDI) in Kenya’s history.

The Cabinet approved the deal in February 2008, paving the way for the concession of 90 acres of KAA land next to the airport for 80 years under a build-operate-and-transfer arrangement.

But controversy dogs it all along with some KAA board members claiming that they are in the dark over what the agreement is all about.

Not surveyed

For one, the 90-acre plot on which the centre is to be built is yet to be surveyed and demarcated as ordered by the Cabinet as a pre-condition for the project implementation.

But the Afro Asia official told Sunday Nation on phone on Saturday: “This is a large project and everything goes step by step. We have some of the best surveyors and every thing will be done.”

Besides the survey, KAA was supposed to carry out an independent due diligence on the firm, to determine whether it has the financial and logistical capacity.

Authority sources blame the finance, legal, engineering, marketing, business development and procurement for not carrying out “proper” due diligence on the firm.

“No due diligence was submitted to the board by Mr Muhoho,” said the sources.

However, the Nairobi-based officials say the firm has developed vast real estate in Doha, Qatar, and is patronised by the royal family of the rich oil emirate.

The official confirmed the postponement of a previous ground-breaking ceremony at which President Kibaki was supposed to officiate on March 24. He did not shed much light though.

Sunday Nation sources have previously intimated that the function was put off by the board to avert a situation where the president would be embarrassed a la Kenya Pipeline Company debacle.

Here Mr Kibaki and Prime Minister Raila Odinga were hauled to Makindu near Mombasa only for the system they were ‘launching’ to misfire.

Officials of Afro Asia say they have already completed comprehensive architectural drawings of the complex although KAA officials say submission of the drawings was one of the pending issues.

He added that funds for the project had already been earmarked.

“It is important for us to support the project as it will help our people,” said the official who is of Kenyan origin. “Otherwise these funds will end up in a country like Egypt which is a favourite destination.”

Previous newspaper reports have suggested the deal is biased in favour of the Qataris even as KAA sources reveal penalties running into billions await the authority if it defaults.