NAIROBI, Kenya, Mar 22 – The Cabinet on Tuesday approved the use of Alternative Dispute Resolution (ADR) to end the impasse in the construction of the Arror, Kimwarer, and Itare dam projects.
While approving an ADR policy, the Cabinet okayed the ongoing out-of-court negotiation between Kenya and Italy to settle the stand-off over the unprocedural termination of contracts for the three dams.
“Cabinet considered and approved the policy on Alternative Dispute Resolution (ADR),” a statement released by Cabinet stated.
“Providing an example of how Alternative Dispute Resolution can be used to unlock complex disputes, Cabinet considered and approved the resolution of the impasse in the implementation of the Arror, Kimwarer, and Itare Dam Projects through ADR.”
The Cabinet gave National Treasury the nod to enter into a negotiated commercial settlement for the Commercial Contracts and Financing Agreements for the projects.
Ruto, Mattarella deal
The move by the Cabinet comes a week after a meeting between President Ruto and Italian President Sergio Mattarella, during his visit to the country.
President Ruto had announced the resumption of the construction of the Arror, Kimwarer and Itare dams, which were subject to court cases.
The President said a framework to settle outstanding issues concerning the Arror, Kimwarer and Itare dams has been developed and the facilities provided for the projects renegotiated.
“I’m proud to announce that the construction of three dams which were subjected to court cases and court matters will be able to go on in a few months,” he said.
Former President Uhuru Kenyatta in September 2019 cancelled the Kimwarer dam project following an investigation that established that it was technically and financially unfeasible.
President Ruto said the government of Kenya and three Italian firms had agreed to withdraw court case on the cancellation of the May 2017 contract to construct two multi-purpose dams in Kerio Valley at a cost of Sh66 billion.
