Adani to Manage Kenya's Power Transmission Lines for 30 Years in Ksh 95.7 Billion Deal.

Adani to Manage Kenya's Power Transmission Lines for 30 Years in Ksh 95.7 Billion Deal.

The Kenya Electricity Transmission Company Limited (KETRACO) has entered into a Ksh 95.7 billion agreement with Adani Energy Solutions Limited.

This deal will facilitate the operation and maintenance of transmission lines and substations for a duration of 30 years.

The initiative aims to tackle ongoing power outages in Kenya.

Energy Cabinet Secretary Opiyo Wandayi announced the signing of the agreement on Friday, October 11, stating, “I am pleased to confirm the successful signing of the project agreement between KETRACO and Adani Energy Solutions Limited on October 9."

He described this agreement as a transformative measure to develop, finance, construct, operate and maintain essential transmission infrastructure across the nation.

Wandayi mentioned that Adani will fund the project using a blend of debt and equity with repayment scheduled over the next three decades. 

“Adani Energy Solutions will oversee the management of the transmission lines for 30 years, guaranteeing long-term sustainability and efficiency,” he remarked.

Under this agreement, Adani, with support from KETRACO, will also take charge of the bidding process for the project. 

After the completion of the 30-year period, ownership of the project's assets will revert to KETRACO.

This signing comes amid skepticism from some Kenyans about Adani's reputation. 

Nonetheless, CS Wandayi assured the public that KETRACO conducted thorough evaluations of the company and found no reasons for alarm.

The comprehensive project involves developing the Gilgil-Thika-Malaa-Konza and Menengai-Ol Kalou-Rumuruti transmission lines, as well as constructing a substation at Lessos, among other infrastructure enhancements.

The transmission lines and substations will include the 400kV (Double-Circuit) Gilgil-Thika-Malaa-Konza Line, which spans 208.73 km.

New substations will be established at Gilgil, Thika, and Malaa, with substantial extensions planned at Konza.

The agreement marks Adani's second major initiative in Kenya, with ongoing discussions about operating JKIA's facilities.

Wandayi noted that the project would also develop a 220kV Rongai-Keringet-Chemosit Line covering 99.98 km, which includes substations at Rongai, Keringet, and Chemosit. 

The 132kV Menengai-Ol Kalou-Rumuruti Line, stretching 89.88 km, will feature substations at Menengai, Ol Kalou and Rumuruti.

The development of the 400/220kV Substation at Lessos is critical for supporting the transmission network and enhancing regional power stability.

The project will also construct a 132/33kV Substation at Thurdibuoro, which will expand the local distribution grid and provide essential power to underserved communities.

Wandayi stated that the project aligns with Vision 2030, Kenya’s long-term plan to achieve middle-income, industrialized status. 

By improving electricity transmission capacity, the government aims to foster industrial growth and bolster regional integration, guaranteeing reliable power for industries and households throughout the country.

“This initiative aligns with the Government’s Bottom-Up Economic Transformation Agenda, which seeks to promote equitable economic growth and development,” he added.

Wandayi concluded that the project will strengthen the national electricity infrastructure, providing widespread access to power that will support Kenya’s economic growth and developmental goals.

All funding for the project will be raised by the Project Company in the form of debt and equity, with repayment planned over the 30-year agreement period.

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