NAIROBI, Kenya, Oct 12 – The Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited have signed a Sh95.68 billion ($736 million) agreement.
The agreement will see Adani build and operate four electricity transmission lines and two substations for 30 years before handing them back to Kenya.
In a statement, the Energy Cabinet Secretary, Opiyo Wandayi, stated that the deal, which was signed on Wednesday, came after a negotiation process that had been in progress for the past four months.
According to the CS, the project aims to address the “persistent” power blackouts that the country has been facing.
“As part of this infrastructure development, the Project Company will raise all the funding in the form of debt and equity that will be repaid over the 30 years of the project agreement,” it stated.
“These projects are designed to significantly enhance our national electricity infrastructure (transmission lines and substations), ensuring reliable and widespread access to power that will support Kenya’s growing economy and development goals,” it added.
The lines that are set to be financed through this agreement include 400kV (Double-Circuit) Gilgil-Thika-Malaa-Konza Line: Spanning 208.73 km, 220kV Rongai-Keringet-Chemosit Line: Covering 99.98 km, 132kV Menengai-Ol Kalou-Rumuru, which will be an 89.88 km line, a 400/220kV substation at Lessos, and a 132/33kV substation at Thurdibuoro.
Wandayi further stated that the transfer of the transmission line from Adani to Kenya after 30 years will ensure long-term sustainability and efficiency.
“Adani Energy Solutions will manage the transmission line for 30 years, ensuring long-term sustainability and efficiency, and thereafter transfer the project and all its assets to KETRACO,” he stated on Friday.
According to the CS, the project, in addition to addressing power outages and elevating the country’s energy infrastructure, will play a fundamental role in creating job opportunities and stimulating economic activity in different parts of the country.
The agreement came days after KETRACO declined to make public details of the company’s partnership agreements with an Indian firm, Adani Energy Solutions, whose sister company is also facing opposition on the Jomo Kenyatta International Airport proposed lease.
In a letter last month, the IC Law advocates requested access to critical information regarding the reported agreement with Adani.
The letter, dated September 11, cites the firm’s right to access public information, as guaranteed by the Kenyan Constitution, demanding full disclosure of the project agreements related to the partnership, the financial capacity of Adani Energy Solutions as the tendering company, the tendering process undertaken for the projects, and an appraisal of the legal, regulatory, social, economic, and commercial viability of the projects.
Furthermore, the firm requested details on public participation in the decision-making process, approval from the Attorney General, and any letters of support, credit guarantees, or risk guarantees issued by the relevant ministries.
