Energy and Petroleum CS Opiyo Wandayi has announced the signing of a 30-year deal between Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions.
In a statement on Friday, October 11, the CS said the deal would see Adani Energy Solutions develop, finance, construct, operate, and maintain key transmission lines and substations across the country.
CS Opiyo further stated that the Ksh 95.68 billion deal will address the persistent power blackouts, as well as ensure power reliability.
"The signing of this agreement marks the conclusion of a long-negotiated process that has been ongoing for the past 4 months. As part of this infrastructure development, the Project Company will raise all the funding in form of debt and equity that will be repaid over the 30-year period of the project agreement.
"The project cost, that is currently estimated at KShs 95.68 billion will be crystallised through a competitive bidding process, that will be jointly handled by KETRACO and the Project Company, thus ensuring significant value for money for the country. The competitive bidding process will prioritise local content and ensure that we prioritise business opportunities for Kenyans," the CS said.
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CS Opiyo explained that the government will not spend any money on the project, adding that Adani Energy Solutions will transfer all assets to KETRACO once the 30-year period ends.
"The country will benefit from world-class energy infrastructure ensuring value for money, further demonstrating the government’s commitment to prudent fiscal management. 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 added.
He added that KETRACO conducted comprehensive due diligence on Adani Energy Solutions before entering the deal.
The transmission lines and substations being developed are 400kV (Double-Circuit) Gilgil-Thika-Malaa-Konza Line, 220kV Rongai-Keringet-Chemosit Line, and 132kV Menengai-Ol Kalou-Rumuruti Line.
Others are the 400/220kV Substation at Lessos and the 132/33kV Substation at Thurdibuoro.
