New Delhi October 11
Kenya Electricity Transmission Company Limited (KETRACO) has signed an agreement with Adani Energy Solutions Limited to enhance national electricity infrastructure, a statement released by Opiyo Wandayi, EGH, the Kenyan Cabinet Secretary for energy and petroleum said in a statement.
"This agreement marks the beginning of a transformative initiative to develop, finance, construct, operate, and maintain key transmission lines and substations across Kenya," the statement added.
Citing the challenges faced by the African nation, Wandayi said that these projects are designed to significantly enhance Kenya's national electricity infrastructure (transmission lines and substations), ensuring reliable and widespread access to power.
"The move will support Kenya's growing economy and development goals," he added.
The Kenyan Cabinet Secretary noted that the agreement concuded after four months of a long-negotiated process.
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-year period of the project agreement.
"The project cost, that is currently estimated at KShs 95.68 Billion (USD 736m) 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 statement read.
"The competitive bidding process will prioritise local content and ensure that we prioritise business opportunities for Kenyans," it added.
The Kenyan Cabinet Secretary emphasised that the Kenyan government "will not incur any financial expenditure" for this project.
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, as per the statement, Wandayi stated.
According to the statement, five transmission lines and substations are being developed.
The Kenyan Cabinet Secretary further said that after this partnership, Kenya will benefit from world-class energy infrastructure, ensuring value for money, further demonstrating the government's commitment to prudent fiscal management.