KEY POINTS
- Ketraco has confirmed that negotiations for the PPP project are still underway.
- No contracts have been signed for the $1.3 billion transmission line project.
- The PPP aims to modernize Kenya’s power infrastructure, addressing system leaks and outages.
There is still uncertainty about a $1.3 billion Public-Private Partnership (PPP) agreement to construct power transmission lines in Kenya.
This was after the deal for the power transmission lines was reported to be completed on social media, and Kenya Electricity Transmission Company (Ketraco) announced that the PPP project is still being negotiated.
David Ndii, the main economic counsellor to President William Ruto, reported on September 14 on X/Twitter that the government has granted PPP concessions to Africa 50 and Adani for the construction of additional transmission lines through Ketraco.
Their project teams are being hired by them. We do not need to borrow the $1.3 billion needed for these transmission lines.
Ketraco clarifies PPP negotiations still ongoing
Two days later, though, Ketraco issued a statement stating that they are still in the process of negotiating the plans for the building of vital high-voltage transmission lines with Africa50 and Adani Energy Solutions.
“At present, no contracts have been signed for the projects; instead, they are undergoing extensive risk assessments and legal examinations.”
According to a report by ESI-AFRICA, the utility statement stated, “KETRACO remains committed to full transparency and adherence to all regulatory processes.”
Confusion over the power lines PPP contract has arisen while the Adani Group is battling another challenge in the nation.
Hundreds of aviation employees at the biggest international airport in Kenya staged a walkout last week over a proposed agreement between the government and the Adani Group, causing planes to be grounded and stranding hundreds of travellers.
Long-term power transmission system upgrade plans
According to that proposal, the Adani Group will lease Jomo Kenyatta International Airport for a duration of 30 years, at a cost of $1.85 billion for airport expansion.
KETRACO’s Managing Director, John Mativo, stated during a stakeholder engagement earlier this week that the organization is looking into forming alliances with private businesses like Adani Energy Solutions and Africa50 in order to close the financing gap in power transmission.
According to him, these PPPs will make it possible to build new transmission lines on schedule, which would increase system stability.
Opiyo Wandayi, the cabinet secretary for energy in Kenya, announced on Monday, September 16, that over $5 billion will be required over the next 20 years to upgrade the nation’s electricity transmission system.
In its draft Budget Policy Statement (BPS) for 2024, the Kenyan Treasury stated that a feasibility study on the project was completed, submitted, and approved in May 2024 for the project to progress to contract negotiations.
Wadayi also stated on Monday, September 16, that both the Adani group and Africa 50 submitted Privately Initiated Proposals (PIPs) for different sections of the transmission line, and the project is to be completed in 2027.
The proposed project aims to modernize outdated infrastructure while reducing leaks and frequent outages (WPS).
