Gulf Energy gets the go-ahead on Sh170bn Lamu coal power project

What you need to know:

  • Gulf Energy, however, says they are ready to start, with a finish date of 2017. “We hope, with facilitation by the Government, to reach financial closure within six months. Construction of the plant will last 21 months,” said a top Gulf Energy official.
  • A tender evaluation official Tuesday accused both the Chinese firms of attempts to change the Specific Fuel component, a key element which determines the cost of the plant, saying this amounted to change in substance of the original bids and prices.
  • The two Chinese companies also claim that the consortium led by Gulf Energy was favoured during the process, first being allowed to change their partners, replacing Tata group with Centum Investment, which is against the rules.

The Government Tuesday moved to award the Sh170 billion Lamu coal plant tender, even as other bidders say the public stand to lose Sh19 billion in extra costs.
In a letter sent on Tuesday to the best evaluated bidder, Gulf Energy, Energy Principal Secretary Joseph Njoroge informed the consortium that they can go ahead and negotiate with Kenya Power on pricing.

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