Chinese firms dominate race for Dandora power plant deal
People collect recyclable materials at the Dandora dumpsite in Nairobi on December 9, 2020. Chinese firms dominate the preliminary list of firms angling for a contract to set up a 45 megawatts (MW) garbage-powered electricity plant at the Dandora dumpsite.
Chinese firms dominate the preliminary list of firms angling for a contract to set up a 45 megawatts (MW) garbage-powered electricity plant at the Dandora dumpsite.
Records by the Nairobi County government showed that 18 firms—eight of them Chinese--expressed interest in implementing the project whose feasibility study findings have already been approved.
The firms eyeing the contract for design, financing, operation, and maintenance of the planned power plant include; M.s Makyol Insaat Sayayi Turizm ve Ticaret A (Turkey), M.s Micropower Corporation and Enercon Energy Consultants Limited (US), M.s Nepra Resource Management PVT Ltd (India), M.s Iron Bridge Africa, and M.s Omnia Distributors Ltd (Kenya).
Others are M.s China Aviation Planning and Design Institute (Group) Co. Ltd (China), M.s Satarem America Inc.(US), M.s China National Electric Engineering Co Ltd(China), M.s China Machinery Engineering Corporation(China), M.s N.S. Thermal Energy PVT. Ltd (India), M.s Shaghai Sus Environment Co. Ltd (China) and Silicon Hub Ltd(Kenya).
Also on the list of interested firms are M.s Hitachi Zosen Inova(Switzerland), M.s Headway USA and PSVECC Ltd (JV)(US), M.s Consortium of China Energy International Group Co Ltd and China Tianying Inc(China), M.s Hunan Construction Engineering Group Co Ltd (China), M.s China State Construction Engineering Corp Ltd (China), and M.s Yunnan Construction and Investment Holding Group Co Ltd (China), M.s SFC Environmental Technologies PVT Ltd(India), Sustainable Energy for Africa Green and Energy.
The Nairobi County government yesterday invited the 18 companies to submit proposals for the project which it said is targeted to process a minimum of 2,500 tonnes of municipal waste per day. The city generates about 3,000 tonnes of garbage per day but estimates show that only about half of it is collected.
Joint venture
It said the power plant would be a joint venture implemented on a Design, Build, Finance, Operate, and Transfer (the “DBFOT”) basis with an agreed concession period.
“Under this model, the entire investment for designing, setting up of the ‘waste to energy’ processing plant, including operation and running and maintenance expenditure of the plant shall be borne by the selected company /consortium/agency for the entire tenure of the contract/agreement,” City Hall said.
“The preferred company /consortium/agency shall supply the energy produced in compliance with all applicable government policies, legislation, and regulations. The other products, produced if any, shall be sold or supplied by the company /consortium/agency on their own” it added.
Parties implementing the 45MW power plant project will cater to the thousands of people currently eking a living through the recycling of material collected at the targeted site.
“Currently there are about 3000 persons who reside and directly eke a living off the proposed site through material recovery from the waste. The objective of NCCG (Nairobi City County Government) is to provide an opportunity for alternative dignified means of livelihood, develop decent social infrastructure towards a livable environment that guarantees high quality of life for all” City Hall said.
“The bidder is expected to develop a proposal that addresses the plight of these families in sync with the county government objective for the socioeconomic development of the people” it added.
