Inset: Indian billionaire Gautam Adani.
Kenya has tapped an advisory fund of the World Bank to revive construction of a critical Sh49 billion electricity transmission line and substations, which had earlier been awarded to the embattled Adani Group.
Mr John Mativo, managing director of the Kenya Electricity Transmission Company, said discussions with the World Bank are already underway to tap new investors expected to build the 210-kilometre 400 kilovolts (kV) Gilgil-Thika-Malaa-Konza and two substations through a public private partnership (PPP) model.
Construction of the line alongside two others was cancelled in October last year after indictment of billionaire founder and owner Gautam Adani in America on bribery allegations.
The line is vital in helping Kenya reduce pressure on the current line that evacuates electricity from Olkaria to Nairobi North and further to Dandora in a bid to weed out blackouts linked to overloading of existing infrastructure.
“We are discussing with the World Bank and IFC to utilise a small transaction advisory fund to accelerate the procurement of a new PPP investor for the extremely urgent 400-kilovolts Gilgil (Malewa)-Thika-Malaa-Konza. “A good estimate is that the procurement (tender stage) of the new investor will commence around July 1 but we will try to shorten the time,” said Dr Mativo.
“That line is extremely important because the existing line from Olkaria to Nairobi North and then to Dandora at times is overloaded and causes system constraints during peak hours.”
Engineering, procurement, and construction of the Gilgil-Thika-Malaa-Konza line will cost an estimated Sh23.5 billion while wayleave compensation will take Sh8 billion and other costs combined will cost Sh10 billion.
A further Sh7.5 billion will go to taxes tied to the project. The line will include construction of two new substations of 400/220 kV each at Gilgil and Malaa and another one of 400/132 kV at Thika.
An overload on the Olkaria line in November 2023 plunged the countrywide into a third national blackout in five years, underlining why the government is keen to speed up a revamp of the transmission network.
Adani Energy Solutions was to build three lines including the 95 kilomtre 220kV Rongai-Keringet-Chemosit and the 70 kilometre 132kV Menengai-Olkalou-Rumuruti lines. It was also to build a 400/220kV substation at Lessos and Rongai 132/33kV Thurdibuoro substations in Kisumu.
Adani was to recoup its total investment of $1.3 billion (Sh168.01 billion at current exchange rates) in Kenya by charging consumers a tariff which was to be lumped onto their monthly bills over a 30-year period.
