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Reading: Energy CS Wandayi reports that KETRACO and Adani have signed a Ksh. 95 billion deal.
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Newsunplug Kenya > Blog > Business > Energy CS Wandayi reports that KETRACO and Adani have signed a Ksh. 95 billion deal.
Business

Energy CS Wandayi reports that KETRACO and Adani have signed a Ksh. 95 billion deal.

Ivy Irungu
Last updated: October 11, 2024 4:56 pm
Ivy Irungu 7 months ago
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Energy and Petroleum Cabinet Secretary Opiyo Wandayi has officially announced the signing of a multi-billion shilling deal between the Kenya Electricity Transmission Company Limited (KETRACO) and Adani Energy Solutions Limited. According to CS Wandayi, the Ksh.95.68 billion (USD 736 million) agreement will see the Indian company develop, finance, construct, and operate critical transmission lines and substations across Kenya.

“All Kenyans are well aware of the significant challenge that our country faces with persistent power blackouts. These projects are designed to significantly enhance our national electricity infrastructure (transmission lines and substations), ensuring reliable and widespread access to power that will support Kenya’s growing economy and development goals,” said CS Wandayi.

He noted that the comprehensive project will be fully funded by the private sector, with Adani Energy Solutions raising both debt and equity. Over the next 30 years, Adani will manage the infrastructure under the agreement to ensure long-term sustainability before eventually transferring it to KETRACO.

“The Kenyan government will not incur any financial expenditure, and the project offers value for money through a competitive bidding process,” Wandayi emphasized. “The signing of this agreement marks the conclusion of a long-negotiated process that has been ongoing for the past four months.”

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CS Wandayi explained that KETRACO conducted comprehensive due diligence on Adani Energy Solutions, alongside thorough stakeholder engagement, to ensure all concerns were addressed and the project was set for successful execution.

“This project aligns with the government’s objective of expanding electricity access across the country, minimizing transmission losses, and addressing blackouts. It will empower communities, create job opportunities, and stimulate economic activity at the grassroots level.”

The ambitious project includes several high-voltage transmission lines and substations:

– Gilgil-Thika-Malaa-Konza 400kV Double-Circuit Line: Spanning 208.73 km, this line will feature new substations at Gilgil, Thika, and Malaa, along with substantial extensions at Konza.
– Rongai-Keringet-Chemosit 220kV Line: Covering 99.98 km, this line will include new substations in Rongai, Keringet, and Chemosit.
– Menengai-Ol Kalou-Rumuruti 132kV Line: A 89.88 km line with substations in Menengai, Ol Kalou, and Rumuruti.
– Lessos 400/220kV Substation: This substation will support Kenya’s 400kV transmission network and improve regional power stability.
– Thurdibuoro 132/33kV Substation: Designed to expand the local distribution grid, this substation will help bring reliable power to underserved areas.

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