Transmission Deals with Adani Energy in Kenya Is Still In the Works

Posted on : Monday , 23rd September 2024

Kenya Electricity Transmission Co. stated that it is still in discussions with Adani Energy Solutions Ltd. for the building of three power lines, considering a statement made by a presidential adviser stating that contracts worth up to $1.3 billion had already been given to two companies, including the Indian company.

As per Ketraco, the agency, Adani showed interest in building 388 kilometers (241 miles) of high-voltage transmission lines last year. According to Anthony Musyoka, general manager at Ketraco who oversees project development, the project's original cost of around $1.01 billion was lowered down to $736.5 million in a proposal recently.

At a meeting with stakeholders in Nairobi, the country's capital, Chief Executive Officer John Mativo stated, "There are still many boxes to tick." "We're going to get this country the best deal."

According to Mativo, Kenya can no longer depend on the National Treasury to pay for new links because it has a $5 billion finance deficit, or roughly $250 million yearly, for power lines. Its two countrywide outages this year alone, he claimed. It's not where it should be, he added, but our grid has improved.

In Adani's proposal, a new 206-kilometer Gilgil-Thika-Malaa-Konza line, a 95-kilometer Rongai-Keringet-Chemosit link, and a about 98-kilometer Menengai-Ol Kalou-Rumuruti conduit are all to be built.

Adani is estimating an internal rate of return on equity of 16% and a cost of debt of 11.5%. According to Mativo, Ketraco wants a lower 9.5% cost of debt and 14% IERR.

A proposal to construct 273 kilometers of power lines in Kenya has been made by a joint venture of Africa50, an infrastructure investment branch of the African Development Bank, and the government-backed Power Grid Corp of India.