Indian firm Adani Holdings has been in the spotlight following the proposed takeover of the Jomo Kenyatta International Airport (JKIA) through a Public-Private Partnership (PPP) which has led to aviation workers downing their tools.
As the protests against Adani over the JKIA deal intensify, the Indian firm has been roped in another deal involving the Kenya Electricity Transmission Company Limited (KETRACO), a state corporation involved in the transmission of electricity transmission in the country.
A letter seen by The Kenya Times, shows details of a proposal submitted by the Indian firm through its subsidiary Adani Energy Solutions of its plan to build three transmission lines totaling 371km and three substations, including the 206km, 400kV Gilgil-Thika-Malaa-Konza line.
The Kenya Times has since established that Adani made the proposal following the government of Kenya’s decision to opt for Public-Private Partnerships in projects aimed at addressing blackouts in the country which the Ministry of Energy has attributed to years of under-investment in transmission.
The National Treasury recently announced the approval of these projects, currently under negotiation, which aims to address the country’s power reliability issues.
Adani Energy Solutions and Africa50 are set to construct critical power transmission lines and substations under a PPP deal valued at $1.22 billion (Ksh157.3 billion), with Adani set to oversee the construction of several key transmission lines and substations.
The Indian firm’s proposed projects include the 197-kilometre (km) 400 kilovolts (kV) Gilgil-Thika-Malaa-Konza power transmission line, the 101-kilometre (220 kV) Rongai-Keringet-Chemosit line, and the 90-kilometre (132 kV) Menengai-Olkalou-Rumuruti line.
Projects set to be overseen by Adani Energy Solutions
In addition, Adani has proposed to build 400/220kV substations at Lessos and Rongai, and a 132/33kV substation at Thurdibuoro in Kisumu. The total cost of Adani’s projects is estimated at $907 million (approximately Ksh117 billion).
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“The project development or feasibility study report was completed, submitted, and approved in May 2024 for the project to progress to contract negotiations,” stated the Treasury in its draft Budget Policy Statement (BPS) regarding the Adani projects.
On the other hand, Africa50 which is owned by the African Development Bank and several African governments, proposed to construct the 400 kV transmission line from Loosuk to Lessos, spanning 165 km, and the 72 km Kisumu-Musaga 220 kV transmission line.
The package also includes associated infrastructure, such as a new 400kV switch station at Loosuk and several substations. The value of the Africa50 projects is estimated at $313.25 million (Ksh40.62 billion).
“The negotiations with the private party are underway, and the proposed terms shall be tabled to the PPP committee for approval,” the Treasury reported regarding the Africa50 project pitch.
KETRACO opts for PPP model for power projects
Kenya’s transition to the PPP model for power projects aims to address the infrastructure deficit responsible for frequent power outages while avoiding additional financial strain or escalation of the national debt.
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The government admits it hasn’t allocated enough funds to maintain or expand transmission infrastructure over the years and is unlikely to do so due to budget constraints.
KETRACO estimates that Ksh620 billion ($4.8 billion) is needed for new power lines over the next two decades, with only Ksh127.14 billion ($978 million) committed, mostly from development partners, leaving a Sh492.7 billion ($3.79 billion) gap.
“In the medium term, we need to invest about $5 billion in power transmission lines. These are a lot of resources, and that is why we want to bring the private sector to be able to bridge the gap,” said Energy Principal Secretary Alex Wachira.
A lawyer has since written to KETRACO seeking information about the company’s deal with Adani Energy Solutions.
Among the details the lawyer wants the company to reveal are the financial capacity the tendering process that was used and public participation done before the deal was signed.
The developments of Adani overseeing electricity transmission projects come at a time the proposed takeover of JKIA by the Indian firm which has sparked anger among members of the public and resulted to aviation workers downing their tools causing massive disruptions in several airports in the country.
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