India’s Adani Group has signed a $736 million over 30 years Public-private partnership contract for the financing, construction, operation and maintenance of 276 km (171 miles) of power transmission lines and three substations in East Africa.
The agreement was signed by Adani’s power transmission subsidiary, Adani Energy Solutions Ltd, and Kenya Electricity Transmission Co. (KETRACO), a state-owned company that plans, designs, builds, owns, operates and maintains 4,127 km (2,564 miles) of electricity. transmission infrastructure in Kenya.
“This agreement marks the beginning of a transformative initiative to develop, finance, build, operate and maintain key power transmission lines and substations across Kenya,” said Opiyo Wandayi, Kenya’s Energy and Petroleum Cabinet Secretary on last month
In one of the first major projects under the contract, Adani will build the 206 km (128 mile) 400 kV Gilgil-Thika-Malaa-Konza power transmission line to serve areas around the Kenyan capital, Nairobi.
The transmission line is divided into three phases along the 113 km (70 mi) Gilgil-Thika, 21 km (13 mi) Thika-Malaa and 65 km (40 mi) Malaa-Konza segments. The project also includes the construction of the 132 kV Thurdiburo substation and another 400/220/132 kV substation at Rongai. The start date of the works has not been announced.
When completed, the new power transmission lines would improve the reliability of Kenya’s power supply, reduce transmission losses and address low voltage cases and improve the East African regional power market.
Adani Energy Solutions Ltd will also develop the 70 km (43 mi) 132 kV Menengai-Olkalou-Rumuruti double-circuit transmission line which will provide a grid connection for the Menengai Geothermal Power Project which has the potential to generate estimated at 1,600 -MW. Started in 2009, the geothermal project is being delivered in five phases by Geothermal Development Co., a state agency that develops geothermal sites and sells the power to state-owned Kenya Electricity Generating Company PLC (KenGen) and private investors.
The Development Bank is advancing other transport work
Separately, KETRACO has used Africa50, the infrastructure arm of the African Development Bank, to build two additional power transmission lines.
The Africa50-led project involves the development, financing, construction and operation of the 177 km (110 mi), 400 kV Lessos–Loosuk line and the 64 km (40 mi) 220 kV Kisumu–Musaga line. .
“Once completed, the project will be the first independent power transmission in Kenya and will set a benchmark in Africa as the first transmission line financing on a PPP basis,” Africa50 said in a statement.
The Kenyan government approved the development of both lines earlier this year.
In 2022, Africa50 announced a joint development agreement with another India-based company, Power Grid Corporation of India Limited (POWERGRID), to develop two transmission lines in the Kenya Transmission Project under a public-private partnership .
In addition, Africa50 will develop associated infrastructure such as substations including a new 400kV switching station in Loosuk, new 220/33kV substations in Kakamega and substation extensions in Lessos, Musaga and Kibos.
Kenya, which has experienced frequent power outages, expects an increase in peak load demand of 21,075 MW in 2033 from 1,606 MW reported in 2013.
According to official reports, the government has aimed to increase generation capacity by approximately 22,000 MW by the end of 2033.
