The government of Kenya has signed a joint-agreement with the Indian government owned Power Grid Corporation of India Limited (POWERGRID), and Africa50, the pan-African infrastructure investment platform to develop the Kenya Transmission Project on a public-private partnership (PPP) basis.
The project entails the development, financing, construction, and operation of the 400kV Lessos – Loosuk and 220kV Kisumu – Musaga transmission lines under a public-private partnership (PPP) framework. Once completed, the project will be the first Independent Power Transmission (IPT) in Kenya and will set a reference point in Africa as the first financing of transmission lines on a PPP basis.
The project is expected to improve both the supply and reliability of power transmission in Western Kenya and further create a demonstration effect to help increase private sector investments into the expansion of Africa’s power transmission networks, which is critical to bridging the continent’s electricity access gap.
“POWERGRID is pleased to partner with Africa50 in undertaking development of the first PPP mode transmission project in Kenya. Transmission plays an important role in bringing efficiency in the entire electricity supply chain. A robust transmission network not only imparts reliability and security to the electricity grid but also allows non-discriminatory access to buyers and sellers which spurs the competition that results into competitive electricity prices to ultimate consumer,” said Shri K. Sreekant, the Chairman and Managing Director of POWERGRID.
“POWERGRID hopes that the present transmission project in Kenya shall serve as a Model for undertaking more such projects in Kenya as well as other African countries. POWERGRID with its rich technical and managerial experience in undertaking transmission systems under PPP mode shall be pleased to be associated in this journey” added Sreekant.
In this development partnership, POWERGRID, leveraging its electricity transmission expertise will provide technical and operational know-how to the project, while Africa50 will bring its project development and finance expertise and will act as a bridge between the Kenyan government and private investors.
The two parties said the signing of this agreement underscores their commitment to continue to dedicate resources to accelerate development activities on the project until financial close.
Commenting on the signing, the CEO of Africa50 Alain Ebobissé said, “We are very pleased to partner with the Government of Kenya and POWERGRID to implement this important and pioneering project in one of our shareholder countries. In the past few years, a lot of emphasis has been placed on attracting private investments in energy production infrastructure in Africa. It is time to also focus on catalyzing private investment into the development of power transmission networks across Africa as these are a critical link to improving electricity access, especially in underserved communities”.
