Project Proposal approved
Project Proposal stage.
Energy and Petroleum
Bomet, Kajiado, Kilifi, Kisumu, Nakuru
Kenya Electricity Transmission Co. Ltd. (KETRACO)
The country’s long-term development blueprint, the Vision 2030, aims at transforming Kenya into a globally competitive, newly industrialized, middle income and prosperous country. The growth objectives underpinning the Vision 2030 require a sustainable annual economic growth rate of more than 10% supported by industry, agriculture and services. Efficient, accessible and reliable infrastructure is identified as an enabler for achieving sustained economic growth, development and poverty reduction by lowering cost of doing business and improving the country’s global competitiveness. The electricity sub-sector has adopted a coordinated planning approach with the preparation of a Least Cost Power Development Plan (LCPDP), underpinned by a thorough consultation among stakeholders. ERC as mandated by the Energy Act of 2006, coordinates a stakeholders’ committee to develop and review the electricity subsector plan, the LCPDP. The stakeholders are drawn from all the electricity subsector public institutions. The 20-year rolling plan provides the estimated power demand, the 5 proposed power generation sequence to meet the demand and the necessary network upgrades and expansions required to adequately evacuate the generated power and efficiently meet the demand. Under the LCPDP process, KETRACO has identified priority projects for implementation, constituting a total of about 2,650 km of 132 kV lines, 2,700 km of 220 kV lines, 2,000 km of 400kV lines, and 612 km of 500kV HVDC lines. It is expected that the cumulative length of high voltage lines by 2020 will be over 10,000 km which is projected to increase to over 15, 000 km by 2030. KETRACO’s 2015-2020 Strategic Plan highlights inadequate and unpredictable financing as a challenge and identifies PPPs as a lever to address it. The transmission lines to be built under the PPP model will contribute substantially to the expansion of the network, strengthening of the grid and evacuation of renewable energy. The programme will involve an initial construction of a total of 410km of lines under the PPP model, and if the model is successful, additional lines will be built over the next five years up to a target of 2,000km. The first 3 priority lines have been selected based on the system requirements.
The transmission lines will collectively extend approximately 270km. The proposed lines consist of the following segments: Malindi – Galana (105km) and Bomet – Olenguruone – Rongai (165km). The Private party will be contracted to Design, Finance, Build, Operate and maintain the transmission lines, and thereafter transfer it back to KETRACO.
A preliminary study undertaken for Ketraco showed that the PPP methodology would be suitable for a project of this nature as: the project size is suitable to attract private sector investment and the project is part of a pipeline of projects, and there are thus future opportunities for the private sector. Moreover, experience from other countries has shown that privately financed transmission projects have realized efficiency gains, reduced costs, and opened access to new sources of finance. A greater role of private finance will similarly help ease KETRACO’s financing constraints, and overcome the transmission deficit in Kenya.
Information will be published as soon as it is available.
Project Proposal stage.