PwC allowed to sell Sh15.5bn Kinangop wind power equipment
Wind power turbines in Ngong Hills. South Africa’s Standard Bank loaned Kinangop Wind Park Ltd Sh5.5 billion to buy turbines and other equipment for the failed project. PHOTO | FILE
What you need to know:
AG Githu Muigai had sued Kinangop Wind Park Ltd and its receiver managers PriceWaterHouseCoopers (PwC) to stop the sale of turbines and other equipment meant for setting up the power plant.
The AG has agreed to withdraw the suit as long as PwC sells the property to a company which will take over the project from Kinangop Wind Park.
If PwC is however unable to find a buyer, it will be free to sell the equipment to any willing client.
An out-of-court settlement between Attorney-General Githu Muigai and Kinangop Wind Park Limited has cleared the way for the firm’s receiver managers to sell equipment intended for a Sh15.5 billion power plant in Nyandarua County following the project’s failure to take off.
Prof Muigai had sued Kinangop Wind Park Ltd and its receiver managers PriceWaterHouseCoopers (PwC) to stop the sale of turbines and other equipment meant for setting up the power plant.
The AG has agreed to withdraw the suit as long as PwC sells the property to a company which will take over the project from Kinangop Wind Park. If PwC is however unable to find a buyer, it will be free to sell the equipment to any willing client.
PwC was appointed Kinangop Wind Park’s receiver manager by South Africa’s Standard Bank which wants to recover a Sh5.5 billion loan it had lent the firm to buy turbines and other equipment.
“Muniu Thoiti and Kuria Muchiru of PwC be at liberty to continue with the process of disposing of the assets of Kinangop Wind Park Limited.
“Mr Thoiti and Mr Muchiru will issue a revised invitation for expression of interest to potential bidders for the assets of Kinangop Wind Park and shall for a period of up to six months from the date hereof market and offer the assets to only persons willing to set up the project at the Kinangop site as was to be established by Kinangop Wind Park based on the market price of the assets,” the settlement reads.
Under the deal, the Kenyan government will also provide adequate support to the new contractor in acquiring land and necessary licences for the wind power plant.
Kinangop Wind Park pulled the plug on the Kajiado project after a court ruling barred it from interfering with land that had been earlier allocated to it for the project, following a dispute with locals.
The firm, registered in the Virgin Islands, has also sued Kenya at the International Chamber of Commerce seeking compensation for the project failure.
Spanish firm Iberdrola Ingenieria Construccion has since successfully sued Kinangop Wind Park for compensation of Sh582 million that it had spent while preparing for subcontracted works it was to carry out.
Kinangop Wind Park had subcontracted some works in the botched project to Iberdrola Ingenieria. PwC will have to remit net sale proceeds from the equipment to Standard Bank towards reduction of the loan the lender granted to Kinangop Wind Park.
The receiver manager will also have to give a detailed account of sale proceeds to Kinangop Wind Park, PwC and the AG within 30 days of selling the equipment.
“In the event there is no party willing to implement the project at the Kinangop site at the market price within the six month timeline contemplated above, Mr Thoiti and Mr Muchiru will be at liberty to offer and dispose the assets of Kinangop Wind Park without any limitation,” the out-of-court deal further reads.
Justice Grace Nzioka on Tuesday adopted the deal as a court order after verifying the authenticity of the document filed in court and confirming from all parties that the dispute has been settled.
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