Olkaria’s 280MW geothermal unit to be ready next April

KenGen shareholders tour the Olkaria geothermal plant in the past. The new plant is expected to ready in a year’s time. FILE

What you need to know:

  • Sinopec International began construction last December and has laid 3,000 pipe support out of an estimated 8,000.
  • It has also covered 10 per cent of the 100km of pipeline
  • The Chinese firm won the Sh11.5 billion ($140 million) contract last year.

The Sh11.5 billion Olkaria geothermal power project is set for completion by April next year, adding 280MW to the national grid.

Sinopec International began construction last December and has laid 3,000 pipe support out of an estimated 8,000.The contractors have also covered 10 per cent of the 100km of pipeline, said Sinopec International Petroleum Service Corporation deputy director Huang Guo in a response to the Business Daily questions.

“At present, construction work is ongoing to connect all the steam wells to the geothermal power station, work that will be completed by April 2014,” said Mr Guo.

Sinopec has since December 2012 been putting up steam pipes and related systems to deliver steam from geothermal wells to Olkaria-1’s Unit-4 and Unit-5 and Olkaria-4 Power plants, each with a capacity of 140MW.

“There are around 100km of pipeline and we have now finished about 10km. There are a total of around 8,000 pipe supports, and we have now finished around 3000,” said Mr Guo.

Among the challenges the company has faced in the project is the poor state of the road leading into the generation areas and clearing construction materials from the port of Mombasa.

Sometimes, the official said, it takes up to 14 days to release the goods from the port. The contractor has now extended working hours to cater to the delays and remain within the completion date of April next year.

Mr Guo said if there were changes in the drawings or there was an additional work, the cost would increase beyond the projections.

“If the work is increased, the cost of the project will be increased. Or, if the construction drawing changes from that in the bid document [costs would rise],” said Mr Guo.

The project has also been dogged by controversies, including allegations of unfair labour practices like claims of failing to recruit residents. Sinopec said it has been able to address the concerns, leading to cordial relations.

“Skills or labour that can be found from the local community is employed without Sinopec seeking such labour from outside. Both the Chinese and local employees work together,” said Mr Guo.

He said the contractor had only brought in workers with special skills to meet the standards of the tender by power generator KenGen.

“All the engineers, designers and specialty welders are Chinese for the simple reason that Sinopec has to deliver a product that must meet specific quality standards as dictated by KenGen.”

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