French firm EDF has submitted a proposal seeking to construct four power transmission projects in Kenya on a public-private partnership (PPP) arrangement.
EDF is a French multinational electric utility company owned by the French government.
The EDF proposal is one of three privately initiated proposals (PIPs) that the Kenya Electricity Transmission Company (Ketraco) is considering for the construction of high-voltage transmission lines and substations.
Ketraco has also received PIPs from Adani Energy Solutions Limited, which is a subsidiary of the Adani Group, and a joint venture between Africa50 and PowerGrid of India.
EDF proposes to construct the 220kV Kiambere-Rabai and 70-kilometre 132kV Mutomo-Makindu line.
Ketraco said the lines will improve the reliability of supply and extend the high voltage network at Mutomo.
It also wants to build the 45 kilometre Malaa-Thika Road/Tatu City line, Voi 400/132kV substation, and 132kV intertie to the existing network.
The projects are scheduled for completion between 2029 and 2030 should EDF reach a deal with Ketraco.
Ketraco has, however, not revealed the size of EDF’s bid and the financial terms.
Kenya is turning to PPPs to accelerate investment in the country’s aging and constrained transmission infrastructure. The government estimates that there is a financing gap of Sh650 billion to undertake these projects, which are critical to expanding and stabilising the power supply.
“Currently, there is a looming financial pressure piling on the exchequer. Public debt has reached an all-time high due to external borrowing, creating a significant challenge for financing transmission infrastructure,” Ketraco managing director John Mativo said on Monday.
Ketraco was formed in December 2008 to accelerate the development of power transmission lines in the country. The lines previously used to be built by Kenya Power, which is the country’s main power distributor.
Ketraco has been financing its projects through taxes, loans, and grants, but this financing model has become limited in light of the constrained public fiscal space, necessitating the pivot to PPPs.
In one of the PPP deals, Adani Energy Solutions Limited, a subsidiary of the Adani Group, will build three high-voltage power transmission lines and two substations.
Ketraco is also negotiating with Africa50 and PowerGrid of India for the construction of two power lines under the PPP framework.
Both proposals are currently being subjected to public participation even as Ketraco continues to negotiate with the companies.
“Adani and Africa50 proposals are still in the negotiation stages. Ketraco has not signed any contracts/agreements with the mentioned private companies,” said Dr Mativo.
