Ketraco on the spot over Sh38.7 billion power lines delays

The Kenya Electricity Transmission Company (Ketraco) is on the spot over delays in completing power lines worth Sh38.7 billion due to termination of contracts, way-leaves acquisition and contractor financial challenges.

Auditor-General Edward Ouko said Ketraco has significantly delayed completion of five major projects under implementation in the years to June 2015.

Key among them is the termination of a Sh17.3 billion contract for construction of 430-kilometre Loiyangalani-Suswa power line project after the contractor went bankrupt.

The project entails construction of a 400KV double circuit transmission line that will evacuate electricity from the 300-megawatt Lake Turkana Wind Power Plant in Loiyangalani to Suswa Sub-station.

The project, which was under implementation by a Spanish contractor is behind schedule having commenced in August 2014 and was expected to be completed in October 2016.

Mr Ouko said by the time of concluding the audit, only 35 per cent of the project was done.

“According to the management, the delays arose from termination of the initial contractor due to bankruptcy. However, it is not clear whether management, through prescribed procurement procedures, satisfied themselves that the initial contractor was technically and financially qualified for the job before award of the contract,” Mr Ouko said.

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The Nairobi Ring project, which entails construction of a transmission line from Suswa to Isinya, together with five sub-stations at Suswa, Kimuka, Isinya, Athi River and Komarock was behind schedule.

The project, which is under implementation by four contractors at a combined contract price of approximately Sh10.5 billion, commenced in May 2012 with an initial completion date of November 2014.

Mr Ouko says at the time of audit, the five sub-stations were yet to be completed and that the management attributed the delay to the termination of the initial contractor.

Another power transmission system project worth Sh7.2 billion is running behind schedule as at the time Mr Ouko audited Ketraco books of accounts for the year to June 2017.