Economy

Sh22 billion Lamu coal power plant line takes shape

power line

A high-voltage power line. FILE PHOTO | NMG

Kenya Electricity Transmission Company (Ketraco) plans to start construction of a high-voltage power line from proposed Lamu coal-fired plant in July subject to Treasury agreeing funding terms with Chinese lenders.

The 520-kilometre, 400-kilovolt (kV) line will cost an estimated $220 million (Sh22.28 billion) and take 36 months to complete, Ketraco managing director Fernandes Barasa said.

About Sh4.5 billion of the funds will cover compensation costs for wayleaves, he added.

The line is expected to evacuate 960 megawatts (MW) of electricity from the proposed 1,050MW coal-fired plant from Lamu to Nairobi through Kitui.

Construction of the $2 billion (Sh202.52 billion) plant, initially planned to start in September 2015, has been delayed by prolonged controversies, including environmental concerns and compensation disputes.

Mr Barasa said the State-owned electricity transmission system operator was, however, pushing ahead with building of the line to avoid a repeat of costly delays witnessed due to delayed evacuation of power from the 310MW Lake Turkana Wind Power farm.