The proposed site for a cement factory that Cemtech plans to build at Serbit in West Pokot. FILE
What you need to know:
Construction of the plant is expected to begin on August 14, according to regulatory application documents filed by the firm.
Cemtech, the Indian cement firm majority-owned by the Sanghi Group, is set to build a 30-megawatt coal-fired power plant for its proposed factory in West Pokot County.
Construction of the plant is expected to begin on August 14, according to regulatory application documents filed by the firm.
“The proponent (Cemtech Limited) is proposing to construct a coal-fired power plant that intends to generate 30-megawatt of electrical energy of which 15 megawatts will run the operations of the proposed cement manufacturing plant, while the remaining 15 megawatts will be uploaded to the national grid,” said the National Environment Management Authority (Nema) in a gazette notice published on Friday.
The entire cement production project is will cost $175 million (Sh15.2 billion). On completion in 2015, it is expected to produce 1.5 million tonnes of cement annually.
Completion of the plant and production have been delayed by the process of securing mining rights, land titles, environmental reports and an assessment on whether the limestone deposits were commercially viable for at least 50 years.
The company also spent $1.6 million (Sh140 million) on compensation to private land owners displaced by the project. Top officials of the Indian conglomerate are expected to jet in this week to meet local leaders ahead of commencement of work on the construction site.
“The directors of Sanghi group shall once again visit Kenya on August 4 and 5 to meet the relevant officials of the new government and the Pokot leaders to discuss all spheres pertaining to the commencement of construction at site as from August 14 until the commissioning of the cement/captive power plant,” Cemtech director Rajesh Rawal said in a statement highlighting progress of the project.
Mega infrastructure projects in the region are creating a ready market for cement makers, who are in turn increasing capacity to meet expected demand from the construction of roads, dams and ports.
The real estate sector is projected to pick up in tandem with borrowing rates coming down, which should see building activities rise, boosting demand for cement.
Data from the Kenya National Bureau of Statistics shows cement production increased to 382,217 metric tonnes in May from 351,178 metric tonnes in April, a nine per cent rise.
Over the same period cement consumption increased to 305,922 metric tonnes from 291,795 metric tonnes, a five per cent increase.
Production and consumption, however, grew marginally last year from 2011, which was a reflection of overall economic growth decelerating ahead of the March General Election.
Cement production last year stood at 4.64 million metric tonnes, a four per cent increase from 4.48 million metric tonnes in 2011 while consumption marginally grew by two per cent to 3.94 million metric tonnes from 3.87 million metric tonnes in the same period.
Completion of the factory is expected to add to this capacity but Cemtech has said it will also target the Uganda and South Sudan markets. Nema has given the public one month to raise concerns on the coal-powered project.
“The National Environment Management Authority invites members of the public to submit oral or written comments within thirty (30) days from the date of publication of this notice,” said Friday’s Kenya Gazette.
