The Kenyan government last week inked a Sh95.68 billion ($736 million) with the Indian conglomerate group Adani Energy Solutions Limited (AESL) after a four-month negotiation stint.
The 30-year deal between Kenya Electricity Transmission Company Limited (Ketraco) and AESL entails the development and maintenance of key transmission lines and substations across the country, after which the project and all its assets will be handed over to Ketraco.
The majority of the Kenyan population combative toward the deal between the government and the Indian owned company, citing their concerns about the transparency of the group and the potential risks to Kenya’s sovereignty.
Ketraco, through a public announcement on the details of the agreement deal between it and AESL accentuated how Kenya would reap big through the social and economic benefits of the project.
BENEFITS OF THE PROJECT
AESL plans to develop the 400-kilovolt Gilgil through Thika and Malaa to Konza transmission line to stretch 208.73 kilometres setting up new substations in Gilgil, Thika, and Malaa.
Ketraco says that the project will foresee the construction of a second 220-kilovolt line from Rongai to Keringet and Chemosit which will cover 99.98 kilometres, with new substations at Rongai, Keringet, and Chemosit.
A third 132-kilovolt transmission line will be constructed from Menengai through Ol Kalou to Rumuruti and extend for 89.89 kilometres. A new substation will be constructed at the line.
The Indian firm also plans to set up a 132/33kilovolt substation at Thurdibuoro in Kisumu County.
JOB AND BUSINESS CREATION
The AESL project will source its labor locally with KETRACO stating that majority of Kenyans are set to gain employment during the construction and operations phase.
Ketraco says that Kenyans are set to be employed during the construction and operations phase by AESL. The million-dollar project will also source its labour, which shall also source for goods and services from the Kenyan market.
COMPENSATION
As per the Energy ministry, all Project Affected Persons (PAPs) will be compensated for the loss of their assets, which will include any damages to crops and trees.
“They will be compensated at a market value for limited loss of use of land for their parcels that will be affected by the transmission lines. In addition, any loss of business and loss of income will be compensated as part of livelihood restoration programmes” Ketraco said.
The parastatal also assures that all persons displaced by the project will be fully resettled, a move that aims at improving the livelihood of the PAPs.
RELIABLE POWER SUPPLY
Ketraco stated that the project will ensure reliable and widespread access to power that will support Kenya’s growing economy and development goals.
The terms and conditions stated in the Handback Requirements between Ketraco and AESL require that the infrastructure must be returned to the parastatal in good working conditions, fully meeting the operational and maintenance standards.
“At the end of the project term, AESL will transfer the project assets to Ketraco at no cost and with the remaining useful life of more than ten years. This will enable Ketraco to continue to provide reliable transmission services at little cost to cover for operation maintenance, thus benefiting the public,” Ketraco said.
The Energy entity also mentioned about an ‘independent expert’ that will be jointly appointed to monitor and manage the project’s implementation.
The agreement imposes certain obligations to AESL which include monthly construction progress reports, monthly operations reports, yearly financial reports, and local content reports.