Africa50, the pan-African infrastructure investment platform and Power Grid Corporation of India Limited (POWERGRID) signed a joint development agreement to develop the Kenya Transmission Project on a public-private partnership basis. The project entails the development, financing, construction, and operation of the 400kV Lessos – Loosuk and 220kV Kisumu – Musaga transmission lines under a public-private partnership (PPP) framework.
Once completed, the project will be the first Independent Power Transmission (IPT) in Kenya and set a reference point in Africa as the first financing of transmission lines on a PPP basis. This project will also improve both the supply and reliability of power transmission in Western Kenya. It will further create a demonstration effect to help increase private sector investments into the expansion of Africa’s power transmission networks, which is critical to bridging the continent’s electricity access gap.
In this development partnership, POWERGRID, one of the world’s leading electric transmission utility companies will provide technical and operational know-how to the project, while Africa50 will bring its project development and finance expertise and will act as a bridge between the Kenyan government and private investors.
The signing of this agreement underscores Africa50 and POWERGRID’s commitment to continue to dedicate resources to accelerate development activities on the project until financial close.
Commenting on the signing, the CEO of Africa50 Alain Ebobissé said “We are very pleased to partner with the Government of Kenya and POWERGRID to implement this important and pioneering project in one of our shareholder countries. In the past few years, a lot of emphases has been placed on attracting private investments in energy production infrastructure in Africa. It is time to also focus on catalyzing private investment into the development of power transmission networks across Africa as these are a critical link to improving electricity access, especially in underserved communities”.
Signing on behalf of POWERGRID, the Chairman and Managing Director, Shri K. Sreekant, said, “POWERGRID is pleased to partner with Africa50 in undertaking the development of the first PPP mode transmission project in Kenya. Transmission plays an important role in bringing efficiency to the entire electricity supply chain. A robust transmission network not only imparts reliability and security to the electricity grid but also allows non-discriminatory access to buyers and sellers which spurs the competition that results in competitive electricity prices to the ultimate consumer. POWERGRID hopes that the present transmission project in Kenya shall serve as a Model for undertaking more of such projects in Kenya as well as other African countries. POWERGRID with its rich technical and managerial experience in undertaking transmission systems under PPP mode shall be pleased to be associated in this journey”.
This article was written by Bob Koigi and initially published at africabusinesscommunities.com. You can start earning money by becoming our Independent Reporter or Contributor. Contact us at IR@downtownafrica.com
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