Kenya awards Chinese firms USD93M contract to complete transmission line linking Lake Turkana Wind Power to the national grid

Kenya has awarded a consortium of Chinese companies a Sh9.6 billion ($93m) contract to complete the transmission line linking Lake Turkana Wind Power to the national grid by August 31 as it struggles to race against time to complete the full operations of project and avoid further penalties, bring down the cost of electricity and light up one million homes.

This is after Spanish firm Isolux contract was revoked last year after the firm was placed under receivership over debt and liquidity challenges.

“The government is discussing with the developers to work with the new August 31 timeline, not June. That’s why the contractors have committed to pay the fines themselves should there be delays of their making,” said Ketraco managing director Fernandes Barasa.

The 428-kilometre power line is currently 70 per cent completed, according to Kenya Electricity Transmission Company (Ketraco) which signed the contract with the Chinese companies on Tuesday.

The country has already been fined Sh5.7 billion ($55m) for the delays of the high-voltage line (400 kilovolts) and the ministry of Energy early this month said further delays beyond June would attract a Sh1 billion ($9.7m)fine monthly to be absorbed by taxpayers through their power bills.

The Chinese firms tasked with completing the project are NARI Group Corporation and Power China Guizhou Engineering Company, have committed to pay a fine of Sh1.3 billion (€10 million) per month should they fail to meet the August 31 deadline.

The contractors have been involved in other local works in Olkaria steam fields, Naivasha.

Lake Turkana Wind Power Project is the single largest private sector investment in Kenya’s history and once completed, it will provide 310 megawatts of power to the grid, approximately 18 per cent of Kenya’s installed capacity.