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Adani Energy Partners with Kenya

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Adani Energy Partners with Kenya
Adani Energy Partners with Kenya

According to Kenya’s Cabinet Secretary for Energy, Opiyo Wandayi, an Indian billionaire Gautam Adani-led group, has inked a deal to construct and run major energy transmission lines in the country for 30 years.

Adani Energy Solutions Ltd signed a project agreement with the Kenya Electricity Transmission Company Ltd (Ketraco).

“This agreement marks the beginning of a transformative initiative to develop, finance, construct, operate, and maintain key transmission lines and substations across Kenya,” he said in a press statement.

Kenya faces persistent power blackouts and the projects awarded to Adani are to upgrade the country’s transmission infrastructure to ensure reliable power.

“As part of this infrastructure development, the project company (AESL) will raise all the funding in the form of debt and equity that will be repaid over the 30-year period of the project agreement,” he said. “The project cost, that is currently estimated at Kenyan shilling 95.68 billion (USD 736 million) will be crystallised through a competitive bidding process that will be jointly handled by Ketraco and AESL.” The Government of Kenya will not incur any financial expenditure on the project.

“AESL will manage the transmission lines for 30 years, ensuring long-term sustainability and efficiency, and thereafter transfer the project and all its assets to Ketraco,” he said.

Adani Group was previously talking to the Kenyan government to operate its main airport but the proposal has been put on hold following protests.

Wandayi said Ketraco is engaged with a consortium of Africa 50 – an infrastructure investment platform – and Power Grid of India for two separate transmission lines.

“This project underscores the Government of Kenya’s commitment to forming strategic partnerships that align with the country’s development goals. The collaboration with AESL ensures long-term management and maintenance of these vital infrastructure assets, securing the future of Kenya’s energy supply,” he added.

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Source: Business Standard

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