CS for energy Opiyo Wandayi visits Olkaria 1 geothermal station in Nakuru county.
Energy CS Opiyo Wandayi has come out to defend the firm against controversy. Adani is seeking a Sh94 billion deal from the government of Kenya in energy projects.
This comes after a court fight involving Adani’s Sh238 billion lease of Jomo Kenyatta International Airport, which was challenged by the Law Society of Kenya and Kenya Human Rights Commission, forcing the High Court to suspend the deal.
During the public function held at Nairobi’s KAWI Complex, Wandayi ensured to drive home that Public-Private Partnerships were the way to go. This, he said, could help Kenya surmount the challenge of financial constraints.
“If structured properly, PPPs ensure value for money,” Wandayi said. “Only those projects that meet rigorous screening will proceed.”
Wandayi hailed the track record of Adani Energy Solution Limited. It has constructed over 21,000 kilometers of transmission lines with a transformer capacity of 61,000 megawatts.
In Kenya, this involves the energy infrastructural development that deals with the development of a 222-kilometer 400 kV Gilgil-Thika-Malaa-Konza transmission line.
Substations in Rongai and a 99-kilometer 220 kV Rongai-Keringet-Chemosit transmission line are also included.
Adani proposes that the company also be allowed to develop a 132 kV Menengai-Ol Kalou-Rumuruti transmission line. This is to be about 98 kilometers with a 132/33 kV substation, Thurdibuoro.
Other bidders for the energy connectivity deal were Africa50 and PowerGrid India. Completion of the projects will fall between 2026 and 2027.
Wandayi explained that Kenya is forced to open its doors to private investment because of fiscal constraints. “We must partner with investors like Adani for these billion-shilling projects,” said Wandayi. “Adani’s infrastructure surpasses that of Kenya, Uganda and Tanzania combined.”
The CS emphasized that the traditional financing falls short. “We have to look for other ways of trying to close the gap in transmission capacity and system reliability,” Wandayi said.
The Adani deal is currently at the Draft Project Agreement level. This covers the financial risk analyses and project sanctions.
KETRACO Managing Director Dr Eng John Mativo said that four steps of the process have been accomplished.
“Negotiations and drafting of the Project Agreement are ongoing,” said Mativo. KETRACO has been relying on DFIs and the government for the transmission line projects since 2008.
