Chinese get Sh14bn power line contract

What you need to know:

  • China CAMC Engineering will build the 285-kilometre line and associated sub-stations between the two towns over a two-year period, the firm said in regulatory filings.
  • Ketraco plans to put up an additional 7,000 km of electricity transmission lines in five years to cut reliance on diesel-generated power in areas that are not covered by the national grid.
  • The projects are financed by the exchequer, development partners, financial institutions and public-private partnerships (PPPs).

The Ministry of Energy has awarded a Chinese firm a Sh13.6 billion contract to construct a high-voltage power transmission line between Garissa and Isiolo, firming up a trend where Beijing firms are emerging clear favourites in big contracts.

China CAMC Engineering will build the 285-kilometre line and associated sub-stations between the two towns over a two-year period, the firm said in regulatory filings.

“The project involves constructing a new 285km 220KV electricity transmission line and three converting stations,” said the Chinese firm in the statement.

The project is funded through a loan from the Export-Import Bank of China.

John Mativo, Ketraco’s senior technical adviser said the new infrastructure would boost power supplies along the Lamu Port South Sudan Ethiopia Transport corridor from Garissa, Garba Tula and Isiolo.

“The project also allows wind and solar power plants to be constructed in that rich renewable energy area and (creates) alternative paths for supply of power to Isiolo and Garissa by reinforcing the grid,” said Mr Mativo.

Ketraco plans to put up an additional 7,000 km of electricity transmission lines in five years to cut reliance on diesel-generated power in areas that are not covered by the national grid.

Ketraco is implementing projects totalling about 5,000km of transmission lines and regional power interconnectors of different voltage levels expected to be completed in the next three to four years.

The transmission infrastructure projects will facilitate electricity evacuation from generating stations, reinforce the grid network for increased capacity and reliability as well as provide redundancy.

A weak power transmission and distribution infrastructure, high cost of power, low per capita power consumption and low countrywide electricity access are some of challenges facing the power subsector.

The transmission projects are expected to enhance capacity for evacuating power from generating plants and build inter-connectors to facilitate regional power trade with neighbouring countries. 

The projects are financed by the exchequer, development partners, financial institutions and public-private partnerships (PPPs).

Chinese firms have gobbled up most of the large projects ranging from highway construction to Standard Gauge Railway mainly thanks to large financing muscle by Beijing.