Group seeks staff for coal-fired power plant
What you need to know:
- The Sh174 billion project is expected to add 960 megawatts of electricity to the national grid. A developer will enter into an electricity purchase agreement with Kenya Power lasting for a minimum of 25 years.
- This is the country’s first coal power plant and is part of a plan by the government to increase electricity generation capacity by 5,000 megawatts by the end of 2016.
Gulf Energy and Centum Investment Company have begun recruiting staff for the development of a coal-fired power plant in Lamu County.
The consortium emerged top in a tender evaluation conducted by the Ministry of Energy last month, and was due to be awarded the deal.
The High Court has, however, stopped it until a ruling on objections to a case filed by losers is delivered on November 21.
“A consortium consisting of Gulf Energy Ltd and Centum Investment Company Ltd has been awarded by the government of Kenya the right to develop and operate a coal-fired power plant to be set up at Manda Bay, Lamu County … The project company now invites applications from dedicated professionals to take charge as the chief finance officer to assist the project development team,” read a notice published Wednesday.
High Court Judge Mumbi Ngugi last month warned parties against entering into binding deals before the ruling. “I will deliver a ruling on November 21. In the meantime, there will be no binding agreements entered into pending the ruling of the court,” she said.
EVALUATION FAULTED
The Sh174 billion project is expected to add 960 megawatts of electricity to the national grid. A developer will enter into an electricity purchase agreement with Kenya Power lasting for a minimum of 25 years.
The two bidders who lost to the Centum-Gulf Energy consortium — Shanghai Electric Power Company and HCIG Energy — faulted the process used by the tender evaluation team, saying it favoured the winner.
Chairman of the committee Simon Ngure said Gulf Energy and Centum had shown that they will bill the lowest fuel cost charge even as lawyer Ahmednasir Abdullahi representing Shanghai insisted that the formula was tilted to favour the winning consortium.
This is the country’s first coal power plant and is part of a plan by the government to increase electricity generation capacity by 5,000 megawatts by the end of 2016.