Indian billionaire Gautam Adani-led conglomerate has signed a pact to build and operate key electricity transmission lines in Kenya for 30 years, the African nation's Cabinet Secretary for Energy Opiyo Wandayi said. 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.
AESL will develop three transmission lines and two substations.
Adani Group was previously talking to the Kenyan government to operate its main airport but the proposal has been put on hold following protests.
