Power Grid ties up with Africa50 to develop transmission project in Kenya
- The project entails the development, financing, construction, and operation of the 400kV Lessos - Loosuk and 220kV Kisumu - Musaga transmission lines under a PPP framework
Power Grid Corporation of India Ltd has signed a joint development agreement with Africa50, a pan-African infrastructure investment platform to continue to develop the Kenya Transmission Project on a public-private partnership basis.
The project entails the development, financing, construction, and operation of the 400kV Lessos - Loosuk and 220kV Kisumu - Musaga transmission lines under a PPP framework. Once completed, the project will be the first independent power transmission (IPT) in Kenya and will set a reference point in Africa as the first financing of transmission lines on a PPP basis, said a Power Ministry statement.
The project will also improve both the supply and reliability of power transmission in Western Kenya and further create a demonstration effect to help increase private sector investments into the expansion of Africa’s power transmission networks, which is critical to bridging the continent’s electricity access gap.
State-run Power Grid will provide technical and operational know-how to the project, while Africa50 will bring its project development and finance expertise and will act as a bridge between the Kenyan government and private investors.
Chairman and Managing Director of Power Grid, K. Sreekant, said that transmission plays an important role in bringing efficiency in the entire electricity supply chain and a robust transmission network not only imparts reliability and security to the electricity grid but also allows non-discriminatory access to buyers and sellers which spurs the competition that results into competitive electricity prices to ultimate consumer.
"Power Grid hopes that the present transmission project in Kenya shall serve as a Model for undertaking more such projects in Kenya as well as other African countries," he added.
The CEO of Africa50, Alain Ebobisse said that in the past few years, a lot of emphasis has been placed on attracting private investments in energy production infrastructure in Africa. "It is time to also focus on catalyzing private investment into the development of power transmission networks across Africa as these are a critical link to improving electricity access, especially in underserved communities," he said.
Africa50 is an infrastructure investment platform that develops and invests in infrastructure projects, catalysing public sector capital, and mobilising private sector funding, with differentiated financial returns and impact. Africa50 currently has 31 shareholders, comprised of 28 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib.
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Business NewsIndustryEnergyPower Grid ties up with Africa50 to develop transmission project in Kenya
First Published:12 Jan 2022, 09:56 PM IST
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