Adani Energy Solutions Limited (AESL) provided further details on its Kenyan subsidiary on Friday, November 8, following the announcement of a significant project agreement with the Kenyan government.
The Ministry of Energy, through Cabinet Secretary Opiyo Wandayi, disclosed that the government had signed a sh95.68 billion deal with AESL, facilitated through the Kenya Electricity Transmission Company Limited (KETRACO) under the Public-Private Partnership (PPP) program.
Wandayi’s statement confirmed the signing of the project agreement on October 9, 2024, saying, “I am pleased to announce the successful signing of the Project Agreement between KETRACO and Adani Energy Solutions Limited.”
As part of its expansion strategy in Kenya, AESL introduced its new subsidiary, Progressive Grid Networks Ltd., which will focus on exploring opportunities in power transmission projects across the country.
According to a regulatory filing, the subsidiary has a share capital of sh10 million, divided into 10,000 ordinary shares with a nominal value of sh1,000 each.
AESL will hold 100% equity in the subsidiary, granting it full ownership.
While the subsidiary has not yet begun operations, the newly signed deal will see AESL oversee the maintenance of key electricity transmission lines and substations in Kenya for the next 30 years.
The project involves several major infrastructure upgrades, including:
- A 400 kV transmission line stretching 208.73 km from Gilgil to Thika to Konza.
- A 220 kV line running 99.98 km from Rongai to Keringet to Chemosit.
- A 132 kV transmission line between Menengai and Rumuruti, along with an associated substation.
- A new 132/33 kV substation to be built in Kisumu.
Despite facing significant public criticism, Adani’s energy arm secured the deal, which aims to improve Kenya’s electricity infrastructure.
The agreement has sparked concerns among Kenyans, with some, including Kisii Senator Richard Onyonka, questioning the transparency of the deal and the potential impact on taxpayers and electricity prices.
Critics worry that the partnership could lead to higher costs for consumers.
In response to these concerns, President William Ruto has urged Kenyans to embrace PPP projects, emphasizing that they offer a means for Kenya to develop its infrastructure without overburdening taxpayers.
According to Ruto, such partnerships are crucial for driving progress while ensuring that the country benefits from foreign investment.
The deal is seen as a significant step in enhancing Kenya’s power transmission network, but it remains to be seen how the public will respond as the project progresses.
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