The Kenya Electricity Transmission Co. said it’s still in talks with Adani Energy Solutions Ltd. for the construction of three power lines, contradicting a presidential adviser who announced that two companies including the Indian firm had already been awarded deals for as much as $1.3 billion.
Adani expressed interest last year to construct 388 kilometers (241 miles) of high-voltage transmission lines, according to the agency, which is known as Ketraco. Initially, the project cost was about $1.01 billion, but the bid was revised to $736.5 million last month, according to Anthony Musyoka, a general manager in-charge of project development at Ketraco.
“There are still many boxes to tick,” Chief Executive Officer John Mativo said Monday at a meeting with stakeholders in the capital, Nairobi. “We will get the best deal for this country.”
Adani didn’t immediately respond to a request for comment.
News of the potential deal comes after Kenya confirmed the India-listed conglomerate is seeking another 30-year concession to run the nation’s biggest airport. Many Kenyans were angered by that proposal, saying it flouted procurement laws and was shrouded in secrecy to avoid scrutiny.
Transport Secretary Davis Chirchir has told lawmakers that privately initiated proposal is still going through an evaluation process.
Kenya has a financing gap of $5 billion, or about $250 million annually, for power lines and can no longer rely on the National Treasury to fund new links, Mativo said. This year alone, it’s suffered two national outages, he said.
“We have a grid that has improved, but it’s not where it’s supposed to be,” he said.
Adani’s proposal includes construction of a new 206 kilometer Gilgil-Thika-Malaa-Konza line, another 95 kilometers linking Rongai-Keringet-Chemosit and approximately 98 kilometers for the Menengai-Ol Kalou-Rumuruti conduit.
Adani is looking at an 11.5% cost of debt and a 16% equity internal rate of return. Ketraco, for its part, wants a lower 9.5% cost of debt and 14% IERR, according to Mativo.
In a separate arrangement, a joint venture of Africa50 — an infrastructure investment unit of the African Development Bank – along with state-backed Power Grid Corp of India, have submitted a proposal to build 273 kilometers of power lines in Kenya.