Nation Reporter
24 August 2007
Nairobi — Kenya Power and Lighting Company has signed a Sh1.8 billion contract with a Swedish firm that could help it effectively manage energy distribution. The agreement with ABB AB will boost installation of optical fibre communication channels in the main transmission lines. It will also allow the listed power company to sell extra communications capacity to interested investors in broadband services.
Work begins immediately and be completed by November 2009.
Speaking during the signing ceremony at the firm's Stima Plaza offices, KPLC chief executive Don Priestman said the contract financed by the European Investment Bank, was the largest under the $153 million Energy Sector Recovery Project. The project seeks to raise the efficiency, reliability and quality of Kenya's power supply, and boost access to electricity.
The optical fibre channels will replace the existing system, which is aged and obsolete, the company said in a statement.
However, Mr Priestman regretted that the project was delayed by unsuccessful bidders' appeals since November 2006.
He added that numerous KPLC projects were held up due to similar strategies by unsuccessful bidders, although the power firm is yet to lose any such appeal yet.
The project paves the way for KPLC to become a major player in the telecommunications sector, as it involves dramatic reinforcement of the company's communications system as well as installation of a fiber optic network throughout the transmission system.
The various programmes under the ESRP are financed by the French Development Agency, European Investment Bank, Nordic Development Fund, International Development Association and power distributor.
The Government had previously said that it was looking to boost communication services in the country by allowing firms like KPLC and Telkom Kenya to sell their extra capacity to investors
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