9 October 2008
Nairobi — A power plant will be constructed at Rabai at the cost of Sh12 billion by an independent power producer and is set to be completed by December 2009.
The plant will be located 20 kilometres from Mombasa town.
The diesel powered electricity plant is the single largest power project by the independent producers.
Once completed, the plant will add 90MW to the national grid through a 20 year power purchase agreement signed with Kenya Power &Lighting Company, and it has capacity to supply 400,000 households with electricity.
The lead sponsors are Aldwych International Limited and Burmeister& Wain Scandinavian Contractor AS (BWSC).
The project is funded by a syndicate of leading European development finance institutions that include Emerging Africa Infrastructure Fund, FMO, French Development Agency (Proparco) and German Development Agency (DEG) and European finance partners.
The project was awarded on a build-own-operate-transfer basis through international competitive bidding process.
KPLC managing director Eng. Joseph Njoroge said the plant would be more efficient than those existing since they would use modern technology.
"The project has come at the right time when we are constrained in supply and would ask the owners to fast-track the construction to provide electricity before the end of next year." Eng. Njoroge said.
The escalating cost of fuel at international market has partly been blamed for the high electricity bills in the country causing outcry from the domestic users and manufacturers.
However, Eng. Njoroge said the plant could also use natural gas which is cheaper, once an arrangement to purchase the commodity from Tanzania is finalised.
BWSC executive officer, Soren Barkholt however complained that the preparations for the construction had taken too longer than initially planned.
"Every time we build a power station we learn something new and have to cope with challenges of different kinds. But I must admit that I have never in my long career faced so many challenges before coming to a realisation of a project as this one."
Signing the documents on Thursday at Kenyatta International Conference Centre, Aldwych managing director Mark Fitzpatrick said they intend to make it the most efficient thermal fuel plant in the country.
" Following commencement of commercial operations, BWSC and Aldwych have forecasted savings of billions of money as the plant will replace some old and more costly emergency diesel plants that are currently being used to bolster the constrained Kenya power supply." he said.
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