Gitonga Marete
9 July 2009
Nairobi — The Kenya Electricity Generating Company (KenGen) is putting up a third power generating plant at Kipevu, Mombasa at an estimated cost of 10 million euros (Sh1.05 billion).
The plant, expected to generate 120 megawatts of electricity which will be injected into the national grid to boost electricity supply will be funded by proceeds from the company's proposed Sh15 billion Public Infrastructure Bond Offer (PIBO), Business Development and Strategy director Albert Mugo said on Thursday.
"We have already submitted our proposal to the Capital Markets Authority (CMA) and are optimistic that it will be approved to enable us raise the capital required to finance the project," he said.
He was speaking when he took 21 bidders of the project on a tour of the site for the proposed plant to be known as Kipevu I I I. The contract will be awarded to the successful bidder in October this and construction completed by October 2010.
"The proposed plant will help KenGen expand generation capacity and diversify power sources in line with our business strategy," Mr Mugo said, adding that the company had also invested in wind power generation plant at Gong hills which was producing 5.1 megawatts of electricity.
"This will also enable us ensure there is additional capacity to deal with rising demand anticipated to be eight per cent annually," he said.
Due to shrinking water levels at Masinga and other dams, power generation is expected to drop and consumers have been warned to brace themselves for higher power tariffs.
Commenting on the PIBO, Mr Mugo said the company would announce features and details of the proposal once it received regulatory approvals.
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