Nairobi — The governments of Kenya and Finland have signed an agreement of cooperation to upgrade the Juja Road electricity transmission substation.
The Finnish government will contribute Sh1.7 billion, divided between interest payments on the concessional credit - amounting to a maximum of Sh1.1 billion - and a grant portion of the commercial contract amounting to Sh595 million.
The upgrading will see Juja Road electricity transmission improved to increase the station's reliability, security, operational flexibility and transformational capacity to connect more customers into the grid as well as to improve general quality of the power.
The upgrading of the substation will improve the lives of approximately 800,000 Nairobi residents living in areas such as Mathare Valley, Kibera and Mukuru by providing more stable and more reliable power not only for the industrial areas of Nairobi but also for many hospitals and schools.
The Juja Road upgrading project includes a commercial contract and a loan agreement with the contribution of the government of Finland supporting both of these under the concessional credit scheme.
The commercial contract is between the Kenya Power and ABB Power Systems while the loan agreement is between the National Treasury of Kenya and the Nordea Bank Finland.
"The current technology at the station dates from 1952; the new technology will be provided for the Kenya Power by ABB Power Systems," said Tiia Haapaniemi Programme Officer Trade and Political Affairs at the Embassy of Finland.
She says the improvements of the Juja Road substation will have a positive impact on the development of the greater Nairobi area as well as on poverty reduction.