Kenya awards US$1.3B power concession to Adani Group and Africa50

KENYA – Kenya Electricity Transmission Company (KETRACO) has entered into a public-private partnership (PPP) with India’s Adani Group and Africa50, the infrastructure investment arm of the African Development Bank, to enhance the country’s power transmission infrastructure.

Bloomberg reported that David Ndii, President William Ruto’s chief economic adviser, confirmed the partnership, valued at US$1.3 billion.

While the project aims to improve Kenya’s power distribution network significantly, KETRACO Managing Director John Mativo stated that the agreement is still in the approval phase, with no formal contracts signed yet.

The proposal is being evaluated under Privately Initiated Proposals (PIPs) from Africa50 and Adani Energy Solutions Limited, with further developments expected after due processes are completed.

“KETRACO, through the Ministry of Energy and National Treasury, is considering private sector involvement in transmission line projects under the PPP Act, cap 430,” said Mativo.

He emphasized the importance of this partnership in bridging the financing gap and ensuring the timely development of critical infrastructure to enhance system stability and security of supply.

Africa50 submitted an Expression of Interest (EOI) in 2018 to construct a 237-kilometre section of the line, while Adani Energy Solutions presented a proposal in 2023 to build 388 kilometres.

Both proposals are currently being rigorously evaluated, including stakeholder consultations, to ensure compliance with national interests and regulatory standards.

The deal has drawn public scrutiny, with some Kenyans raising concerns about transparency. Despite this, the government sees the partnership as a strategic move to improve power transmission capabilities.

In related news, Adani Power and Adani Green Energy have secured a contract to supply 6.6GW of combined renewable and thermal power to Maharashtra, India, through 2047.

This agreement expands Adani’s footprint in India’s energy sector. Since March 2023, Adani Green Energy’s wind-solar plant located in Jaisalmer, Rajasthan, has been supplying green energy to Mumbai, the capital of Maharashtra.

As part of the agreement, Adani Green Energy will supply 5GW of solar power from its renewable energy park in Khavda, Kutch district, Gujarat.

Additionally, Adani Power will contribute 1.6GW of thermal power from a new plant.

The Maharashtra state electricity distribution company has issued a letter of intent to Adani Power for the project. Separate agreements will be signed with Adani Power and Adani Green Energy regarding the supply of thermal and solar power.

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