Nairobi: Gautam Adani’s conglomerate, Adani Energy Solutions Ltd (AESL), has formalized a 30-year partnership with the Kenya Electricity Transmission Company Ltd (Ketraco) to construct and manage vital electricity transmission lines across Kenya. This collaboration aims to strengthen the country’s power infrastructure, addressing the issue of frequent blackouts.
Under the agreement, AESL will oversee the development, financing, construction, operation, and maintenance of key transmission lines and substations throughout Kenya. The initiative is projected to significantly boost the reliability of the power supply in the region.
The total cost of the project is estimated at 95.68 billion Kenyan shillings (approximately USD 736 million), with funding secured through a combination of debt and equity. This financing will be repaid over the duration of the 30-year contract, with final costs determined through a competitive bidding process led by Ketraco and AESL.
Importantly, the Kenyan government will not incur any financial liabilities for this project. After three decades of operation, AESL is set to transfer the project and its assets back to Ketraco, ensuring long-term sustainability and operational efficiency.
The project encompasses the development of three transmission lines and two substations. Previously, the Adani Group had explored operating the main airport in Kenya; however, that proposal was halted due to public protests.
Additionally, Ketraco is working with a consortium that includes Africa 50, an infrastructure investment platform, and Power Grid of India to establish two further transmission lines. These partnerships highlight Kenya’s commitment to forging strategic alliances that align with its development goals.
This initiative reflects the Kenyan government’s focus on securing the nation’s energy future through collaborative efforts. As noted by Wandayi, these actions are crucial for enhancing the reliability of the energy supply while promoting sustainable growth in the power sector.
