Mon Sep 16 16:21:27 UTC 2024: ## Kenya Electricity Transmission Company Denies Awarding Power Line Contract to Adani, Talks Still Ongoing

**Nairobi, Kenya** – The Kenya Electricity Transmission Company (Ketraco) has denied awarding a $1.3 billion contract for the construction of three power lines to Adani Energy Solutions Ltd., contradicting an announcement made by a presidential adviser. While Ketraco confirmed ongoing talks with Adani, the company stated that no final decision has been made and the project is still under evaluation.

Ketraco’s CEO, John Mativo, emphasized the company’s commitment to securing the best deal for Kenya. He stated that negotiations are ongoing and several aspects are still under consideration.

The potential project involves the construction of 388 kilometers of high-voltage transmission lines, including a new line linking Gilgil, Thika, Malaa, and Konza. The initial estimated cost was $1.01 billion, which was revised to $736.5 million last month.

This announcement comes amid controversy surrounding Adani’s bid to secure a 30-year concession to operate Kenya’s largest airport, which has sparked public outrage due to concerns over transparency and procurement regulations.

Kenya faces a $5 billion financing gap for power lines, with the National Treasury unable to cover the necessary funds. The country has experienced two national power outages this year, highlighting the urgent need for grid infrastructure improvements.

Ketraco is seeking a lower cost of debt and internal rate of return compared to Adani’s proposal. In addition to Adani, a joint venture between Africa50 and Power Grid Corp of India has also submitted a proposal for the construction of power lines in Kenya.

The final decision on the power line project is expected to be made after thorough evaluation of all bids and negotiations with potential partners.

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