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State-owned Power Grid Corporation of India Ltd (PGCIL) has inked a pact with pan-African infrastructure investment platform Africa50 to continue the development of the Kenya Transmission Project on a public-private partnership basis.
According to a statement by the power ministry, the project entails the development, financing, construction, and operation of the 400kV Lessos-Loosuk and 220kV Kisumu-Musaga transmission lines under the public-private partnership (PPP) framework.
Once completed, the project will be the first independent power transmission (IPT) in Kenya and will set a reference point in Africa as the first financing of transmission lines on a PPP basis.
This project will also improve both the supply and reliability of power transmission in western Kenya and further create a demonstration effect to help increase private sector investments into the expansion of Africa's power transmission networks, which is critical to bridging the continent's electricity access gap.
In this development partnership, PowerGrid, one of the world's leading electric transmission utility companies, will provide technical and operational know-how to the project, while Africa50 will bring its project development and finance expertise and will act as a bridge between the Kenyan government and private investors.
The signing of this agreement underscores PowerGrid and Africa50's commitment to continue to dedicate resources to accelerate development activities on the project until financial close.
Signing on behalf of PowerGrid, its Chairman and Managing Director K Sreekant said the company is pleased to partner with Africa50 in undertaking the development of the first PPP mode transmission project in Kenya.
PowerGrid hopes that the present transmission project in Kenya shall serve as a model for undertaking more such projects in Kenya as well as other African countries. The company with its rich technical and managerial experience in undertaking transmission systems under the PPP mode will be pleased to be associated with this journey, he added.
Africa50 CEO Alain Ebobiss said the platform is pleased to partner with the Government of Kenya and PowerGrid to implement this important and pioneering project in one of our shareholder countries. "In the past few years, a lot of emphases has been placed on attracting private investments in energy production infrastructure in Africa."
Ebobiss added that it is time to also focus on catalysing private investment into the development of power transmission networks across Africa as these are a critical link to improving electricity access, especially in underserved communities.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
