TALKING NOTES BY KENYA POWER MANAGING DIRECTOR & CEO, ENG. JOSEPH NJOROGE, DURING CONTRACT SIGNING FOR THE KENYA ELECTRICITY EXPANSION PROJECT AT SAROVA STANLEY HOTEL, NAIROBI, ON WEDNESDAY 4TH APRIL, 2012 AT 11.00 AM.

  • KETRACO Managing Director, Eng. Joel Kiilu,
  • Officials from Tata Projects Ltd., KEC International Ltd. and ABB South Africa (pty) Ltd.,
  • Colleagues from Kenya Power,
  • Members of the press,
  • Ladies and gentlemen…

Iwelcome you all to this brief but important contract signing ceremony. This event signifies concerted efforts to intensify our project implementation and increase access of electricity in the country.

I am very pleased that you were able to join us today in taking a big step in this journey towards a more stable supply of electricity.

In the recent past, Kenya Power has consistently recorded increasing demand for power in the country with the current actual demand peaking at 1,236 MW. This has been occasioned by the expanding economy especially in the last ten years.

Going forward the economy is highly favoured to grow rapidly.Kenya Power currently has approximately 1.9 million electricity customers and we have been adding more than 200,000 customers annually since 2008. Last year, we added 289,000 customersto the national grid.

The Company aims at further accelerating access to quality electricity to more than 50% of Kenyans in line with the country’s Vision 2030, and in recognition that electricity is a key enabler of the country’s development. We aim to connect over 300,000 in the subsequent years to power this dream.

It is with this in mind that the government mooted the Kenya Electricity Expansion Project (KEEP) to improve access and quality of electricity to areas that are not covered by the national grid.

Through the Least Cost Power Development Plan, the government has received financial support from development partners such as the World Bank in support of the programme.

In this instance, the government through the Ministry of Energy has received a loan amounting to USD64.5million(Shs.3.9 billion) from the International Development Association (IDA), an arm of the World Bank to finance several projects under KEEP.

The project comprises four contracts outlined below:

  1. Contract 15 Lot 1:
  • Establish 132kV bay at Eldoret (Rivatex) 132/33kV substation
  • Establish 2X23MVA, 132/33 Substation at proposed Kitale substation

Cost: USD.5,116,603.

Contract awarded to: M/S ABB South Africa (pty) Ltd.

Contract 15 Lot 2:

  • Establish 132kV bay Kisii (Kegatti) 132/33 kV substation.
  • Establish 2X23MVA, 132/33kV Substation at proposed Awendo substation

Cost: USD.5,110,920.

Contract awarded to M/S ABB South Africa (pty) Ltd.

  1. Contract 16
  • Establish 132kV double busbar near Kindaruma existing 11/132kV power station and 132kV take off bay at proposed Mwingi substation
  • Establish 1X 7.5 MVA, 132/33 transformer at proposed Mwingi substation
  • Establish 1x 7.5 MVA 132/33 transformer and 1X 7.5 MVA 132/11kV transformer at proposed Garissa substation

Cost: USD.7,903,355.

Contract awarded to: M/S KEC International (India) Ltd.

  1. Contract 17 - Construction of approximately 224 km , 132kV single circuit transmission line from existing Kindaruma power station to new proposed 132/33 kV Mwingi substation and onward to proposed 132/33 kV Garissa substation.

Cost: USD.8,218,605.

Contract Awarded to: M/S Tata Projects Ltdof India.

  1. Contract 18 Lot 1 - Construction of approximately 60 km , 132kV single circuit transmission line from existing Eldoret (Rivatex) substation to Proposed 132/33kV Kitale substation.

Cost: USD.2,715,348.

Contract Awarded to: M/S Tata Projects Ltd of India

Contract 18 Lot 2 - Construction of approximately 44km, of 132kV single circuit transmission line from the existing Kisii 132/33kV substation to the new proposed 132/33 kV Awendo substation.

Cost: USD.1,647,493.

Contract Awarded to: M/S Tata ProjectsLtd of India

Whereas the Kenya Electricity Transmission Company (KETRACO) will be the owner and operator of the transmission lines, Kenya Power will play the role of the executing agent for the transmission component of the projects.

These KEEP projects will complement the Energy Sector Recovery Programme which is funded by Kenya Power and a consortium of financiers to upgrade and reinforce the country’s electricity network and subsequently improve the quality of power supply to customers.

These projects will also help extend the country’s transmission grid; provide alternative electricity feeders; and improve quality and reliability of supply across three regions namely: Rift Valley, Eastern and Nyanza.

Other projects being implemented by Kenya Power

A Shs.20 billion undergroundpower network system for Nairobi, Mombasa and Kisumu is one of the key projects the Company plans to implement as part of Vision 2030.

The project, which will be highlighted more in a presentation, involves conversion of overheadpower lines system to underground cables system in the three cities.

It entails undergrounding of a total of 645 kilometres of 11 kV lines and 1,570 kilometres of low voltage lines in Nairobi, Mombasa and Kisumu. At the same time, a total of 1,235 pad mounted substations will be installed in various parts of these cities.

To electricity customers, the project will mean improved quality and reliability of supply owing to reduced transient faults and system disturbances.

Last year, we embarked on a Shs.600 million project to automate the power distribution network in Nairobi and Mombasa. Upon completion, the automation project will facilitate the efficient monitoring and quick resolution of disturbances in the power network in order to minimise interruption of electricity to customers (a step towards building a smart grid system).

The project entails installation of automatic units in selected areas including the Central Business District, Westlands, Industrial Area, Upper Hill, Community and Parklands in Nairobi, and the whole of Mombasa Island and its environs in the Coast province.

The automation system will enable Kenya Power to remotely locate and isolate faulty positions along its power distribution lines with minimum disruption of power supply to customers who are not directly affected by the fault.

The signing of the contracts today is additional manifestation by Kenya Power and the Government of concerted efforts to further transform and modernise the transmission and distribution system to deliver adequate and reliable power supply that will support the robust national economy envisaged under Vision 2030.

At this juncture, I would like to invite the KETRACO Managing Director, Eng. Joel Kiilu, to make his remarks before we sign the contract.

Thank you.

Eng. Joseph Njoroge, MBS,

Managing Director& CEO,

Kenya Power