Amu Power signs Sh206bn coal plant deal with China Power Global

May 16, 2017 (2 weeks ago)
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The plant is expected to inject 1050MW into the power grid and will contribute to a stable power supply/PSCU

, BEIJING, China, May 16 – The Lamu power generating coal plant incorporated as part of the LAPSSET corridor is well on its way to realisation following the signing of a Sh206 billion agreement between China Power Global and Amu power.

Energy Cabinet Secretary Charles Keter who described the plant as “one of the biggest plans under the public-private partnership framework,” and who together with President Uhuru Kenyatta witnessed the signing of the deal, is optimistic that the plant should be up and running in two years’ time.

“We are almost reaching conclusion, they have initialised the PPA. What is remaining which we are working on is the letter of support which we’ve given them the standard, they’ve made comments, which is still now between Treasury and the Attorney General, they’ve also signed the LAPSSET lease. If all goes well they can do their groundbreaking by June, July.”

“We’ve already started the process of transmission line, the 400kV line from Lamu to Kitui to Nairobi which we’ve awarded to three contractors already.”

The plant is expected to inject 1050MW into the power grid and will contribute to a stable power supply.

“It is important because it’s a base load. Like now, we closed down Masinga until last week. Kenya has been depending on hydros and because of the advanced weather condition we are experiencing a lot of problems.”

Its biggest selling point is however, that it would provide a cheap source of power. “We’re saving a lot in terms of kWh,” Keter said.

And while environmentalists would cite the cost to the environment and respiratory health, Keter stands behind the plant.

“The newly built power plants of coal right now are environmentally clean. If you look at China, most of their power supply is through coal; US, all the countries worldwide. So in the essence of Kenya, if we require over 30,000 MW of power for us to be an industrialised, nation, we require all kinds of sources of power.”

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