Under this major deal, the Adani Energy will manage the transmission lines in Kenya.
Gautam Adani, one of the richest persons in India and Asia, has struck another major deal, this time with Kenya. His company, Adani Group, has signed a new agreement with the Kenyan government, which is being hailed as a strategic move by Gautam Adani. However, a previous deal involving a Kenyan airport remains stalled. Notably, the new deal is worth approximately USD 736 million (around Rs 6,200 crore).
Under this major deal, the Adani Energy will manage the transmission lines in Kenya. As per Kenya’s Cabinet Secretary for Energy, Opiyo Wandayi, Adani Energy Solutions Limited has signed a 30-year agreement with Kenya Electricity Transmission Company Limited (KETRACO)
Adani’s Major Deal With Kenya
Kenya is currently grappling with a significant electricity issue. As per the recent pact, it has been decided that Adani Energy will spearhead the crucial task of building transmission lines and substations across the country. Additionally, they’ve been entrusted with the financing, foundational work, and operational duties, as well as the ongoing upkeep of this infrastructure. This venture aims to bolster Kenya’s power transmission system to ensure a steady flow of electricity across the nation.
No Money Will Be Spent By Kenyan Government
This raised capital is intended to be paid back over a period of three decades. The task of managing the competitive bidding is set to be a joint effort between KETRACO and AESL. Additionally, AESL has been entrusted with the construction of three power transmission lines and a couple of substations.
Wandayi Opiyo stated that the Kenyan government will not going to spend its money on the project. He stated that the AESL has strategy to gather funds through loans and equity contributions. The money gathered is slated to be paid off over a span of three decades. Carrying out the competitive bidding process brings KETRACO and AESL together in a shared commitment. Plus, AESL has been earmarked as responsible for establishing three power transmission lines and a couple of substations.
The Airport Deal On Pause
The Adani Group is delving into their second major project in Kenya, reminiscent of their earlier contract where they managed the country’s leading airport. However, adversities from local opposition delayed the project. The Kenyan government had announced their plan to lease Jomo Kenyatta International Airport (JKIA), the country’s biggest airport, to the Adani Group for 30 years. In spite of this, the Kenya Aviation Workers Union (KAWU) is actively against this contract, rallying for its termination.