Adani groups bags contract to build power lines in Kenya with $1.3 billion concession
- In Reports
- 11:47 AM, Sep 16, 2024
- Myind Staff
Kenya has awarded a public-private partnership (PPP) concession to India's Adani Group and Africa50, a unit of the African Development Bank, to build power transmission lines worth $1.3 billion. The announcement was made by David Ndii, Chief Economic Adviser to President William Ruto, through a post on X (formerly Twitter). This partnership is part of the government's strategy to improve the country’s power infrastructure without further increasing its national debt.
"The government, through KETRACO, has awarded PPP concessions to Adani and Africa50 to build new transmission lines," Ndii stated. "They are hiring their project teams. The cost of these transmission lines is $1.3 billion that we do not have to borrow." KETRACO, Kenya Electricity Transmission Company, is the state corporation responsible for electricity transmission across Kenya.
Africa50 is an infrastructure investment platform that was established by the African Development Bank to help finance major development projects across the continent. By collaborating with international partners like the Adani Group, Kenya aims to accelerate the growth of its electricity network without adding to its already significant debt burden, which has accumulated over years of heavy infrastructure spending.
Adani Group and the African Development Bank unit Africa50 have not yet responded to requests for comment from Reuters.
This development comes amid controversy over a separate Kenyan government plan to lease its main international airport, Jomo Kenyatta International Airport, to the Adani Group. The proposal would involve leasing the airport for a 30-year period, with Adani committing $1.85 billion to fund the expansion and modernization of the airport. This plan has triggered widespread anger among Kenyans, as well as a strike by the country’s aviation workers.
Adani Group, which operates seven airports in India, has frequently faced criticism from opposition parties in India, who accuse the conglomerate of receiving favourable treatment from the ruling government. Both the Indian government and the Adani Group have denied these accusations.
Kenya's financial situation remains challenging, as the country struggles with a high debt load. Earlier this year, the government proposed raising taxes to generate additional revenue needed for debt repayments. This sparked a series of protests across the country, with some turning violent, eventually forcing the government to back down on the proposal.
Image source: Business Standard
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