Kenyan court halts $736 million Adani power line agreement
- In Reports
- 04:57 PM, Oct 26, 2024
- Myind Staff
Kenya’s High Court has suspended a $736 million agreement between the state utility and India’s Adani Energy Solutions. This deal was aimed at building and operating power infrastructure, including transmission lines.
Earlier this month, Adani Energy Solutions and the state-owned Kenya Electrical Transmission Company (KETRACO) signed a public-private cooperation deal. The energy ministry announced on October 11 that it would assist in addressing ongoing power outages and promoting economic expansion. The High Court stated that until the court ruled on a complaint filed by the Law Society of Kenya contesting the arrangement, the government may not proceed with the 30-year contract with Adani Energy Solutions.
The power pact, according to the law society, is "a constitutional sham" and "tainted with secrecy." The law society stated that KETRACO and Adani Energy Solutions did not engage the public effectively in discussions about the project, as required by Kenya’s Public-Private Partnerships Act of 2021, which permits private companies to develop public projects. According to earlier statements, the energy ministry conducted a competitive bidding process.
A request for comment was not immediately answered by an Adani Group representative. The Indian billionaire Gautam Adani built the Adani Group recently drew ire from Kenya with a planned public-private partnership proposal that would lease the nation's principal airport for 30 years in exchange for its expansion. The Law Society of Kenya and the Kenya Human Rights Commission have also filed a legal challenge against the proposed airport contract, claiming it is not cost-effective, threatens job losses, and is not worth the money.
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