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Kenya Power resumes Sh26.76 billion cheap electricity project
Wednesday, May 17, 2023
Kenya technicians work on a transmission line. file image | NMG
Kenya Power has resumed the fourth phase of its last mile project connecting homes to the national grid at a subsidized cost that was halted after the closure of local contractors.
Local contractors moved to the Public Procurement Regulatory Authority (PPARB) in 2020 to challenge the project due to unfair treatment in the bidding process, which delayed the project.
PPARB terminated the contract in February 2020 and ordered Kenya Power to resubmit the bid within 45 days of the date of this decision which the distributor failed to do.
The now losing company has canceled its 2020 bids and invited new bids that must be submitted before July 18, 2023.
We submitted the tender in February 2020 but the local contractors went to the Public Procurement Regulatory Authority claiming unfair treatment. “We had to find a win-win situation for local and international contractors who were interested in this bid,” said a source familiar with the matter. The daily business On condition of anonymity.
PPARB in its ruling in 2020 directed Kenya Power to “break up” or break up the tenders into smaller pieces to allow the participation of local contractors.
Local contractors failed to downgrade the tender in protest of Kenya Power’s technical and financial specifications which they said mainly favor foreign companies getting paid including Chinese contractors.
The utility has received NIS 26.76 billion in funding from three multilateral lenders that will be used to connect another 280,473 households across 32 counties to power.
The energy distributor has secured a loan of Sh13.38 billion (90 million euros) from the French Development Agency (AFD), a grant of Sh4.46 billion (30 million euros) from the European Union (EU) and another loan from the European Union. Investment Bank (EIB) with Sh9.82 billion (€60 million).
Kenya Power said on Wednesday that the new phase will include the installation of 940 new transformers, the optimization of 3,735 existing transformers and the construction of transmission lines in the designated counties.
Some of the counties that will benefit include Bomet, Bungoma, Busia, Embu, Homa Bay, Kajiado, Kakamega, Kericho, Kilifi, Kirinyaga, Kisii, Kisumu, Kitui and Kwale.
Others are Laikipia, Makwen, Meru, Megure, Muranga, Nakuru, Nandi, Narok, Nyamira, Nyandarua, Nyeri, Siyaya, Taita Taveta, Tharaka-Nithi, Trans Nzoya, Osin Jishu, Vihija, and West Pokot.
The early stages of the project saw consumers connect at a subsidized rate of Sh15,000, depending on their proximity to power lines and transformers, down from Sh35,000.
The recipients must be within 600m of the transformer.
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