PGCIL, Africa50 sign agreement for Kenya’s first PPP-based transmission lines
- January 13, 2022
Power Grid Corporation of India Ltd (PGCIL) and Africa50 – the pan-African infrastructure investment platform – have signed a joint development agreement to develop the “Kenya Transmission Project.”
The Kenya Transmission Project (KTP) entails the development, financing, construction, and operation of the 400kV Lessos – Loosuk and 220kV Kisumu – Musaga transmission lines under a public-private partnership (PPP) framework.
Once completed, the project will be the first Independent Power Transmission (IPT) in Kenya and set a reference point in Africa as the first financing of transmission lines on a PPP basis.
KTP will also improve both the supply and reliability of power transmission in Western Kenya. It will further create a demonstration effect to help increase private sector investments into the expansion of Africa’s power transmission networks, which is critical to bridging the continent’s electricity access gap, a release from Africa50 said.
Role of partners
In this development partnership, PGCIL will provide technical and operational know-how to the project, while Africa50 will bring its project development and finance expertise and will act as a bridge between the Kenyan government and private investors.
The signing of this agreement underscores Africa50 and PGCIL’s commitment to continue to dedicate resources to accelerate development activities on the project until financial close.
Also read: PGCIL Board Approves Expenditure Under Africa50 Collaboration
Precursor
It may be recalled that in November 2021, the board of PGCIL approved to undertake initial capital expenditure under the collaborative venture with Africa50. Prior to that, in November 2019, PGCIL and Africa50 signed a cooperation agreement to partner in the development, finance, construction and operation of power transmission lines in Kenya.
Africa50
Africa50 is an infrastructure investment platform that was established to help bridge Africa’s infrastructure funding gap by facilitating project development, mobilizing public and private sector finance, and investing in infrastructure on the continent. Africa50 focuses on medium- to large-scale projects that have development impact and offer an appropriate risk-adjusted return to investors. Bringing project development and financing together in one platform, Africa50 seeks to provide support at every stage of the project cycle.
Featured photograph (source: Africa50) is for representation only
