Page 6 - AfrElec Week 23 2022

AfrElec POLICY AfrElec

Kenyan MPs want Ketrco

probed for losses

KENYA A parliamentary committee has recommended implementation of the transmission intercon-
the investigation of the management of a state nector, including failure to secure way leaves
agency over a delayed power project that saw and signing addenda to the contract that led to
taxpayers lose KES18.5bn ($158mn). delay in the completion of the line and exposed
The MPs want the management of Kenya Kenyan taxpayers to deemed generated energy
Electricity Transmission Co. (Ketrco) probed amounting to KES18,499,082,672 and higher
over the delayed completion of a transmission energy bills,” reads the report.
line connecting the Lake Turkana Wind Power The committee at the same time wants the
(LTWP) plant to the national grid that saw tax- accounting officers during the time the contract
payers slapped with the hefty loss. was executed held accountable for not conduct-
Daily Nation reported the amount was levied ing an independent legal risk assessment prior
for deemed generated energy, which arises in a to execution of contracts for a capital project of
situation when the plant is available to gener- this magnitude.
ate power but unable to deliver to the offtaker’s “The project was the single largest public-pri-
system. vate partnership in Kenya and no risk analysis
The National Assembly’s Public Investments was carried out to establish potential challenges
Committee (PIC), in a report tabled in Parlia- to the project such as delayed construction of the
ment on 9 June in the afternoon, wants Ketraco transmission line.
management investigated over contract man- “These infractions exposed the government,
agement and implementation of the project. taxpayers and other partners to value for money
The penalty arose from a delay in completing and litigation risks for delayed payments to con-
the 428-km high-voltage power line from Mars- tractors,” reads the report.
abit to Suswa sub-station in Narok, the main In accordance with the terms of the power
interchange for power from different sources. purchase agreement (PPA) and the government
The LTWP plant was ready by January 27, letter of support issued on February 28, 2013,
2017, but the transmission line was not com- LTWP was entitled to government transmission
pleted until September 10, 2018, almost 19 interconnector delay and deemed generated
months later. energy payments from the date of the plant’s
“The EACC (Ethics and Anti-Corruption completion until the transmission line was
Commission) should investigate the Ketraco operational.™
management on the contract management and

P6 www. NEWSBASE .com Week 23 09•June•2022