Amu Power signs Sh206bn deal with China Power Global
Amu Power has signed a Sh206bn deal with the China-based China Power Global to put up the Lamu power generating coal plant incorporated as part of the LAPSSET corridor.
The plant is expected to inject 1050MW into the power grid and will contribute to a stable power supply.
“It is important because it’s a base load. Kenya has been depending on hydros and because of the advanced weather condition we are experiencing a lot of problems.”
Energy Cabinet Secretary Charles Keter who witnessed the signing of the deal together with the President Uhuru Kenyatta was optimistic that the plant will be up and running in two years’ time.
“We are almost reaching conclusion; they have initialised the PPA. What is remaining which we are working on is the letter of support which we’ve given them the standard, they’ve made comments, which is still now between Treasury and the Attorney General, they’ve also signed the LAPSSET lease. If all goes well they can do their ground-breaking by June, July.” Keter said.
“We’ve already started the process of transmission line, the 400kV line from Lamu to Kitui to Nairobi which we’ve awarded to three contractors already.”
Its biggest selling point is however, is that it would provide a cheap source of power.
“We’re saving a lot in terms of kWh,” Keter added.
And while environmentalists would cite the cost to the environment and respiratory health, Keter stands behind the plant.
“The newly built power plants of coal right now are environmentally clean. If you look at China, most of their power supply is through coal; US, all the countries worldwide. So in the essence of Kenya, if we require over 30,000 MW of power for us to be an industrialised, nation, we require all kinds of sources of power,” he said.