Date : 13 Jan 2022
Africa’s first transmission PPP project in Kenya by Power gridTags :
Indian Economy and issues relating to planning, mobilization, of resources, growth, development, and employment
Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.
Why in News?
- Power Grid Corporation of India Limited (POWERGRID) has signed a Joint Development Agreement with Africa50, the pan-African infrastructure investment platform to continue to develop the Kenya Transmission Project on a public-private partnership basis.
- The project 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 will set a reference point in Africa as the first financing of transmission lines on a PPP basis.
- This Project will also improve both the supply and reliability of power transmission in Western Kenya and further create a demonstration effect to help increase private sector investments into the expansion of Africa’s power transmission networks that is critical to bridging the continent’s electricity access gap.
- In this development partnership, POWERGRID, one of the world’s leading electric transmission utility companies 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.
- In the past few years, a lot of emphasis has been placed on attracting private investments in energy production infrastructure in Africa.
- It is time to also focus on catalyzing private investment into the development of power transmission networks across Africa as these are a critical link to improving electricity access, especially in underserved communities
- Africa50 is an infrastructure investment platform that contributes to Africa’s economic growth by developing and investing in bankable infrastructure projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact.
- Africa50 currently has 31 shareholders, comprised of 28 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib.