This archive report was first published on 13 May 2020.
Published on May 13, 2020, plans by the Kenya Electricity Generating Company PLC (KenGen) to set up the first phase of Olkaria VI 140MW Power Plant in Naivasha are in top gear following the shortlisting of bidders for the project.
The project, which involves the development of a geothermal power generation plant on a Build, Own, Operate and Transfer (BOOT) basis, is a Public-Private Partnership (PPP) project under the PPP Act 2013 and the PPP Regulations 2014.
Ormat Technologies Inc, ITOCHU Corporation, Sumitomo Corporation, Enel Green Power, and a consortium of Engie Energie Services, Toyota Tsusho Corporation, Kyuden International Corporation, and DL Koisagat Tea Estate were shortlisted as qualified bidders and gazetted on Friday, May 8th, 2020.
The successful bidder will enter into a joint venture with KenGen and incorporate a special purpose vehicle (SPV) in accordance with the laws of Kenya. KenGen will be a shareholder in the SPV and will enter into a long-term power purchase agreement with Kenya Power.
The PPP project will ensure a quick rate of conversion of steam into power while reducing risks and debt burden for KenGen. It will also enable technology transfer and capacity building.
