This archive report was first published on 13 May 2020.
Kenya Electricity Generating Company (KenGen) has made significant progress in the development of the Olkaria VI power plant project, a Public Private Partnership (PPP) that will add approximately 160MW to Kenya's total electricity output.
On November 2019, KenGen invited bidding for the PPP, with the company set to be the minority shareholder at 25% and the external partner holding 75% of the stake in the joint venture.
The selected firm will finance, construct, own, and operate the power plant and associated facilities on a Build, Own, Operate, and Transfer (BOOT) basis. At the end of the operational term, the project will be transferred back to KenGen.
KenGen has previously relied on syndicate loans, multilateral and bilateral institutions, local infrastructure bonds, equity, and state-to-state concessionary funding to construct its Olkaria I to VI units. The Olkaria VI PPP is the first of its kind for the biggest Sub-Saharan African geothermal electricity production firm.
The shortlisted bidders are Sumitomo Corporation, Enel Green Power, ITOCHU Corporation, Oromat Technologies Inc, and a consortium of Engie Energie Services, Toyota Tshusho Corporation, and DL Koisagat Tea Estate.
The next stage of the project will involve requests for proposals (RfP), expected to roll out in June 2020, paving the way for the successful bidder to proceed to the final stage of implementing the project agreements.
The project will be subject to the scrutiny of the PPP Act 2013 and the PPP Regulations 2014.
