KenGen has awarded the tender to put up two units of 70MW each at their Olkaria V geothermal site by 2019. The project is being financed mainly through a loan of KES 40 billion provided by the Japan International Cooperation Agency (JICA). Additional financing will come from KenGen’s cash reserves, including proceeds from the recently concluded rights issue which raised Sh6.35 billion from minority shareholders.
A three-company consortium led by Japanese firm Mitsubishi Corporation won the tender to construct the 140 MW Olkaria V geothermal power plant in Naivasha. Reports indicate that Mitsubishi Corporation will be responsible for supplying the plant’s main equipment, while MHPS will handle in-land transportation and installation. HY, a Kenya-based engineering, and construction company, will supply the remaining components needed for plant construction, as well as conduct civil engineering and installation works. The Olkaria V Geothermal Plant development project encompasses three large contracts a Steamfield Gathering System; Power Plant; and 220kV Substation and Transmission Lines.
The generator reported an 18.4 % drop in net profit in the half year ended December 2016, This was occasioned by lower sales and higher costs of running. They reported a net profit in the same period as KES 4.6 billion. Last year Eng. Albert Mugo, the Managing Director of KenGen said the Olkaria V project is the only new project the State-owned power producer will build this fiscal year ending in June 2017.
KenGen had an installed capacity of 1,630 MW as at June 30, 2016. This makes it the dominant power producer in Kenya. Toyota Tsusho, in partnership with Korean firm Hyundai Engineering in 2015 completed the construction of KenGen’s Olkaria I and IV which have a combined output of 280 MW.
Power generator awards tender for 140MW geothermal power
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