As Kenya strives to achieve its 5,000MW of power by 2017 in efforts to reduce the cost of power, Centum Investment has won another tender to construct a coal power plant in Kwasasi, Lamu County. The plant will produce 1000MW of electricity, which is close to about 40% of Kenya’s electricity demand capacity. The project worth KES192bn will be funded by equity of around KES458m (USD450m) with an additional KES137bn (USD1.35bn) from debt.
Construction of the project is expected to begin in September 30, 2015 and will take 21 months to complete to produce electricity at 7.52 dollar cents per kilowatt hour, almost a third of what Kenya produces from diesel-fired plants. The power generated will be transmitted to Nairobi through a 520km, 400kV electricity transmission line.
Amu Power Company, a consortium that brings together Gulf Energy and Centum Investment among others, will develop, own and operate the station as part of the Lamu Port South-Sudan -Ethiopia Transport (LAPSSET). In 2014, the government sourced for bids from private developers to build and operate own power station and the winners of the bids awarded in September same year.
The power plant will create employment to at least 1000 Lamu residents .Kenya’s power system currently has a capacity of 1,664MW comprising of hydro (770MW), geothermal (241MW), thermal (622MW), co-generation (26MW) and wind (5MW).