Tata power, India’s largest integrated Power Company has been barred by the Kenyan government from developing a 1,000 megawatt coal power plant in Lamu for infringing the public and private partnership regulation.
The reasons to its blockage was that it was pre-qualified to present a tender application as an individual bidder and had teamed up with other associations like Kenya’s Gulf Energy, Exxaro Energy Resources Limited ,Cennergi Pty Limited leading to double bidding.
Ministry of Energy and Petroleum noted that Tata Power has a large stake at Cennergi Pty Limited which operates as a ancillary of Exxaro Resources Limited thus it can’t be allowed to be in association with other companies in accordance to the Public and Private Partnership Act 2013.
The Act prohibits members of a consortium to submit a bid either directly or indirectly through another company especially if the member has a large stake in a company or control of the bidding company’s management.
Meanwhile, Ormat Technologies ,a New York Stock Exchange power generator has been listed to undertake the construction of 100 megawatt plant in Menengai as part of Kenya’s vision to increase the energy capacity by 5,000 megawatts.
Geothermal Development Company picked Ormat Technologies through a wholly owned subsidiary Orpower 4, Quantum Power and Sosian Firm, a local firm in which all are Independent Power Producers (IPPs).
The construction of the plant that commences in December will cost about Sh4 billion. Quantum Power and Sosian Energy will each build a 35 megawatt steam power plant under a build-own operate model. The three companies will produce steam at a cost of Sh 3.05 per kilowatt hour.