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Govt, Finland partnership to power Juja station

18 December 2013, 15:46

Nairobi - Kenya and Finland have signed an agreement to cooperate on the upgrading of the Juja Road electricity transmission substation.

The commercial contract is between the Kenya Power and ABB Power Systems while that the loan agreement is between the National Treasury of Kenya and the Nordea Bank Finland.

Tiia Haapaniemi, a Programme Officer for Trade and Political Affairs at the Embassy of Finland, confirmed the contracts.

“The upgrading of the Juja Road substation will increase the station’s reliability, security, operational flexibility and transformational capacity to connect more customers into the grid as well as to improve general quality of the power,” added Haapaniemi.

The improvements of the Juja Road substation will have a positive impact on the development of the greater Nairobi area as well as on poverty reduction.

The upgrading will improve the lives of about 800 000 Nairobi locals living in areas such as Mathare Valley, Kibera and Mukuru.

The upgraded substation would provide more stable and more reliable power not only for the industrial areas of Nairobi but also for many hospitals and schools.

The project includes a commercial contract and a loan agreement.

The contribution of the government of Finland supports both of these under the concessional credit scheme. The total financing of the government of Finland – approximately 14.6 million Euros – is divided between interest payments on the concessional credit, amounting to a maximum of approximately 9.7 million Euros, and a grant portion of the commercial contract amounting to approximately 4.9 million Euros.

Current technology at the station dates from 1952. ABB Power Systems will provide the new technology to Kenya Power.

Consistent energy supply is a basic condition for government’s economic and social growth, and also one of the main priorities of the government of Kenya.

 – CAJ News


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