Govt selects 22 firms to build power plants
28 January 2014, 09:40
Nairobi - Cabinet Secretary for Ministry of Energy and Petroleum, Davis Chirchir said on Monday that they have selected 22 local and international firms for the development of two power plants with a combined output of 1,800MW from coal and natural gas.
Chirchir told a news conference in Nairobi that 12 firms are interested in the coal power plant while 10 are interested in natural gas-fired power plant.
"The sourcing of the coal will be from the government as well as competitors while the gas will be from the Qatar government," Chichir told journalists in Nairobi.
He said the contenders include China's Shanxi International Electricity Group, Sinohydro Group Ltd, and South Korea's Samsung C&T Corp among others.
Chirchir said the government will build two major power plants at the coast to the tune of 4 billion U.S. dollars in a bid to lower power tariffs.
The first, a coal-fired power plant power construction with a capacity of 960 Megawatts (MW) will be built in Lamu County at a cost of 1.95 billion dollars while the other is a 700MW plant at Dongo Kundu in Mombasa County worth 1.46 billion dollars which will be powered by natural gas.
Chirchir said that the tendering process commenced in September 2013, adding that the first phase of the process has already been finalized.
According to the cabinet secretary, the tendering process commenced in September 2013 and the projects will be completed in the year 2015 and 2016 for the natural gas and coal powered plants respectively.
The country has a huge mineral potential but its exploration efforts have only picked in the last five years with the awarding of commercial licences in prospecting for oil, gold, coal, geothermal and rare earths.
The coal and gas fired power plants are projects under the 5000+ MW program launched by the energy ministry early last month, aimed at putting an additional over 5000MW into the national grid by 2016.