Lamu coal-fired power plant project, Kenya

23rd January 2015

Lamu coal-fired power plant project, Kenya

Name and Location
Lamu coal-fired power plant project, Kenya.

Client
Government of Kenya.

Project Description
The project involves the construction of a 960 MW coal-fired power plant in Lamu County.

The power plant will generate almost 50% of Kenya's electricity capacity

Value
The project will cost an estimated $2-billion, about $500-million of which will be funded by equity and the balance through debt.

Duration
The power plant is part of government’s target to generate 5 000 MW of electricity in the country by 2017.

Latest Developments
Kenya's Centum Investment Company will start building the coal power plant after a challenge for the award of the tender by a rival bidder was rejected by a tribunal.

Centum, which won the tender to build the 1 000 MW plant last September, entered a consortium with Gulf Energy to present the winning bid.

However, the award of the tender was challenged by a rival consortium, HCIG-Liketh, before a government committee.

The tribunal ruled in favour of the Centum-Gulf Energy consortium.

"We will now work hard to recover the time lost since the award of the tender," Centum CE James Mworia says.

Centum says the coal-fired power plant, when completed, will be funded by equity of about $450-million, with the balance of $1.35-billion coming from debt.

Key Contracts and Suppliers
Gulf Energy, Centum Investment Company, Sichuan Electric Power Design & Consulting Company, Sichuan No 3 Power Construction Company and China Huadian Corporation Power Operation Company (construction contract).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Centrum, tel +254 20 228 6000, fax +254 20 222 3223 or email info@centum.co.ke.