PGCIL Signs JDA with Africa50 to Develop Africa’s 1st Transmission PPP Project in Kenya

State-owned electric transmission utility company Power Grid Corporation of India Ltd (Powergrid/PGCIL) has signed a Joint Development Agreement (JDA) with Africa50, an African infrastructure investment platform, to continue to develop the Kenya Transmission Project.

Africa50 is an infrastructure investment platform that contributes to Africa’s economic growth by developing and investing in bankable infrastructure projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact.

Currently, Africa50 has 31 shareholders, comprised of 28 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib.

Further, the scope of the project includes - development, financing, construction, and operation of the 400kV Lessos – Loosuk and 220kV Kisumu – Musaga transmission lines under a public-private partnership (PPP) framework.

Once completed, it would be the first Independent Power Transmission (IPT) project in Kenya and would also set a reference point in Africa as the first financing of transmission lines on a PPP basis.

Also, the project is expected to improve both the supply and reliability of power transmission in Western Kenya and further create a demonstration effect to help increase private sector investments into the expansion of Africa’s power transmission networks, which is critical to bridging the continent’s electricity access gap, the Power Ministry said in a statement.

Under the development partnership, PGCIL will provide technical and operational know-how to the project, while Africa50 will bring its project development and finance expertise and will act as a bridge between the Kenyan government and private investors.

On signing the project, K. Sreekant, Chairman and Managing Director of PGCIL, Commented “Powergrid is pleased to partner with Africa50 in undertaking the development of the first PPP mode transmission project in Kenya. Transmission plays an important role in bringing efficiency in the entire electricity supply chain. A robust transmission network not only imparts reliability and security to the electricity grid but also allows non-discriminatory access to buyers and sellers which spurs the competition that results into competitive electricity prices to the ultimate consumer.”

Sreekant further said “Powergrid hopes that the present transmission project in Kenya shall serve as a Model for undertaking more such projects in Kenya as well as other African countries. Powergrid with its rich technical and managerial experience in undertaking transmission systems under PPP mode shall be pleased to be associated in this journey.”

Commenting on the partnership, Alain Ebobissé, CEO of Africa50, said that “we are very pleased to partner with the Government of Kenya and Powergrid to implement this important and pioneering project in one of our shareholder countries. In the past few years, a lot of emphasis has been placed on attracting private investments in energy production infrastructure in Africa. It is time to also focus on catalyzing private investment into the development of power transmission networks across Africa as these are a critical link to improving electricity access, especially in underserved communities.”