desert burner
February 10th, 2010, 07:40 AM
By James Anyanzwa
Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000002899&cid=14&story=KenGen%20signs%20Sh98.6b%20geothermal%20contract#) Electricity Generating Company (KenGen) has signed a Sh98.6 billion ($1.314 billion) contract with a New Zealand firm to implement a 280-megawatt geothermal power project in Olkaria, Naivasha.
The project, which comprise Olkaria I and Olkaria IV fields is part of KenGen’s fast track projects and is the biggest geothermal power project in Kenya.
It will be financed by the Government, Japan International Co-operation Agency, French Development Agency, European Investment Bank, World Bank, German-owned development bank (KfW), and KenGen.http://www.standardmedia.co.ke/images/wednesday/buscap100210_01.jpgAn aerial view of Olkaria geothermal power station. The contract is part of an initiative to stabilise the power situation in Kenya before KenGen starts implementing plans to add 1,500 MW to the national grid. [PHOTO: JACOB OTIENO/STANDARD]
The financing will include the cost of the power planthttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000002899&cid=14&story=KenGen%20signs%20Sh98.6b%20geothermal%20contract#) and drilling of the wells.
Three-year period
KenGen Managing Director, Mr Eddy Njoroge and Mr Darryl Judkins, the Sinclair Knight Merz Limited Project Manager signed the contract on behalf of their organisations.
The implementation period is three years starting this month with a target completion date of 2013.
In a statement yesterday, KenGen said the consultancy services would include technical design, preparation of tender documents, pre-qualification of potential bidders, tender evaluation and contract negotiations, and supervision of construction contracts and other support during the warranty period.
The scope of the project includes four 70MW power-generating machines, steam gathering systems, sub-stations, transmission lines and other infrastructure.
KenGen has finalised the procurement process to fast track the purchase of two drilling rigs in its continuing effort to expand geothermal power generation.
The move follows the rejection of an appeal by one of the unsuccessful bidders who had taken the matter to the Public Procurement Appeals Board.
Expansion strategy
The procurement of the two rigs is part of the geothermal capacity expansion strategy.
The power producer hopes to expand its generation capacity by 528MW by 2012 and 1,635MW between 2013-2019.
Last year the utility firm raised Sh25 billion through a Public Infrastructure Bond Offer so as to invest in additional power projects. The initiative is part of the company’s five-year strategy (2008-2012).
Projects that would benefit from the bond issue include a thermal plant in Mombasa (120 MW), upgrading of Tana, Masinga and a third unit of Kindaruma dams.
http://www.standardmedia.co.ke/business/InsidePage.php?id=2000002899&cid=14&story=KenGen%20signs%20Sh98.6b%20geothermal%20contract
Kenyahttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000002899&cid=14&story=KenGen%20signs%20Sh98.6b%20geothermal%20contract#) Electricity Generating Company (KenGen) has signed a Sh98.6 billion ($1.314 billion) contract with a New Zealand firm to implement a 280-megawatt geothermal power project in Olkaria, Naivasha.
The project, which comprise Olkaria I and Olkaria IV fields is part of KenGen’s fast track projects and is the biggest geothermal power project in Kenya.
It will be financed by the Government, Japan International Co-operation Agency, French Development Agency, European Investment Bank, World Bank, German-owned development bank (KfW), and KenGen.http://www.standardmedia.co.ke/images/wednesday/buscap100210_01.jpgAn aerial view of Olkaria geothermal power station. The contract is part of an initiative to stabilise the power situation in Kenya before KenGen starts implementing plans to add 1,500 MW to the national grid. [PHOTO: JACOB OTIENO/STANDARD]
The financing will include the cost of the power planthttp://images.intellitxt.com/ast/adTypes/mag-glass_10x10.gif (http://www.standardmedia.co.ke/business/InsidePage.php?id=2000002899&cid=14&story=KenGen%20signs%20Sh98.6b%20geothermal%20contract#) and drilling of the wells.
Three-year period
KenGen Managing Director, Mr Eddy Njoroge and Mr Darryl Judkins, the Sinclair Knight Merz Limited Project Manager signed the contract on behalf of their organisations.
The implementation period is three years starting this month with a target completion date of 2013.
In a statement yesterday, KenGen said the consultancy services would include technical design, preparation of tender documents, pre-qualification of potential bidders, tender evaluation and contract negotiations, and supervision of construction contracts and other support during the warranty period.
The scope of the project includes four 70MW power-generating machines, steam gathering systems, sub-stations, transmission lines and other infrastructure.
KenGen has finalised the procurement process to fast track the purchase of two drilling rigs in its continuing effort to expand geothermal power generation.
The move follows the rejection of an appeal by one of the unsuccessful bidders who had taken the matter to the Public Procurement Appeals Board.
Expansion strategy
The procurement of the two rigs is part of the geothermal capacity expansion strategy.
The power producer hopes to expand its generation capacity by 528MW by 2012 and 1,635MW between 2013-2019.
Last year the utility firm raised Sh25 billion through a Public Infrastructure Bond Offer so as to invest in additional power projects. The initiative is part of the company’s five-year strategy (2008-2012).
Projects that would benefit from the bond issue include a thermal plant in Mombasa (120 MW), upgrading of Tana, Masinga and a third unit of Kindaruma dams.
http://www.standardmedia.co.ke/business/InsidePage.php?id=2000002899&cid=14&story=KenGen%20signs%20Sh98.6b%20geothermal%20contract