State energy producer Kenya Electricity Generating Company (KenGen) has cut down the list of companies still running in the bid to build the 140 MW Olkaria VI geothermal power plant in Kenya under a Public-Provate Partnership (PPP) model.
Yesterday, the power producer published an updated list of four companies. Missing from the shortlist is a consortium of four firms – Engle Energie Service (France), Toyota Tsusho Corporation (Japan), Kyuden International Corporation (Japan) and DL Koisagat Tea Estate (Kenya).
Kenya plans to build a 140MW geothermal power plant under the public-private partnership (PPP) framework, entailing the development of a geothermal power generation plant on a Build, Own, Operate and Transfer (BOOT) basis.
“The successful bidder will enter into a joint venture with KenGen and will finance, construct, own and operate the power plant and the associated facilities and transfer the project back to KenGen at the end of the operational term,” the company said.
KenGen shared an updated list with the four groups still running for building the geothermal power plant with KenGen. The companies are: Ormat Technologies (US), Itochu Corporation (Japan), Sumitomo Corporation (Japan) and Enel Green Power (Italy).
KenGen plans to select a company through the tender process and together form a special purpose vehicle (SPV).
This will then build the plant under a build-own-operate-transfer arrangement where ownership will eventually revert to KenGen.
The power producer will have the right to make a cash investment of 25 per cent in the SPV.
The SPV will finance, construct, own and operate the power plant and associated facilities.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]