President Ruto Defends Power Projects with Private Investment
President William Ruto has strongly supported the billion-shilling power transmission projects given to the Adani Group under a Public-Private Partnership (PPP). He encouraged Kenyans to embrace this type of investment as it helps reduce taxes and avoid taking more loans.
The Role of Private Sector Financing
Ruto explained that getting private companies to finance large projects, such as power transmission, will help lessen the financial burden on Kenyan taxpayers. Instead of borrowing money, private investors take on the costs, and the government repays them through negotiated fees.
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Project Details
While speaking at the launch of the 35-megawatt (MW) Orpower 22 Power Plant in Nakuru, Ruto praised the Adani Group for investing in Kenya’s energy sector. Some key points of the project include:
- Investment: The Adani Group is investing KSh 95.7 billion to operate and maintain transmission lines and substations.
- Duration: They will run these operations for 30 years.
- Goal: The aim is to reduce power blackouts across the country.
Ruto pointed out that similar private-sector investments, such as the Nairobi Expressway, have proven successful. He emphasized that PPPs are a “win-win” strategy that allows public services to be delivered without increasing taxes.
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Importance of the Private Sector
The President highlighted the critical role the private sector plays in developing the country. He urged Kenyans to recognize that such partnerships are essential for unlocking Kenya’s full potential.
- Example of success: The Nairobi Expressway, where private investors earn back their money through toll fees, shows how private sector participation can lead to important national developments.
- Public services: Through PPPs, Kenya can continue to offer essential services like energy without having to rely on loans or raise taxes.
35MW Orpower 22 Power Plant: A New Milestone
The Orpower 22 Power Plant is part of a PPP with China’s Kaishan Group, which has invested KSh 12 billion. This project marks a first for Kenya, creating a new transmission line connecting Menengai with areas like Ol Kalou, Nanyuki, and Meru.
Key points about the plant include:
- Investment: KSh 12 billion from China’s Kaishan Group.
- Transmission line: This will connect Menengai to various regions, increasing energy supply.
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Future Energy Projects
Ruto also highlighted that Kenya has only used 950 MW of its estimated 10,000 MW geothermal energy potential. He called on the private sector to invest in these resources. The Geothermal Development Corporation (GDC) is tasked with leading Kenya’s transition to geothermal energy.
- Geothermal opportunities: Ruto emphasized that geothermal projects can help drive economic growth, and the GDC must move quickly on these projects using local workers and skills.
Additional Investments: Green Hydrogen and Ammonia
The General Manager of Kaishan Group, Dr. Yan Tang, revealed plans for more projects, including using geothermal power to produce green hydrogen and ammonia. These will benefit Kenya’s agriculture and help reduce carbon emissions.
- Green ammonia: It can be used as a fertilizer or as a cleaner alternative to diesel fuel, supporting Kenya’s push for net-zero emissions.
Conclusion
President Ruto’s endorsement of PPPs reflects his vision for using private investment to propel Kenya’s development without burdening taxpayers. With these projects, Kenya is on a path to improve energy access, boost the economy, and protect the environment.
Sources:
- Statement from President William Ruto
- Comments by Dr. Yan Tang, Kaishan Group General Manager