A Ksh21 billion wind power project in Lamu could stall, following alleged frustrations by Kenya Power pushing key financiers to the brink.
The project in Mpeketoni has a potential of producing 90 megawatts was to start in 2016, but it is reported that Kenya Power has failed to sign and approve the Power Purchase Agreement (PPA), forcing the key financiers to contemplate pulling out.
The project is financed by Elicio Company from Belgium and Kenwind Holdings Ltd from Kenya.According to the director of the project Susan Nandwa said that they had already gotten a nod from the Energy and Petroleum Regulatory Authority (EPRA).
” The Board of Directors in Belgium, which is the financier of the project, is tired of the many frustrations and wants to withdraw. We’re being taken in circles. The first tariff was 12 cents and then they changed to 11 cents. Now we are told it has been lowered to only seven cents. Depite that we are determined to establish the project. The problem is now with Kenya power. They were given the PPA to approve and sign and approve but they are still reluctant to do so. Something needs to be done urgently so that this project can kick off without further delays,” said Ms Nandwa.
Business Daily reports that Kenya Power has denied the claims, accusing the project managers of failing to meet conditions required for approval.
“It’s true we have the PPA with us, but we are waiting for Baharini Wind Power to meet certain requirements before approving and signing the project. The Kenya Power board will soon meet and discuss with the investor to know whether all requirements have been met. People should know that approving a PPA is a process,” said Kenya Power acting CEO Jared Othieno.
Completion of the project will add 90 megawatts to the current production of 1,429 megawatts in the country.