Lamu coal power plant
Bucket of coal and helmet coal miner. Credit: 123rf
The Kenya for Justice and Development Trust (KEJUDE) is demanding government's full disclosure on the dealings of Amu Power Company.

This comes just a month after energy cabinet secretary Charles Keter confirmed progress on the development of Lamu coal power station, which is being developed by Amu Power Company.

According to the Star, the justice authority states that there is no demand for power produced by the project to justify a hefty investment.

The Trust is questioning why President Uhuru Kenyatta led a delegation of investors to China to oversee the procurement of a Sh200 billion ($2 billion) loan to fund the private venture, media reported.

The association argues that the country produces excess power, with a capacity of about 2,400MW, against a peak demand of below 1,800MW.

Amu Power Company

Amu Power Company is a special purpose project company that is a joint venture between Gulf Energy and Centum Investment, tasked with building and operating a 981.5MW coal-fired thermal power plant in the Manda Bay area of Lamu County.

[quote]According to the information available on the company’s website, the project forms part of government’s blueprint for producing 5,000MW of power.

Meanwhile, KEJUDE noted that it is apprehensive that government made concessions against public interests, including Kenya Power.

“I suspect that the government has undermined public interest by entering into concessions to restrict its own investments in power generation so as to accommodate the Lamu coal-fired power plant,” executive director, Okiya Omtatah said.

On 8 June, Omtatah wrote a demand letter to Attorney General Githu Muigai, Treasury PS Kamau Thugge and his Energy counterpart Andrew Kamau, media stated.

The Star reported that in the letter, Omtatah warned that failure by the officers to disclose the information and supporting documents will result in legal action.

Demand letter

Among the documents the group wants a copy of the Power Purchase Agreement (PPA) signed by Kenya Power and Amu Power, media reported. Read more…

It also wants details made public of any loans where the PPA has been used to secure or guarantee and any details of any loan guarantees by government or any other agencies for the Lamu Coal Power plant.

“Given the grave concerns of this project, it is very important and very urgent that the government makes full disclosure of its dealings with Amu Power,” Omtatah said.

He added: “Further and in particular, pursuant to articles 10 (2), 35 (1,3), 46 (1b), 73 (2d) and 232 (1b,e,f) of the constitution, we request to be given the above documents.”

 

Featured image: 123rf

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