In East Africa, the Kenya Electricity Transmission Company (KETRACO) entered into an agreement with Japan International Corporation Agency to borrow $87 million (ZAR1 billion) to develop a 400-kilovolt power transmission line from Olkaria in Naivasha to Kisumu.
The transmission lines will stretch across Lessos in Nandi County, reported Kenyan news service The Star.
According to KETRACO managing director Joel Kiilu, 20% of the total transmission project costs will be put towards way-leave compensation.
“Acquisition of way-leaves has made it very expensive to put up infrastructure in this country,” Kiilu said on Tuesday.
Kiilu added the National Land Commission will assist the transmission company in land valuation which is needed to erect the power lines.
East African transmission line
The project will begin construction in June 2015 and will be broken into a three-build phase ending in 2017.
Phase one will include the construction of a 213 kilometer transmission line from the geothermal fields in Olkaria to Lessos, costing of $55 million (ZAR670 million).
Phase two involves the development of a 100km line from Lessos to Kisumu costing $22 million (ZAR268 million).
The third and final phase involves expanding the power sub-stations in Olkaria II, Lessos and Mamboleo, and building new ones in Kibos and Nakuru at a cost of $11 million (ZAR134 million).
“These projects will stabilize the grid and give it capacity to carry 400MW of power that will come from Ethiopia in 2017”, Kiilu said.
Bids for construction were awarded to Indian Kalpataru Power Transmission, Japanese Kinden Corporation, NARI Group Corporation and China Construction Civil Engineering Company.