Adani, African Development Bank arm get $1.3 bn Kenyan power line deal

Adani Group and a subsidiary of the African Development Bank have secured a public-private partnership (PPP) concession from the Kenya Electricity Transmission Co. to build high-voltage power lines.

“The government through Ketraco has awarded PPP concessions to Adani and Africa50 to build new transmission lines,” David Ndii, chairman of Kenyan President William Ruto’s council of economic advisers, said in a post on X. “They are hiring their project teams. The cost of these transmission lines is $1.3 billion that we do not have to borrow.”

Please do your homework. The Government, through KETRACO, has awarded PPP concessions to Adani and Africa50 to build NEW transmission lines. They are hiring their project teams. The cost of these transmission lines is $1.3b, which we do not have to borrow. https://t.co/XwBkYrfGnC

— David Ndii (@DavidNdii) September 14, 2024

Ndii shared the details while responding to a query by a user who claimed that the Kenyan government has already awarded a contract to Adani Group to build new transmission lines in the country.

The user also shared a LinkedIn job post advertising the position of Project Director at Adani Energy Solutions Private Limited in Nairobi, the Kenyan capital.

In a post on X, Ndii clarified that the proposal is not a contract.

He asked, “Which contract? Adani’s proposal is not a contract. Proposals go through evaluation, followed by negotiations, due diligence, stakeholder engagement, legal opinions, and cabinet approval before there is a contract. You are not privy to any of these, so you were speaking nonsense.”

Which contract? Adani proposal is not a contract. Proposals are evaluated, followed by negotiations, due diligence, stakeholder engagement, legal opinions, and cabinet approval before a contract. You were not privy to any of these, so you spoke nonsense. https://t.co/thyVLOTLRe

— David Ndii (@DavidNdii) September 14, 2024

Earlier, a proposal granting a subsidiary of Adani group a 30-year concession to manage Kenya’s largest airport had sparked protests. Last week, aviation workers staged a one-day strike against the plan.

Facing substantial debt, Nairobi is reluctant to accrue more loans, and advocates for private sector involvement in public projects to sustain ongoing development efforts.

Africa50, based in Casablanca, is involved in a PPP to build the 185-km Loosuk-Lessos transmission line, according to its website.

Ketraco had earlier said that the unit of African Development Bank would build 324 km of high-voltage transmission lines at a cost of $172.5 million.

Adani Energy Solutions Ltd is considering managing the Gilgil-Thika-Malaa electricity line under Ketraco’s supervision, Citizen Digital reported last week.

Adani refutes fake press release

Meanwhile, in a separate development, Adani has refuted a fake press release on the group’s statement that was doing rounds in social media ‘warning Kenyan protestors of serious consequences’.

The release also “threatened” to release ‘names of government and individual stakeholders, who got bribes from the company for its projects in Kenya’.

“Certain vested interests with malicious intent are circulating multiple fraudulent press releases, including one titled “Adani Group Denounces Baseless Accusations and Threats”, related to our presence in Kenya,” the conglomerate said in a statement.

“We categorically state that neither the Adani Group nor any of its companies or subsidiaries have issued any Press Releases related to Kenya. We strongly condemn this deceitful act and urge everyone to disregard these fake fraudulent releases completely. We will take legal action against anyone involved in spreading false narratives,” it added.