Mombasa-Nairobi Transmission Line

Promoter – Financial Intermediary

Kenya Electricity Transmission Company (KETCo)

Location

• Kenya

Description

Construction of a 450 km long 400 kV double-circuit power transmission line from Mombasa to Nairobi, construction of a 19 km 220 kV double-circuit line in Nairobi area, and expansion of substations in both Nairobi and Mombasa.

Objectives

The project is primarily intended to transfer power generated in the coast area to the main load centre around Nairobi, the capital. The Government of Kenya’s electrification target is to add 1 million consumers to the grid over the next 5 years. This will require substantial investments in both generation and transmission. Substantial new thermal generation capacity is planned in Mombasa. The project is designed to evacuate this new power capacity to Nairobi.

Sector(s)

• Energy

Proposed EIB finance (Approximate amount)

EUR 60 million.

Total cost (Approximate amount)

EUR 214 million.

Environmental aspects

Due to the project’s characteristics, the Kenyan legislation requires an environmental impact assessment. A consultant has therefore prepared an EIA report which identifies a number of issues such as the vicinity of a national park and the need of moving up to 280 households. Public consultations have highlighted the need for adequate and timely compensation of affected people. The environmental authority has issued its approval of the project.

Procurement

Procurement of supplies envisaged to be financed by the EIB will be in line with the Bank’s Guide to Procurement to which the promoter is familiar. Other contracts will also be tendered internationally, in line with the rules of the other lenders involved.

Status

Signed - 21/12/2009