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Press Releases

December 10, 2010

Signing of Japanese ODA Loan with the Republic of Kenya
- Promoting International Power Interchange in East Africa and Energy Savings through Improvement of Transmission Efficiency -

PhotoSigning Ceremony

1. On December 10, 2010, the Japan International Cooperation Agency (JICA) signed a Japanese ODA loan agreement with the Government of the Republic of Kenya in Nairobi for up to 12.41 billion yen for the Olkaria-Lessos-Kisumu Transmission Lines Construction Project.

2. Under the Olkaria-Lessos-Kisumu Transmission Lines Construction Project, transmission lines will be constructed from the Olkaria geothermal power production district in Rift Valley Province, where Japanese ODA loan finances a power project, to Kisumu in Nyanza Province via Lessos in the same province. Spanning approximately 290 kilometers, the construction of transmission lines will be accompanied by an expansion in substation facilities, with the objective of providing a stable power supply to Kenya’s western region, where the central city of Kisumu will be facing pressing power needs predicted in years to come. These lines will be connected to the transmission lines being constructed in neighboring Uganda under the Interconnection of Electric Grids of Nile Equatorial Lakes Countries Project, also supported by a Japanese ODA loan, aiming to provide a stable supply of electrical power to East African region through a transnational power interchange. This Japanese ODA loan will be allocated toward the construction of the transmission lines and substations, as well as to consulting services.

3. Nationally, the shortage of the power supply deepens as each day goes by. With approximately 55 percent of all power generation capacity dependent on hydroelectric generation, Kenya’s power supply has been instable due to the seasonal variation of rain falls. The expansion of power supply facilities to meet future demand is therefore an urgent issue. All of sub-Saharan Africa, including Kenya, is subject to the severe impacts of climate change, including frequent droughts and flooding. The Kenyan government has developed a climate change policy for implementing mitigating measures including energy savings and renewable energy initiatives, and also in adaptation measures including the health, agriculture and water fields. Under this project, voltages higher than what is possible with current lines will be transmitted, decreasing transmission loss and enabling more efficient use of power. Additionally, transmitting power from the Olkaria geothermal power production district to consumption areas will contribute to the enhancement of green energy use, meaning that this project is qualified as Climate Change ODA Loan.

4. At the Fourth Tokyo International Conference on African Development (TICAD IV) held in Yokohama in 2008, the Japanese government announced a policy of "Support the formulation of policies and plans to expand usage of renewable energy, and assist renewable energy programmes including facilitating transfer of management and maintenance technology" and "Strengthen cooperation to provide a stable power supply for the whole region, and to build capacity to manage and maintain regional power networks" in sub-Saharan Africa. JICA actively furthers its support for both economic growth and measures against climate change in developing countries.

Reference

1. Terms and Amounts of Loan

Project titleAmount (million yen)Annual interest rate (%)Repayment period (years)Deferment period (years) Procurement
ProjectConsulting services
Olkaria-Lessos-KisumuTransmission Lines Construction Project12,4100.25%0.01%4010General untied

2. Project Summaries

Olkaria-Lessos-KisumuTransmission Lines Construction Project

Executing Agency

Kenya Electricity Transmission Company Limited
Address: Second Floor, Caparo Place, Chyulu Rd, Upper Hill, P.O. Box 34942-00100, Nairobi
Phone: +254 (20) 495-6283, Fax: +254 (20) 495-6000

Planned Implementation Schedule

  • (i) Completion time of project: May 2016 – when the facilities are put into service
  • (ii) Issuing of letters of invitation for consulting services (including detailed design work): December 2010
  • (iii) Tender announcement of initial procurement package for international competitive bidding on project construction: Procurement package titles:
    • Public Works 1 – transmission lines between Olkaria and Lessos
    • Public Works 2 – transmission lines between Lessos and Kisumu
    • Public Works 3 –substation expansion
    Release date: August 2011

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