Kenya suspends $736 M power line deal
Kenya’s high court has suspended a $736 million deal between state utility KETRACO and India’s Adani Energy Solutions to build and operate power infrastructure.
Image for illustration purposes. (Image credit: Miaron Billy/Shutterstock)
Kenya, Nairobi: Kenya’s high court has suspended a $736 million deal between state utility Kenya Electrical Transmission Company (KETRACO) and India’s Adani Energy Solutions to build and operate power infrastructure including transmission lines. The public-private partnership agreement between KETRACO and Adani was signed earlier this month.
On October 11, the energy ministry said it would help address persistent power blackouts and support economic growth. The high court said the government could not move ahead with the 30-year agreement with Adani Energy Solutions until the court decides on a case brought by Law Society of Kenya challenging the deal, which has argued that the power deal is “a constitutional sham” and “tainted with secrecy”.
The law society added that KETRACO and Adani Energy Solutions did not carry out meaningful public participation around the project, a requirement under Kenya’s Public Private Partnerships Act of 2021 which allows private sector development of public projects. The ministry previously said that it had run a competitive bidding process.
Source: Reuters
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