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Nairobi, Addis in landmark 400MW power purchase deal
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Nairobi, Addis in landmark 400MW power purchase deal
Nairobi, Addis in landmark 400MW power purchase deal
Details of the high-stakes negotiations before Kenya signed a 400MW electricity deal with Ethiopia two weeks ago are emerging, revealing that Nairobi managed to talk down the initial charges proposed by Addis Ababa as too high.
The deal, which analysts say presages a new era of power trading in the region, was arrived at after a great deal of haggling, with the Ethiopians pressing for a higher price on the grounds that Kenya is currently buying even more expensive power from thermal plants.
The deal ushers in one of the biggest power pool projects in the region, and will serve as a model for future arrangements under the Eastern Africa Power Pool.
The deal is a take or pay contract, meaning that Kenya has to pay for the 400 MW supply even if it is not using it.
It will pay US cents 7 per kilowatt hour. The transmission line is expected to be completed by 2016 at a total cost of $1.2 billion.
The agreement for continuous supply of 400MW was concluded in Addis Ababa by Kenya Power and the Ethiopian Electric Power Corporation after two days of intense negotiations from January 6-8.
The power purchase agreement is the second in Kenya’s history as it seeks long term solutions to its perennial power problems. A decade ago, Kenya imported about 30MW from Uganda.
12 comments
It frustrates me when I see a gov that sells land instead of encouraging its own people do the farming. Same with the hydro power.
All will take the cream of the profit leave a good cash in the hand of the corrupt leaders and reduce the people to slave.
Ere! uwur lewur ymeral wey?
If the Ethiopian people start using the Electricity then the government will not have anything left to sell to Kenya and others. The cash that will be generated by selling to outside government will bring more dollar than selling it to the local people. The need the dollar for their personal wealth than provide cheep electricity to the ethiopian people so they can make things and advance there lively hood. Anything that is left over can be sold to Kenya or anyother country in the region. First thing should be meet the local demand and then sell excess. The first thing this Leaba government does is to sell first and what ever left over will be provided to local demand. I dont think they want the local demand to increase because it will reduce the export amount, which means less money in their pockets.
Even Addis, the capitial city does not have enough power since you came to power. I have never seen Addis so dark until Meles and his inept followers come to power. One can only imaging if the capital is dark and only few places have power what would the rest of Ethipia will be.
So this far fetched impossible task will never be realized as long as those stupid Meles and EPRDF are present in Ethiopia. They are the regime of darkness.
Let's provide electricity to every household of the Ethiopian people before saling our resources to others.... No justification to provide our resource to others, while our young Ethiopian generations struggling to do their homeworks using candle lights...Enough is enough!!
God bless the world!!
This is what Ethipia is doing, we need to accelerate our develpmental efforts and emerge out of poverty zone. Those lords of poverty in the diaspora will continue to cry carrying different logos from environment to human rights. These groups thing the two interesting words "human rights" and "envirnment" are their baptism names, kkk , They seem to have forgotten that all humans do care about sustainable deelopment.
Wlldone EThiopia
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