KenGen Awards Contract Valued at $1.3 Billion to a New Zealand Based Company

Posted by Staff Writer on Tuesday, February 9, 2010 at 10:01pm.

Kenya Electricity Generating Company (KenGen) has awarded a contract valued at $1.3 billion to Sinclair, Knight, Merz (SKM) Ltd., a New Zealand based firm.  The project, a 280-megawatt geothermal power plant is Kenya’s biggest geothermal power project to date.

Financing for the three year project is provided by multiple donors including the Government of Kenya, Japan International Co-operation Agency(JICA), French Development Agency, European Investment Bank, The World Bank, German-owned development bank (KfW), and KenGen.

KenGen’s Managing Director, Eddy Njoroge and SKM’s Project Manager, Mr Darryl Judkins signed the contract on behalf of their organizations.

In a statement, KenGen said the consultancy services would include technical design, preparation of tender documents, pre-qualification of potential bidders, tender evaluation and contract negotiations, and supervision of construction contracts as well as other support during the warranty period.

The scope of the project includes four 70MW power-generating machines, steam gathering systems, sub-stations, transmission lines and other infrastructure.

KenGen has finalized the procurement process to fast track the purchase of two drilling rigs in its continuing effort to expand geothermal power generation.

The move follows the rejection of an appeal by one of the unsuccessful bidders who had taken the matter to the Public Procurement Appeals Board.

This deal is part of KenGen’s expansion strategy and will increase its capacity by 528MW by 2012 and 1,635MW by 2019.

Last year KenGen raised Sh25 billion through a Public Infrastructure Bond Offer to fund projects across Kenya, increasing its capacity in several Provinces across Kenya.  Including a thermal plant in Mombasa, Tana,Masinga and Kindaruma dams.

The company is listed on the Nairobi Stock Exchange (NSE) and is trading at around K Sh. 14.00 per share.