A Chinese consortium has committed to paying a fine should they miss a deadline to complete the transmission line linking Lake Turkana Wind Power to the national grid by August 31.
The consortium, consisting of NARI Group Corporation and Power China Guizhou Engineering Company has been awarded a Sh9.6 billion ($98 million) contract following the termination of a contract last year with Spanish firm Isolux.
The firms have committed to pay a fine of Sh1.3 billion ($10 million) per month should they fail to meet the August 31 deadline.
Media cited the Kenya Electricity Transmission Company stating that the 428km power line is currently 70% complete.
The power line stalled following the termination of the contract with Isolux last August after it was placed under receivership over debt and liquidity challenges. Read more…
The line will evacuate the wind electricity from the northern town of Marsabit to Suswa substation in Narok, the country’s main interchange for power from different sources.
Further delays on Turkana Wind Power
The energy ministry early this month said further delays beyond June would attract a Sh1 billion ($10 million) fine monthly to be absorbed by taxpayers through their power bills.
“The government is discussing with the developers to work with the new August 31 timeline, not June. That’s why the contractors have committed to pay the fines themselves should there be delays of their making,” said Ketraco managing director Fernandes Barasa.
Failure to connect the wind farm to the national grid has left the developers stranded with power, amid pressing cash needs such as loans repayment.
To this end the developers of the Lake Turkana Wind Power fined Kenya Sh5.7 billion ($59 million) for the delays of the high-voltage line 400 kilovolts.