Adani also eyes Kenya’s energy deal amid uproar over JKIA agreement
By Lucy Mumbi |
The expansion of JKIA is part of broader efforts to enhance Kenya's infrastructure, with energy partnerships and airport development at the forefront of these initiatives.
The Indian multinational Adani Group Holdings is reportedly interested in securing an energy deal in Kenya, alongside its proposal to expand Jomo Kenyatta International Airport (JKIA).
Transport Cabinet Secretary Davis Chirchir confirmed this while addressing a Public-Private Partnership (PPP) with Adani, which has also drawn attention to other sectors in the country.
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In an interview with Citizen TV on Thursday, Chirchir was pressed to clarify whether Adani Group had ongoing discussions with the Kenya Electricity Transmission Company (KETRACO).
He responded, "It could be one of the PPP proposals in energy. There is one line between Gilgil-Thika-Malaa which is still going through the due process."
Questions were also raised regarding the registration of Airports Infrastructure PLC in Kenya by Adani Group.
In response, Chirchir stated, "I am not aware. We are at the stage of due diligence, so if what you are saying is true, it will come out."
Additionally, the CS denied any knowledge of a connection between Adani’s potential investment in JKIA and the government-to-government (G2G) oil deal.
On the matter of a 30-year concession, Chirchir explained how PPP agreements work, noting that the arrangement allows Adani to recoup its investment before handing over the asset to the government.
"The way PPP works is that we give you a period to earn back on your investment. After 30 years, Adani earns back their money and then they hand it over to the government and move out. 100 per cent reverts to government in 30 years," he said.
To upgrade the airport, it has been estimated that it will cost $2 billion (Sh257.9 billion), a figure the government has said it cannot afford on its own due to fiscal constraints.
When asked why the government had not openly expressed its intent to seek an investor for the JKIA expansion, Chirchir defended the approach.
Despite a June 2023 announcement by his predecessor, Kipchumba Murkomen, that the government would advertise a request for expressions of interest under a Privately Initiated Proposal (PIP) model, Chirchir maintained that PIPs do not require public advertising.
"For privately initiated proposals, you don’t advertise. I can look for an opportunity based on where I think the government needs support and privately initiate a proposal. That proposal then goes through the due process, and if the government deems it fit, and it goes through the due approval process in 20 stages, then it becomes a project," he explained.
The expansion of JKIA is part of broader efforts to enhance Kenya's infrastructure, with energy partnerships and airport development at the forefront of these initiatives.
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