Kenya High court rules on geothermal power accessories tender

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The Olkaria geothermal power plant
The Olkaria geothermal power plant

A three judge bench at Kenyan Court has ruled that a geothermal power accessories tender to proceed.

Daily Nation reports that the Court of Appeal ruled in favour of Rentco East Africa.

The firm  led a group against Russian firm OJSC Power Machines Ltd’s led group.

Geothermal power accessories tender

The reports further stated that the  Rentco East Africa‘s proposal, from the technical and financial analysis presented had the highest megawatt output. Lantech Africa and Toshiba Corporation formed part of the group as well.

According to the judges, the group also presented the highest availability factor and tariff combination. Furthermore, through this Kenya Electricity Generating Company Ltd (KenGen) will be able to get the highest revenue of $785,000.

Meanwhile, according to the same report the OJSC Power Machines, Transcentury and Civicon group had the lowest guaranteed output. However, the same group had the highest connection cost.

KenGen had told the court that awarding the contract to OJSC’s group would translate an annual net loss of $1m.

Breaking down revenue

Public Procurement Administrative Review Board had noted that OJSC’s group had not provided a breakdown of its proposed monthly income of $822,000.

KenGen drew the conclusion that the difference between OJSC’s group net guaranteed output of 50.5MW and that of Rentco’s group (58.42MW) was equivalent to 15%.

“KenGen appreciated that if the tender was awarded to OJSC’s consortium, then some 7.42MW would have to be obtained through the expensive thermal power, which would translate to a daily cost of Sh4 million ($38,000),” the three-judge Bench stated.

 

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