Agreement for Lessos-Loosuk & Kisumu-Musaga Transmission Lines Project in Kenya

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Power Grid Corporation of India Limited (POWERGRID) has signed a joint development agreement with Africa50 to develop the Lessos-Loosuk & Kisumu-Musaga Transmission Lines Project in Kenya, on a public-private partnership basis.

As per the agreement POWERGRID, which is an Indian statutory corporation under the jurisdiction of the Indian government’s Ministry of Power, will provide technical and operational know-how to the project, which entails the development, financing, construction, and operation of the 400kV Lessos-Loosuk and 220kV Kisumu-Musaga transmission lines.

On the other hand, Africa50, an infrastructure investment platform established by African governments and the African Development Bank to help bridge Africa’s infrastructure funding gap, will bring its project development and finance expertise on to the table, and act as the go-between the government of the East African country and private investors.

Expectations for the Lessos-Loosuk & Kisumu-Musaga Transmission Lines Project

The project upon completion will improve both the supply and reliability of power transmission in the Western region of Kenya according to Shri K. Sreekant, the Chairman and Managing Director of Power Grid.

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“Transmission plays an important role in bringing efficiency in the entire electricity supply chain, and a robust transmission network, particularly, not only imparts reliability and security to the electricity grid but also allows non-discriminatory access to buyers and sellers, which spurs the competition that results into competitive electricity prices to the ultimate consumer,” explained Sreekant.

The project will be the first independent power transmission (IPT) in Kenya, and it will set a reference point in the entire continent as the first financing of transmission lines on a PPP basis.

It will also create a demonstration effect to help increase private sector investments into the expansion of Africa’s power transmission networks, which is critical to bridging the continent’s electricity access gap.