Kenya’s state-owned electricity generator KenGen has been ordered to cancel a tender worth millions of shillings for the Olkaria VII Geothermal Plant Consultancy Work. This tender was awarded to an Italian company for consultancy services of the upcoming $247.5 million Olkaria VII Geothermal Plant.
Rrason for the Cancellation of Olkaria VII Geothermal Plant Consultancy Work Tender
The Public Procurement and Regulatory Authority tribunal ruled out the the power producer company had unfairly awarded the tender to ELC Electroconsult SPA. ELC Electroconsult SPA had quoted a price of €18.16 million as compared to the Italian firm, Sintecnica Engineering and Steam SRL which is a joint venture. The joint venture had quoted a price of €16.71 million.
Also read: KenGen Issues Multi Billion Olkaria I Rehabilitation Contract
Project Factsheet
Project name: Olkaria VII Geothermal Power Plant
Location: Olkaria area, Hell’s Gate National Park, Nakuru County, Kenya.
Estimated cost: $247.5 million
Expected commissioning date: The first turbine is expected to be commissioned by June 2026.
Significance: Olkaria VII is a crucial part of KenGen’s strategy to add an additional 3,000 MW of renewable energy to the national grid over the next decade. This will further solidify the position of Kenya as a leader in geothermal energy production in Africa.
Other Latest Milestone for KenGen
In another big step made in one of KenGen’s geothermal projects, the company made an announcement regarding the arrival of critical equipment for its newest geothermal power plant at the Olkaria geothermal complex.
The upcoming Olkaria I project which is located in the geologically active Rift Valley. It will add a total of 63MW of renewable energy to the national grid upon completion. This will therefore further cement Kenya’s reputation as a global leader in geothermal energy production.
KenGen mentioned in a statement that two steam turbines and two generators that were destined for Units 2 and 3 of the facility have already been successfully delivered to the project site. These equipment were shipped from Japan earlier this year. Lastly, as for the Olkaria I facility, its completion status was reported to be at 70%. The first turbine on the facility is expected to be commissioned by June 2026.
