Thursday, January 26, 2006

Energy: China to finance and build Kenyan power lines

Continuing its take-over of the African continent, China is to provide $19 million for the construction of two high voltage power lines in Kenya. The money will be used by the Kenya Power and Lighting Company Ltd, to improve supply quality. China CAMMC Engineering Company Ltd will undertake construction work and also establish a 61 km long 132kV line from Chemosit in Kericho to Kisii, where a sub-station will be constructed.

A $25 million soft loan extended by Exim Bank of China would finance the first phase of the project, The balance of US$6 million will be used by KPLC to purchase electricity materials and equipment from Chinese manufacturers. In addition, China will supply a further $35 million to part-finance phase two of the project estimated to cost $150 million.