Top firm KenGen lists 5 bidders for the Olkaria VI project

Recent developments from the Kenya Electricity Generating Company (KenGen) regarding Olkaria VI power plant have been announced.

After the completion of of the first stage of the Phase two that was the request for prequalifications, KenGen has now Gazetted 5 bidders for the Public Private Partnership (PPP) Olkaria VI project that is set to generate and add approximately 160MW to Kenyas total electricity output. The listed firms are Sumitomo Corporation,Enel Green Power, ITOCHU Corporation, Oromat Technologies Inc and a consortium of Engie Energie Services, Toyota Tshusho Corporation and DL Koisagat Tea Estate.

In November 2019, KenGen invited bidding for a PPP for development of Olkaria VI in which it will be the minority shareholder at 25% whereas the external partner will hold 75% of the stake in the joint venture.
The Project will entail a Build, Own, Operate and Transfer (BOOT) basis.

The selected firm will finance, construct, own and operate the power plant and the associated facilities. at the end of the operational term the Olkaria VI project will be transferred back to KenGen,
“The successful bidder will enter into a joint venture with KenGen and will finance, construct, own and operate the power plant and the associated facilities and transfer the project back to KenGen at the end of the operational term,” the company said.

It is expected that in June 2020, requests for proposals (RfP) will roll out paving way for the successful bidder to proceed to the final stage of implementing the project agreements. KenGen has previously solely constructed the Olkaria I – Olkaria VI units through syndicate loans from multilateral and bilateral institutions, local infrastructure bonds, equity and state to state concessionary funding.

The Olkaria VI PPP is the first of its kind for the biggest Sub-saharan African geothermal electricity production firm. It will be subjected to the scrutiny of PPP Act 2013 and the PPP Regulations 2014.