The Kenya Electricity Transmission Company Limited (Ketraco) is set to spend more than Sh500 million to permanently restore the transmission line Loiyangalani–Suswa.
This is after four pylons tower along the line collapsed at Longonot, prompting Ketraco and Kenya power teams to carry out temporary repairs that restored the power on January 1.
It collapsed on December 16 cutting the 300MW lake Turkana Wind power (LTWP) plant in Marsabit.
This line supplies about 17 per cent of Kenya’s total demand peak.
Such lengthy repair period would come at a huge cost for the State, however, Ketraco managers have recommended a special contractor option to restore the line as fast as possible and cut on liabilities from LTWP.
This is compared to using the open tender method, which would take 387 days to get a contractor and restore the line.
The penalty relates to the failure by Ketraco to offer LTWP infrastructure through which it can sell electricity to Kenya Power.
Over the 342 days, Ketraco estimates that it might be required to pay a DGE penalty of Sh13.4 billion at a daily rate of Sh39 million in case the line is not available.
It has requested the board to give it the go-ahead to recruit a new contractor to restore the transmission line permanently through a special method meant to cut the red tape in the procurement process.
“It is in the national interest that the special method of procurement is employed to fast track the procurement of a new contractor to permanently restore the Loiyangalani–Suswa line,” said the committee.
The Public Procurement and Disposal Act allows the use of procurement where “exceptional requirements make it impossible, impracticable or uneconomical” to use the open tender procurement method.
The Ketraco management noted that by using the specially permitted method, the company could get the line restored permanently in 45 days.
